As Father’s Day approaches, we want to take some time to show our dads how much we appreciate them. We start by remembering the things they taught us and the impact they have had on our lives. For many, their financial understanding was passed to them by their fathers, which can have a lasting impression.
This is largely due to the dismal instruction of financial literacy in high schools, which is just starting to be considered as crucial information to be taught. Instead, many students have been taught these vital life skills at home from their parents. As a result, it is easy to find posts and articles detailing the impact these hardworking, money-savvy dads have had on many of their children all over the country.
That being said, the landscape of the modern family has changed over the last few generations, with 31% of households being made up of a married couple with children supported on a dual income. This means that moms are just as crucial to the financial education process as dads. However, while that’s true, many people who grew up in single-family homes can attribute much of their financial knowledge to their fathers.
So we thank our dads for instilling in us all kinds of lessons at an early age that we were able to take into our adult lives. We especially thank those dads that raised their kids alone, wearing all the hats in the family including that of the financial teacher.
To honor our dads, here are some of the lessons we are thankful to have learned from them over the years that continue to impact us today.
An old saying taught by many dads is “don’t spend money you don’t have.” It still remains a wise saying to this day. It promotes patience in saving money and budgeting for the things you need instead of finding something to spend your money on before you have even earned your next paycheck.
Focusing on saving first before spending money on only the things you can afford or need has constantly been a relevant life lesson thanks to the dads that promote this view of spending. Sometimes it all starts with a piggy bank your dad gave you to save up allowance that leads to lifelong money-saving habits.
Other money-saving tips from dads include simple actions like always bringing a packed lunch instead of going out to eat, finding fun things to do that are free, and even couponing! Dads have often taught us to save money and budget early through lessons like saving money over time to buy something we want instead of having them buy it for us right away. It’s practices like these that teach some of the most valuable financial lessons to young kids.
In the same vein, dads often taught us about debt, as it also falls into the category of money you don’t have. They have warned us about misusing credit cards as it’s easy to keep spending and putting funds on a card, but it’s also a quick way to go into lasting debt if you aren’t careful. In short, be smart about what you are spending your money on and where that money is coming from. And always make sure to pay off the bills in full and on time.
On the flip side, dads also taught us about the advantages credit cards can have when used correctly. Specifically, building up good credit and improving your credit score can be a door opener when it comes to making more significant financial decisions like buying a house.
There are so many benefits to teaching kids to invest early, and many dads recognize this and take the time to educate their children on what many might otherwise write off as a confusing and complex topic. Dads often promote this practice in encouraging investing even a small amount consistently to generate interest over the years that will pay off in the long term. Looking back, many people realize how much money they could have made by investing when they were young and start to take this advice more seriously as they get older.
No matter what advice dads like to give, it’s just as important to instill good financial behaviors in children from a young age. This not only manifests itself in healthy habits such as investing and avoiding debt, but also in working hard and developing self-control, regulation, and a long-term view of goals. Additionally, a good attitude about money encompasses giving it away as well, as teaching children about generosity is just as important as teaching them the value of the dollar. As dads cultivate these ways of thinking and acting, they continue to bring about the real fruit of wisely managing money.
People often pass down the same advice that they received when they were younger, especially if it held up to be true in their own experience. While the dads of the baby boomer generation have lived through much different financial circumstances and have different habits than, say, millennial dads, there are still things that can be learned from the older generations and many words of wisdom that still apply today. With this in mind, you can keep the chain of information going by sharing financial advice and teaching your own children the things you have learned from your parents and through your own experience, enabling the next generation to make smart choices.
As you reflect on the financial lessons taught by fathers over the years, consider how you can take your family’s financial security to the next level with life insurance if something should ever happen to you. If you have a spouse or children of your own, life insurance is a great way to ensure protection for the ones you love. At LifeQuote, we have a variety of plans to choose from so you can find a policy that best suits you. Keep passing on the money lessons you learned to your children and give the financial gift of life insurance. This way, when you’re not around, they will have the skills they learn from you, as well as the means to take care of themselves. Take the next step forward in your financial planning for the future and get a free quote from us today.