Shattering Family Money Patterns: Break Free from Financial Habits

Breaking Free from Family Financial Habits

Growing up, I often wondered why people develop certain money habits. It’s clear that our upbringing plays a significant role in shaping our financial decisions. Do you tend to procrastinate on paying bills or get sucked into clearance sales? Chances are, you learned these behaviors from a close family member.

I’m no exception. My childhood experiences have had a lasting impact on my financial mindset. I grew up in a single-income household where my parents often financed a more comfortable lifestyle. They would trade in cars, purchase timeshares, and use credit cards for everyday expenses. As a result, I developed a “shop until you drop” mentality, which later led to financial struggles.

The Consequences of Living Above Your Means

My parents’ habits seemed normal to me as a child, but as I grew older, I realized the drawbacks of living above our means. We would receive refund checks from student loans, and my mom would give us money to spend without teaching us the importance of saving. This approach to finances led to a lack of planning for the future.

When it was time for me to attend college, I was left with the burden of figuring out how to pay for it. I applied for scholarships but came up empty-handed. I reluctantly attended a local community college, only to later take out multiple student loans with variable interest rates to attend a private university.

The Roots of Financial Illiteracy

I’ve come to realize that my parents’ financial decisions were often driven by a lack of knowledge. They were sold on the idea that having material possessions was key to a “good life.” My stepdad, raised by a single mom with low income, tried to compensate for what he never had growing up. My mother’s family was middle class, but they lacked financial literacy, which was passed down to her.

Breaking Point

Two major turning points made me stray from my parents’ financial decisions. The first occurred when I went to college in Atlanta and used credit cards to keep myself afloat, only to end up with maxed-out cards and no money to make minimum payments. The second came when I moved back in with my parents and realized I needed a drastic change to achieve financial stability.

Finding a New Path

I decided to join the military, which provided me with paid housing, a steady income, and education benefits. During my active duty, I paid off my credit cards, purchased a reliable car, and built up a savings cushion. Now that I’m out of the military, I’m in school again, and tuition is paid for.

Taking Control of Your Financial Future

Realizing you’ve developed poor financial habits from your childhood can be daunting. However, it’s essential to recognize that your parents’ way of handling finances doesn’t have to define yours. We have unlimited access to resources like Google and personal finance blogs to fill in the gaps.

The first step is recognizing why you have the mindset you have about money. If that mindset won’t help you achieve your goals, work on actively taking steps to change it. You have no control over the environment you were raised in, but you can break free from family financial habits that hold you back.

What financial habits did your parents have, and have you had to unlearn any habits you saw growing up?

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