Whether we realize it or not, the way that our parents tended to their financial health was likely passed down to us, alongside Dad’s height or Mom’s sense of humour. This can happen in a variety of different ways, but the most common examples we see of this are:
• Some people were never taught about money:
Some parents are raised in households where there aren’t any open conversations about money; so it comes as no surprise that certain skills haven’t been passed down over the generations. This can result in a general lack of common money management skills.
• Some people were spoiled as children:
In this situation, unrealistic expectations can arise when it comes to lifestyle vs. finances. If a child grows up given whatever they desire, a sense of entitlement may persist into adulthood, causing a propensity to overspend and create large debt (if income does not coincide with lifestyle choices).
• Some people had overly frugal parents:
In these cases, we can see an overt desire to overspend. This may be a compensation of sorts, especially if a person felt denied, or regularly deprived, as a child.
If you feel like you may fall into one of these categories and are interested in discovering more about what a healthier financial situation could look like for you and/or your loved ones, reach out to one of our advisors today.
Spire Advisors of Assante Capital Management Ltd.
www.spireadvisors.ca
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