Top 12 Financial Advice My Parents Gave Me

This week, I asked some of the Top Personal Finance and Money Bloggers the same question:

What was the best financial advice you received from your parents and why?

Following are the 12 best responses I received.

The Bible says “Train up a child in the way he should go, and when he is old he will not depart from it.” That applies to all good things (and bad things too unfortunately!), but it’s especially clear that these personal finance experts were launched early on the road to financial success by key money concepts they learned in their formative years. So impacted, in fact, that they feel compelled to share their financial smarts with the world. Hooray for wise parents!

Derek Sall of Life and My Finances

Best Advice: Live well below your means and spend money on what you value
Who Gave It: Mom
Why It Was So Valuable: My mom said that people often stared at us blankly when we told them that we sent all five of our kids through private school. “How did you do it??!!” they asked, as we stood in their driveway next to their two BMWs and their $300,000 mini-mansion. My parents sacrificed for the betterment of my future, and the future of all my siblings! They were excellent role models of what I want to be for my children.

Erin Lowry of Broke Millennial

Best Advice: It’s not revenue but net profit that counts
Who Gave It: Dad
Why It Was So Valuable: My Dad used a real life moment (me selling Krispy Kreme donuts at my mom’s yard sale) to teach me a basic economic concept at age seven. Not only do I cite this moment as the foundation of my financial literacy, but it triggered a series of events throughout my childhood in which my parents made sure my sister and I understood money in order to become enabled, not entitled. From the Krispy Kreme donut moment on, money never felt taboo. Rather, my parents were incredibly open and honest in financial discussions and never once fought about money. This set me up to always feel in control, even when I barely earned enough to get by. That alone may be the best gift my parents ever gave me in life.

Eat the Financial Elephant

Best Advice: It doesn’t matter how much money you make – it matters what you do with your money
Who Gave It: Both Parents
Why It Was So Valuable: Most people think that the difference between rich and poor is how much money you make, how big your home is, how nice of a car you drive, etc. The reality is that if you invest your money and live a low-cost lifestyle you will eventually become financially free, which is my definition of rich. If you need to remain a slave to your job or business to stay on the earn->spend->earn->spend treadmill, even if you make a lot of money and have valuable possessions, you are not rich. Although I didn’t appreciate it until later, the reason I think this advice was so powerful is that I witnessed them live the advice, rather than just hearing them say it. They were able to give us a nice lifestyle, retire securely, help us with college, etc. without making a lot of money.

Grant of Millennial Money

Best Advice: Money is freedom
Who Gave It: Dad
Why It Was So Valuable: He encouraged me from a very young age to try to make and save money. He explained to me in simple terms that being smart with money would give me more opportunities and open more experiences. Money is just a tool, he would say, that you can use to live the life you want. So taking control of your money gives you control over your future.

Retire Before Dad

Best Advice: Pay off your credit card balance every month
Who Gave It: Dad
Why It Was So Valuable: He explained how credit cards are bad for some people, but convenient for responsible users. He told me he always paid his off. That simple conversation explained the dangers of credit card debt. Also, hearing that my Dad always paid off his balance made me want to do the same. Twenty-some years later I’ve never carried a balance, but reap plenty of rewards from responsible use.

Julie Rains of Investing to Thrive

Best Advice: Save more than I did
Who Gave It: Dad
Why It Was So Valuable: I’m a natural saver but when my dad encouraged me to save, he reinforced this habit and tendency as a positive one. His statement also showed me that this habit needs to be intentional, not just something that happens on its own. As a result, I saved money from summer and school jobs even while in high school and college. I began saving for retirement and investing in my twenties, which has helped my family to maintain financial stability – even in the midst of recessions, job losses, and job changes.

Canadian Budget Binder

Best Advice: You’re never too young to start saving
Who Gave It: Both Parents
Why It Was So Valuable: I was taught about money from a young age because my family didn’t have lots of it. My parents shopped at second-hand stores and I knew we were a bit different from some of my friends who always had the latest and greatest. It didn’t bother me much but I certainly wanted to make sure I had my own money. I started a paper route, worked in a kitchen as a dishwasher and later for my parents’ business. I saved all of my money in the bank and only used it if it was for something important. Not only did this money get me through University, it also helped me to buy my first flat at age 19 and my first detached house at 24. My parents were a huge influence on my financial life and even thought we are debt free and have no mortgage today, we still shop at second-hand shops. It’s fun and there are lots of great deals to be had.

Joe Udo of Retire by 40

Best Advice: Investing early is one of the best things you can do to build wealth
Who Gave It: Dad
Why It Was So Valuable: My dad kept hounding me to start investing in my 401k when I first started working. I was 22 years old at the time and I didn’t want to save for retirement. I had a crappy car and wanted to buy nice stuff. I thought I had 40 years of work left so why start now. Eventually, I gave in. If I hadn’t started investing in my 401k early, I probably would have put it off until my 30s. Luckily, I started when I was 22 and now my retirement account is worth over $500,000. It will be even bigger when I retire full time in 20 years.

Lance Cothern of Money Manifesto

Best Advice: Have fun with your money
Who Gave It: Mom
Why It Was So Valuable: My mom knew I loved saving money as a kid and would be just fine financially, but she worried I would miss out on fun opportunities because I wanted to save too much of my money. Even though I still saved most of my money and still save a respectable percent now that I have bills and such, I do set aside money for fun things like vacations to make sure I’m enjoying some of the money I work hard to earn.

JW of The Green Swan

Best Advice: Don’t put all your eggs in one basket
Who Gave It: Both Parents
Why It Was So Valuable: They told me stories how one of my uncles had most of his 401k held in company stock, AT&T. When the U.S. government broke-up AT&T in the early ‘80s, much of his retirement savings were wiped out. A very tough pill to swallow and lesson to learn.

Jim Wang of Wallet Hacks

Best Advice: Take care of your body and your relationships and you’ll grow a rich man regardless of your bank account
Who Gave It: Dad
Why It Was So Valuable: When you’re young, it seems like money is the most important. As you get older, your relationships and your health become far more important. Having that insight, that money might be important now but in 50 years it’s relationships that matter, that’s priceless knowledge. Money is just a thing you can get more of, more or less, but your health and relationships are not so easily gotten or improved.

Josh of Money Buffalo 

Best Advice: Wait two or three days before making a big purchase
Who Gave It: Both Parents
Why It Was So Valuable: Just because you have the money to afford something doesn’t mean you need to spend it right away. Waiting a day or two reduces the urgency to buy and realize you don’t really need it (i.e. A new videogame system in my case).

Do you have financial insight you learned from your parents growing up? Share it here.