How can our financial education influence our finances today?
Whether we realize it or not, the way our parents looked after their financial health has probably been passed on to us, along with daddy’s size or mom’s sense of humor. This can happen in different ways, but the most common examples we see are:
• Some people have never learned about money:
Some parents are brought up in homes where there is no open conversation about money; it is therefore not surprising that some skills have not been passed down from generation to generation. This can lead to a general lack of common money management skills.
• Some people were spoiled when they were children:
In this situation, unrealistic expectations may arise regarding lifestyle versus finances. If a child grows up with whatever he desires, a sense of entitlement can linger into adulthood, causing a propensity to overspend and take on debt (if income does not coincide with the style choices of life).
• Some people had parents who were too frugal:
In these cases, we can see a clear desire to overspend. It can be a kind of compensation, especially if a person felt denied, or regularly deprived, as a child.
If you think you fall into one of these categories and want to learn more about what a healthier financial situation might look like for you and / or your loved ones, contact one of our advisors today.
Spire Advisors of Assante Capital Management Ltd.