Your Parents Did A Good Job Raising You If You Have These 11 Money Habits
When parents are intentional about teaching their children life skills, they grow up to be adults who are good with their money.
Pixel Shot / Shutterstock How we handle money and the lessons we've learned about finances in large part come from our parents, whether they actually sat us down and spoke to us about the importance of budgeting, saving, and investing, or we simply witnessed their own spending habits and how they handled finances in the home.
Schools definitely don’t take it upon themselves to teach kids how to manage financial responsibilities, so your parents absolutely did a good job raising you if you have critical money skills as an adult.
Your parents did a good job raising you if you have these 11 money skills as an adult
1. You save consistently
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One of the most important habits that come from being raised by good parents is the ability to save your money. Whenever you get paid or money comes into your life in any capacity, you take the time to calculate how much should be immediately transferred to your savings account, and not only that, but you do a good job of not touching it because you know having that cushion is important for a rainy day.
Unfortunately, many Americans aren't quite satisfied with the amount of savings in their accounts. In a poll conducted with Marist and Yahoo Finance, only 22% of respondents reported being very or completely satisfied with their savings, while 35% are very or completely dissatisfied. So if you save money consistently, your parents did a good job raising you.
2. You're able to avoid bad debt
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Individuals who exhibit good money habits are able to tell the difference between accruing good debt, which includes having a mortgage and getting an education, versus ending up in bad debt, like credit card debt or payday loans. Either your parents were incredibly vocal about avoiding putting yourself into too much debt or they ended up in bad debt themselves and made it their mission to teach you about not making the same mistake.
However, most Americans have credit card debt. A survey from Clever Real Estate found that 3 in 5 Americans (61%) are in credit card debt, owing an average of $5,875. While 23% say they go deeper into credit card debt every month and 14% say they’ve missed a payment in 2023.
3. You're diligent about tracking your spending
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Whether it's using a budgeting app or a good old fashioned Google Sheet, if you are diligent about making sure you're tracking all of your spending, your parents did a good job raising you. Parents who made sure to teach their children the importance of knowing where their money is going ended up raising adults that can make informed decisions about their finances.
In a survey from NerdWallet and The Harris Poll, it was found that around three-quarters (74%) of Americans have a monthly budget. But most people don't quite like budgeting at all.
"For me, a budget is not about restricting myself," Lynnette Khalfani-Cox, a personal finance expert said during a Q&A with JPMorgan Chase and Essence, via CNBC. "It’s about choosing how I allocate my resources and how I spend my money."
4. You invest your money
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Individuals whose parents taught them good money habits often think a lot about how they can plan for their future, which includes investing their money. Investing is the best way to lay a good foundation for the possibility of future wealth and these individuals are very much aware of that. It's not just about putting money away into a savings account, but rather putting money in stocks, bonds, or real estate.
In a Gallup study, 61% of Americans reported owning their own stocks. There are so many benefits to being able to invest money, and Americans have admitted to regretting not doing it sooner or at all. In a survey conducted by MagnifyMoney, 42% of Americans, including both investors and non-investors, said they regretted not taking full advantage of the stock market.
5. You have an emergency fund
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In a Bankrate poll, one-third (33 percent) of Americans have more credit card debt than emergency savings while another 13% of people reported not having credit card debt or an emergency savings account. Because of economic challenges, it can be hard to set up an emergency fund, but even if it's just $50 a month being added to it, then that's something.
Individuals with good money habits are aware that every little penny counts and make it their mission to have an emergency fund because you never know what can happen. Whether you suddenly lose your job or need to pay a large amount for an emergency, an emergency fund can be the cushion you need for when you're having one of those days. So if you've made sure you have one, your parents did a good job raising you.
6. You monitor your credit score responsibly
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Being able to understand and monitor your credit score is one of the most financially responsible things that an adult can do, and people with good money habits are more than aware of that. In data from a TransUnion study, 55% of Americans know to check their credit score before opening a new account.
Additionally, 86% of people believe it’s at least "moderately important" to check your credit, 30% said it’s extremely important. Fifty-eight percent said they monitor their credit monthly as well. Not only do people with good money habits check their credit scores often, but if they notice it dipping, they'll take the necessary steps to bring it back up in whatever way they can.
7. You do research before making big purchases
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Individuals with good money habits often refuse to make impulsive decisions because of how protective they are over their finances. These people will do extensive research and may even sit on wanting to make any big purchases, whether it's something necessary like a home or something as minuscule as buying a purse.
These people will compare prices on different sites, and they'll search endlessly for coupons and discounts, because they refuse to have to spend unnecessary money on something that they can get a better deal somewhere else.
If you are someone who does your research before making big purchases, your parents did a good job raising you.
8. You live below your means
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Being able to live below your means is a good indicator that you have good money habits. It means these individuals are spending less than they earn, creating spaces where they can save comfortably, and plan for financial endeavors in the future. It doesn't mean they're penny-pinching or too cheap to spend their money, but rather making smart decisions about their expenses.
They may not buy anything unnecessary or frivolous because they know they don't really need it. They're aware that while money can come and go, they would rather keep a good amount in their bank account just in case that doesn't end up happening.
9. You value experiences over material items
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People with good money habits would rather prioritize and put their money toward being able to have fun and exciting experiences than spending their money on material items, like a purse or jewelry. They have no problem splurging on trips, adventures, or unique activities with their loved ones because they know that the memories coming from those experiences are often once-in-a-lifetime.
Compared to material possessions, these individuals value the joy and connection that comes from experiencing moments that can't be replicated.
10. You're not interested in upgrading your lifestyle
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In the event that these individuals end up earning more, whether that's from a big raise or promotion at work, they don't adjust their lifestyle to match their newly acquired income. Instead, they exhibit the same restraint and responsibility that they had before earning more money because of how dedicated they are to making sure their cushion is consistent.
They understand that earning more money means in the long-run, this can be incredibly beneficial to securing a more financially free future and will do everything in their power to make sure that money doesn't deplete.
11. You're not afraid to talk about money openly
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Talking about money in the different relationships in your life is often seen as taboo, but in reality, it can be helpful to speak with your friends, family, and other loved ones about finances. That transparency can allow for others to figure out mistakes they might be making with their money, or you can find relatability in how other people in your life are managing their money.
People with good money habits are not afraid to talk about money openly with people they know because they grew up with parents that were quite open about their finances. They grew up not hearing the sugarcoated version of their parents' money and as a result, they feel quite confident in being able to talk about money as adults.
Nia Tipton is a staff writer with a bachelor's degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.