Posted by marika on Jan 21, 2012 in
Articles,
Blogs,
Family |
11 commentsSmart Parents Help Create Them
A part of me feels that certain children are “born hustlers” but from experience I know that to be a good one my parents helped tremendously. Part of being a hustler is knowing how to manage your money when you get a job. These days most people are working more than one job and that is when managing your money gets a bit difficult. The biggest challenge for me when I worked multiple jobs at a time was keeping track of what money was owed to me. Luckily, I had parents that helped me learn how to manage that because when I first started working at the age of 14, the first thing they told me was to keep track of my money. Well, when I worked that one job, it was easy to keep track of my money and calculate if companies were paying me the right thing. It did take some getting used to because getting a pay check was a bit different than getting cash in hand for babysitting or mowing a lawn. Even then, my parents trained me to always count my money.
I think it’s really awesome to see parents be active in their child’s finances especially when they get their first job. It is why I am writing this article. A couple days ago, I saw my friend Matt Sapaula post and article on this very subject because his son just got his first job. He shared some great advice on what parents should tell their children once they get their first paycheck. He is the “Smart Money Guy” so I knew the info was going to be helpful and in that article there were things my parents didn’t tell me; however, there were also things he didn’t post that my parents did tell me. Well, once I responded to his post and told him that, he challenged me to share the knowledge that my parents passed on to me.
So here it goes…
Aside from what I shared earlier, “keep track of your money”, here are a couple more things my parents told me:
- Do not get weak to credit cards- Mostly my dad preached this. I think he would have been happy if I had none, but my mother taught me that it is good to have credit. No credit is just as reckless as bad credit. Had I not been so darn hardheaded and went card happy, I would have much more money right now. Needless to say, I started getting store credit cards at the places I worked. They get you when they offer a percentage off items purchased when you open one. Nonetheless, it was great advice that I hope someone takes heed to.
- Put money in a savings account- My parents wanted to make sure that with some of the jobs I worked, I had money left to pay my taxes. If your first job is contract work, or waiting tables you will need to anticipate some of that money going to the government. When you get cash in hand, it’s so easy to spend; therefore, my parents would make sure I went to the bank immediately and put some in checking and some in savings.
Now that I have shared my top 3 things my parents told me, here are Matt’s:
- Set Goals – define clearly what you are working towards. Whether it is to one day buy your first car, help pay way through college, or simply get an iPhone or new set of clothes, put it on paper. Then decide how much of your paycheck you want to help reach towards these goals. Either establish different envelopes or bank accounts which are labeled/earmarked for these goals. These are the habits you’ll need to develop in your beginning steps towards a lifelong financial journey. Now, if you’re not happy with how fast you can reach towards these goals, you just have to simply make more money. (I saw his mind begin to expand…)
- Meet Your Uncle FICA - “Pop, I got ripped off! My check says I made this at the top of my paycheck but they paid me only this amount at the bottom!”, as he pointed out. “Son, meet your Uncle FICA! You probably have another ‘F-word’ in mind right now but you should be thinking of another word that begins with ‘T’”, I said. Hello TAXES! There “gross pay” and then there’s “net pay”. As an employee, the first thing that gets taken from your paycheck is federal/state income taxes. That will never change for the rest of your life. However, as a business owner, the LAST thing that gets taken from your income is taxes. Decide what situation you’d rather be in later on in your life. (Again, his mind continuing to expand…actually hearing a hamster wheel begin turning…)
- Align with a Mentor – If you want to get to the next level and make the most of what you have, you need to earn the time with someone who has been there, done that. It will greatly shorten your learning curve into a success curve. They’ll get you to see things that aren’t quite obvious to you yet and save your a lot of time, money and grief. If you don’t like learning the hard way, a mentor will definitely guide towards the easy way. But don’t waste their time by not DOING what they share with you, or else, you’ll have to find another mentor.
Number 3 is my favorite one. My parents pretty much explained the other two, but they didn’t tell me to find a mentor. I think because my father felt he was the mentor. However, someone outside of the family would have been much more helpful. It’s what I had to realize I needed in my older age. To this day, I have yet to have the kind of mentor that he explained to his son and would love one. Sometimes, it takes guidance from someone wise and experienced to stay on the right track to success. Even at 31, with much experience and gained wisdom, I need someone to keep me in line as I still haven’t made it to the success I imagine. I know I would be much more successful today if I had a mentor from my teens to my 20′s.
So now I am going to pass the challenge on…
What 3 things do you remember your parents teaching you when you got your first paycheck?
