We should all be grateful for this.
the main points
- The right guidelines can help you avoid financial mistakes.
- Here are some tips that I’m so grateful my parents were kind enough to share.
- I’m glad I learned early on the importance of emergency savings, not willingly charging the credit card more than I can pay off, and always having health insurance.
Managing my finances is something that came naturally to me – but only because my parents gave me a solid foundation for it. Over the years, I’ve avoided some potentially bad situations by using the knowledge my parents instilled in me. And I’m especially grateful for these specific financial tips that really apply globally.
1. Always have emergency savings on hand
Growing up, my parents didn’t make a lot of money. We’ve mostly stayed in rather than vacationed and almost never went out to eat. But my parents made sure to keep emergency savings, always explaining how important it was for me to do the same.
As such, I have contributed money to my country saving account About 12 years ago. This is when I started working as a babysitter and earning (albeit modest) income from my own country.
Over the years, I have added to my emergency fund As I was able to. And that money has certainly saved me on more than one occasion as an adult.
My home has two air conditioning systems, for example, that have both stopped working within the past two years, leaving me with over $15,000 in replacement costs. Thanks to my savings account, I didn’t have to run up debt to cover those expenses.
2. Don’t willingly collect a credit card balance that you can’t pay off in full
Some people get stuck with having to cover unplanned bills, such as medical expenses or car repairs, leaving them with nonetheless Credit card balances to move forward. These situations are often unavoidable. But the one thing my parents taught me not to do is Willingly Charged a credit card charge that I couldn’t pay in full.
As a result of this good advice, I’ve never had to forward a credit card balance and pay interest on one. This has saved me a significant amount of money over the years.
3. Don’t underestimate the importance of health insurance
Although I wasn’t a particularly naughty kid, I did find my way to the emergency room on more than one occasion. When I was a little older, I once asked my dad how on earth they managed those emergency bills, and mom explained that she and dad always made sure we had health insurance covered to keep those costs down.
Since then, I’ve always made sure to get health insurance—although there was a period in my life when I tended to fall back on coverage. In my twenties, I took the leap into self-employment and had to pay for health insurance myself. It was really expensive and I almost dropped my coverage at one point.
But then I remembered my parents’ warning and kept me covered. And about a month later, I ended up in the emergency room again. If not for my insurance, I would have racked up thousands of dollars in bills from that visit instead of paying the more manageable $200.
I am grateful that I was raised by parents who were not shy about talking about financial issues. It definitely led me down a more solid path and helped me avoid what could have been some very costly mistakes.
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