If you cannot get out of the debt hole, suffer from overspending and the impossibility of saving, refer to the sources of your financial history and analyze what monetary mistakes your parents made. Thinking traps must not be allowed to adversely affect one’s own well-being. Change your current financial approach and adjust your views on old principles.
1. Remember how parents treated money
Psychologists say that you will manage the money in the same way as your parents managed it. If the child sees that the family cares about the budget, then becoming an adult, he will similarly control the money. If parents accumulate debts, spend more than they earn and try to live up to rich neighbors, then children will get the same way of thinking..
The way you relate to money is triggered by emotions that were associated with them in childhood. If parents often argued about money, then the child will associate it with anger and negativity. This is why childhood can be seen as the key to changing financial habits..
But there is a downside. People either accept the story of a family’s relationship with finances, or they rebel and protest. When parents are too thrifty, the child can take the opposite path and surround himself with expensive gifts.
2. Remember what parents talked about money
In childhood, we lay and develop in ourselves financial behavioral strategies that shape the way we handle earnings. Some people grow up with the understanding that money is very bad, and a rich person is a greedy and greedy thug.
In the United States, an entrepreneur is a hero. A man who was able to get rich thanks to his mind and efforts, benefiting people. In Russia, the businessman has a different attitude. Just think what your parents say about it..
Family money advice often remains relevant to us in the present. Many of these lessons were illiterate, outdated, or even dangerous. They begin to harm in different areas of life..
3. Inheritance is not an indicator of financial literacy
If you have never noticed how your parents spent money and there was always enough of them, then this is also a source of financial difficulties. Not all parents teach children to value money and this is a serious problem for wealthy families..
Research has shown that those who receive an inheritance lose it over three generations. When a child takes a major fortune, this does not mean that he knows how to manage it. Children who grow up in abundance may be lulled by the feeling that they have an unlimited amount of funds. This leads to cost overruns, debts and financial problems in adulthood..
4. Pay attention to the years of formation
All human beliefs about the world are created at the age of 7 to 11 years. What you observe further simply strengthens the faith. If you remember how parents constantly talked about the fact that they will never have enough money, then you will have a similar attitude towards yourself and your family.
This trend leads to fear of financial risks. A person does not invest and does not seek the opportunity to make money work, since there is a fear inside that money will one day run out. To overcome this, try investing in low risk assets. Make a bank deposit or consider buying bonds. This will help to overcome doubts and see real results. Gradually, this method will arouse the appetite for investing in more complex financial market instruments and teach them to understand.
Similar articles
- Where does a poor person think from and how to get rid of him?
If you listen to experts and political scientists, they will tell you that poverty is a very complex social problem with many moving…
- Who are the millennials and why are they freer than their parents
In the early 90s, American sociologists Neil Howe and William Strauss analyzed history and described several groups of people born in the same space….
- Money in a relationship – 7 signs that a partner is financially unstable
When you start dating someone, questions about money in a relationship and security do not come to the fore. But gradually, the closer you find out…
How can we break the cycle of our parents’ money mistakes and ensure a better financial future for ourselves?