Did you know that many of our financial habits are shaped by the way we were raised? The financial lessons we learn at home become deeply ingrained, affecting how we view money, spend it, save it, and how we feel about it.
We absorb information about money from the people around us from a young age. Growing up in a household where money was scarce might have taught you to be frugal or overly cautious. But you might have developed a tendency to spend freely or avoid financial planning altogether if your parents were more carefree with their finances,
These early lessons often form the basis for our relationship with money. They are the mental blueprint that we carry into adulthood, guiding us even when we are not aware of it. Thankfully, we can start to consciously change them once we recognize the impact of these learned behaviors,
Money Scarcity vs. Abundance Mentality
Growing up in a household where money was tight could send a constant underlying message that there was never enough to go around. You may have seen your parents stress over bills, avoid spending on non-essentials, or prioritize saving above all else.
This scarcity mindset can follow you into adulthood, making you overly cautious with money. Being frugal and mindful of your spending is a valuable trait, but constant fear of not having enough can also prevent you from taking healthy financial risks or making investments. You might avoid spending money on experiences or things that could improve your life because you are always worried about running out of resources.
But parents who were more liberal with money and viewed it as something that comes easily can create an abundance mentality in their children. This can encourage a healthy attitude of prosperity, but may also lead to careless spending habits. An abundance mentality is not inherently bad, but if it’s not balanced with caution and planning, it can lead to overspending, debt, or a lack of long-term financial strategy.
How Your Parents’ Relationship With Debt Affects You
You might view debt as a normal part of life if your parents regularly carried debt or struggled with credit. You may be more likely to take on credit cards or loans without considering the long-term consequences. Alternatively, you may develop a fear of borrowing money, even when it’s appropriate or necessary if your parents avoided debt at all costs or were vocal about their dislike for it, A fear of debt can prevent you from leveraging credit in productive ways. On the other hand, if you were raised with a more relaxed attitude towards debt, you might be more inclined to make financial decisions without understanding their impacts on your credit score, financial health, or future goals.
Influence of Parental Financial Arguments or Stress
Witnessing frequent arguments over money between your parents or seeing them struggle with financial stress can make you anxious about your finances. Money issues are often linked with feelings of insecurity, frustration, or shame, which can carry over into adulthood.
This emotional baggage can make it difficult to discuss money openly, even with your partner, friends, or financial advisors. You might also be more likely to avoid financial discussions altogether, which can lead to poor financial planning, missed opportunities, or a lack of understanding of how to manage money effectively.
How Parents’ Saving Habits Shape Your Own
Growing up in a household where saving was a priority might have resulted in you adopting this behavior.. You might be diligent about putting money away in savings accounts, retirement funds, or emergency funds. Saving might feel natural and empowering for you, especially if you saw the benefits of long-term planning growing up.
But you might have trouble seeing the value of saving for the future if your parents didn’t emphasize saving or if they lived paycheck to paycheck. You might focus more on immediate gratification, spending money on things that bring you short-term joy rather than thinking about long-term financial goals.
