Hey internet: do you remember millennials? Many of us have done our lattes and leisurely brunches to become parents with jobs, car loans, and maybe even a mortgage.
On our way to growing up, we have experienced two global crises – a recession and a pandemic. Many of us still carry mountains of student debt. Those years have shaped our approach to money and now we are teaching our children what we know.
Here are the money lessons five millennial parents across the country want to teach their children (answers have been edited for length and clarity):
“NEVER THINK YOUR CHILD IS TOO YOUNG TO LEARN”
LAURYNN VAUGHN, 37, FROM KISSIMMEE, FLORIDA, IS A MOTHER OF TWO DAUGHTERS, AGED 5 AND 4 YEARS. SHE LEADS A DAILY OPERATOR THAT CLOSED DURING THE Pandemic BUT HAS REOPENED. SHE IS ALSO AN ACTIVE VOLUNTEER.
“I don’t want to pass on that I wasn’t taught money. I think the sooner you start teaching your kids the better. I’m already teaching them that there are pretty much three principles to money. Number 1 is giving. The second is saving. And the third is what you have left is what you can enjoy. My principles are a little different, there are really four: I pay bills, then I give, I save and have money left over to enjoy. It is better to teach them at their level than not to teach them because you are waiting for them to reach a level. ”
“It’s better to be a working student and leave college with a lot less debt”
MAE WAUGH BARRIOS, 34, FROM HOLLISTON, MASSACHUSETTS, IS THE MOTHER OF THREE CHILDREN, 10, 4 AND 2 YEARS OLD. SHE’S TEACHING TRAINER FOR THE MIDDLE SCHOOL AND IS UNPAID TO TAKE CARE OF HER CHILDREN DURING THE Pandemic. HER HUSBAND, FRANCISCO, RUNS A LANDSCAPE SHOP. She has $ 20,000 in student loans to pay off.
“That was the biggest mistake I’ve made in my entire life. Everyone said go to the college you want just take the loans. Nobody told me the real aftermath of student loans. My husband didn’t go to college. Our plan is to open a college savings account for (our children) when I go back to work. It’s (also) better to be a student trainee and leave college with much less debt. My husband and I made sure we don’t get so bogged down in debt that we cannot survive. We talk a lot at the dinner table about being rich and poor. When you are rich, your money works for you. When you are poor, you work for money. ”
‘MAKING EXPERIENCES MORE’
STEFFA MANTILLA, 36, FROM HOUSTON has a 4-YEAR-OLD SON. SHE IS A CERTIFIED TEACHER IN FINANCIAL EDUCATION, FORMER ZOOKEPER AND FOUNDER OF THE PERSONAL FINANCE WEBSITE MONEY TAMER.
“In our household we place more value on ‘experiences’ than on ‘things’. (For my son’s birthday) instead of buying tons of gifts, we buy a gift and then tickets to the children’s museum or the local zoo. We encourage relatives to give away experiences that they can have together. This puts the focus on family and friends and at the same time teaches him to live with less stuff. ”
“DON’T BE AFRAID TO INVEST”
ALAN LAFRANCE, 37, FROM AUSTIN, TEXAS, HAS A 5-YEAR-OLD SON. HE WORKS IN DIGITAL MARKETING AND HIS WIFE MELADEE IS A RESPIRATORY THERAPIST.
“You could pay for a car in cash, but you could (get) a loan for that car and borrow and invest that capital. If you can make more with this money, you will be in a much better position overall. At some point you can’t just throw everything away, you have to start making the money work for you. As parents, we want our children to save, but in reality you can do too much and really miss out on a lot of opportunities. ”
“BUILDING A DIFFERENT STREAM OF INCOME”
JERNESSA JONES, 39, FROM FLORENCE, ALABAMA, IS A MOTHER OF A 6-YEAR-OLD SON AND IS AN ACCREDITED FINANCIAL ADVISER AT OPERATION HOPE, A NON-PROFIT FOR FINANCIAL SKILLS. DURING THE pandemic, she completed an MBA program, bought a home, and started a fashion accessories store.
“My mom and dad didn’t own a business and weren’t home owners. I was looking for homes last year because home ownership is the first step in building intergenerational wealth. I realized I could afford the mortgages on some of the houses I was looking at, but I would probably be poor on houses. I decided to take a step back and see what I could do to build another stream of income. Entrepreneurship was another thing I could teach my son. He was there from start to finish, even when I opened my business account. “
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This column was provided to The Associated Press by the personal finance website NerdWallet. Amrita Jayakumar is a writer at NerdWallet. Email: ajayakumar@nerdwallet.com. Twitter: @ajbombay.
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NerdWallet: How to Save Money https://bit.ly/nerdwallet-17-tips-money
Amrita Jayakumar of Nerdwallet, The Associated Press