Click the title to see Matt’s full story: 3 Things I Taught My Teenage Son When He Got His First Paycheck
Have you seen this kid? CJ Senter? I just read an article about him and went to his website….he is 10 years old and a personal trainer who makes workout DVDs for kids. http://www.workoutkid.com/ I think it's awesome, I am curious to watch his development to see how his parents manage his success. I wish him the best!
I have to say, I wasn't taught how to be good with money as a kid. Nor as an adult. I have had to find my way into it. But i KNOW I want my son (11 yrs old now) to have a good head start with money management. Never too young to be responsible with that. I know he wants this and that right now, but he already knows not to buy anything i didn't allow him to when I give him money. He knows that at least.
This is going to come in handy BIG TIME, Marika!!
Is he doing anything for money now. Chores? Moving Lawns? etc
Yes my parents told me to have a emergency money too. I didn't add that cause I wanted to keep it down to only 3 but that's great advice too Frank! Life happened for me too… like boyfriends and friends that needed money …. and my parents told me to late that lending means giving. LOL
Great tips Marika! And so well written as usual. My parents always drilled into us to "save for a rainy day". I started out doing that, but life happens and savings had to be dipped into. Another great tip for younger adults who are starting a household and taking on a mortgage is to make weekly not monthly payments. They will save a huge amount in interest and pay the mortgage off years ahead, and yet still not have to pay any more each month. Just paying in advance of the month-end makes a huge difference.
not right now… In the summer, I'm going to have him do that (mow lawns). Even if it's just mine.
Awww…. yeah he should start with YOURS first in my opinion. You want him to do something he likes to do or at least wants to for other people so he does a good job.
I love this article Marika! Unfortunately, I wasn't taught how to be a hustler by my parents or how to manage money. I just always had it in me. When I went to college for my degree, it was always Plan B, and Plan A was to own my own business. A person I went to high school with actually brought out my true hustler skills with his experience, inspiration, and motivation. I was a single mother and everyone in my family was telling me to get a "Real" job. That's all they knew how to do. I had to take money management workshops and courses as an adult. I'm passing it on to my kids now. It's important to take them to the bank at an early age and open up a savings account and have the bank associates to teach them how to balance a checkbook. When my daughter use to get money, she wanted to spend it all right away, but now she puts money away and only get the things she really wants.
Awww thank you girl. Knowing this about you kind of proves that some people are just born this way. I mean you are like super human. And I love that now you have children you know what to teach them and you do. I bet along the way you have found what works thru trial and error. I believe that's how you become the best teacher. See and another thing to be added to the list is to have a Plan A and a Plan B… which is really a great idea. Because if one doesn't work then you don't hate yourself and feel like there is nothing left to do in the process.
I think it's great you went with your mind cause I never did until I realized how unhappy I was in the major I was studying in college. Even then I didn't have the courage to do what I knew + what made me happy. That's another tip to share to your kids (generally speaking).
I am glad your mother doesn't do that anymore. I had very frugal parents growing up … up until my dad started making A LOT of money in which I think he went a little overboard with it but now he has learned to live more below his means just in case something happens which is what he taught me in the first place growing up.
Although (and unfortunately) the term "hustler" has a negative connotation; of course I believe all wise and successful people know exactly how important it is- especially these days to have somewhat of a hustler mindset, at the very least a person can AVOID being scammed financially if they do! Lol, personally my mentor and my grandmothers have been most influential in my life because they always showedme the importance behind being a go-getter and making the most of my talents, and of course educating myself. Growing up in NYC with a mom working @ Chase Manhattan, I loved being around businessmen and keeping track of my allowance in a check register, however my parents like many middleclass babyboomers worked so hard they arent used to dealing with innovative ways to pass on financial advice to their kids, luckily thanks to technology and crazy economic environments (plus creative genes) Im grateful to say that my many years working under so many hats has now brought us all to the point where we really can/want to and I think ought to pursue our passion and use all our efforts towards building a family business and ultimately our legacy… that I feel will be the most important idea families can share with each other :} and having good credit is definitely important
Yes you are right the word does; however, it can be used in a positive light too. I like to go against society. ha
You are so fortunate to have a mentor. How did you find one? Anyway, both of my parents are workaholics… my father more than my mother…. but they both do what they need morally and ethically to make sure there is food on the table…. because I grew up in that kind of household I had no choice but to be a "hustler".
Oh btw… I have to send you this article on why our parents are no longer called babyboomers. That's what what they are anymore. I think you would find it very interesting so I will post it on your wall.
Yes having good credit is important. A lesson I learned is to never share credit with a boyfriend you are living with to help him get things because he doesn't have ANY credit.
I guess when you have children you will teach them to be a beast cause I have watched you over the years and you have shown to be hardcore and I love it.