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Saturday, January 12, 2008

Parents and personal finance

I think my parents are finally getting serious about their finances. It's long overdue (they are in their late 40s) but better now than in 10 or 20 more years. Or never.

To clarify, my mom has always been relatively good with her money. She was the one who paid the bills and took us clothes shopping. She rarely bought anything for herself (and conveniently, shared our clothes when we were in high school! The perks of being a petite woman with three girls!) and always worked hard. She has been good with money, but doesn't seem to branch too far from the basics of budgeting and getting things paid.

My dad has always been awful with money. He grew up in a very poor family and didn't learn anything about how to manage money. Things went alright for them when he worked for someone else. He'd get paid, turn the check into my mom, and she took care of the magic. It all fell apart when he went to business for himself. He worked hard enough, but it takes more than that to run a business. Let's just say that from the time I was about 16 until earlier this year, their finances were a bit of a disaster.

These days, my parents are doing something pretty neat since all of us kids are off on our own. My mom does travel nursing, and my dad (an electrician) finds work wherever they go. They take 3-6 month assignments in various cities in the US (mostly California, lately) and work. They are too young to retire, but they are able to see more of the world than they ever have before. I'm very proud that they took the initiative to do this, and they seem to really love it.

Anyway, for the first time in my life, my dad seems to be exceptionally careful with money. They have finally canceled their home phone line (they are there less than 6 months a year anyway!) and he announced to me that he was happy that that was saving him $30 a month. He also realized he was being charged a fee for his checking account, and promptly switched to a different version. Since they are traveling a lot, it doesn't make a lot of sense to buy "stuff", so they don't purchase a whole lot anymore. He also has been pestering me to get off of his car insurance plan once I get settled into Los Angeles. That'll save him several hundred dollars!

As much as I have loved having my car insurance paid, it is really a huge relief for me to hear them talking about saving money. Even if it costs me.

He's still not perfect--for Christmas he bought some overpriced remote controlled helicopters for a couple of his nephews, even though they are so obviously too young to be able to fly them. I bet they are broken by now. Still, he's made huge headway.

I've never read Dave Ramsey's "Total Money Makeover" book. I'm not the target audience for it, but my dad seems like he might be. It would be a little awkward for me to give it to him, and he is more of a magazine/newspaper guy than a book guy. Still, I'm going to keep my eyes out for a non-intrusive way to suggest it. I'm excited that they might live in the same city as me for one of their assignments. If my dad is actually receptive to this personal finance stuff, I might be able to sneak in a few other suggestions. Get a high yield savings account! Check your credit report for free! Have you considered a Roth IRA? Can I help?!?! Please!

Does anyone else find themselves more versed in personal finance than their parents? Have you ever made suggestions to them, or is it usually the other way around?

2 comments:

Anonymous said...

My mom's a certified shop-a-holic. It's very difficult to watch. She has declared bankruptcy once and is deeply in debt again. At nearly 70, her working life is ending and she has nothing saved, has a mortgage on a house she once owned free and clear, and owes more in consumer debt than she could ever hope to pay off with her social security income. I do my best to stay out of her financial mess but it's not always easy. Soon, she'll sell her house and go live with my sister. We're hoping to invest any capital she has left after the sale and paying off her credit cards. We're also trying to convince her that if my sister is paying all the bills, she should put away some of her SS check each month. We all know that chances are some day she'll be a financial burden that we'll have to find a way to share. I love her but hate her irresponsible and self-destructive financial behavior.

E.C. said...

My parents are really good at the basics: they spend less than they earn, paid off their thirty year mortgage in less than fifteen years, have no consumer debt, and contribute the maximum allowed to my father's 401k. However, they aren't tremendously savvy about investment options so I was the one who prodded my mother to start an IRA and to do something with their liquid savings other than keep it in a checking account earning 0.6% interest.

It does create a somewhat weird family dynamic at times. I'm doing my best to avoid seeming pushy or judgmental. Fortunately, my mother is fairly receptive to suggestions; she's been worrying more about retirement savings since we had to file for Medicaid for my grandfather after his care exhausted my grandparent's savings.

Saturday, January 12, 2008

Parents and personal finance

I think my parents are finally getting serious about their finances. It's long overdue (they are in their late 40s) but better now than in 10 or 20 more years. Or never.

To clarify, my mom has always been relatively good with her money. She was the one who paid the bills and took us clothes shopping. She rarely bought anything for herself (and conveniently, shared our clothes when we were in high school! The perks of being a petite woman with three girls!) and always worked hard. She has been good with money, but doesn't seem to branch too far from the basics of budgeting and getting things paid.

My dad has always been awful with money. He grew up in a very poor family and didn't learn anything about how to manage money. Things went alright for them when he worked for someone else. He'd get paid, turn the check into my mom, and she took care of the magic. It all fell apart when he went to business for himself. He worked hard enough, but it takes more than that to run a business. Let's just say that from the time I was about 16 until earlier this year, their finances were a bit of a disaster.

These days, my parents are doing something pretty neat since all of us kids are off on our own. My mom does travel nursing, and my dad (an electrician) finds work wherever they go. They take 3-6 month assignments in various cities in the US (mostly California, lately) and work. They are too young to retire, but they are able to see more of the world than they ever have before. I'm very proud that they took the initiative to do this, and they seem to really love it.

Anyway, for the first time in my life, my dad seems to be exceptionally careful with money. They have finally canceled their home phone line (they are there less than 6 months a year anyway!) and he announced to me that he was happy that that was saving him $30 a month. He also realized he was being charged a fee for his checking account, and promptly switched to a different version. Since they are traveling a lot, it doesn't make a lot of sense to buy "stuff", so they don't purchase a whole lot anymore. He also has been pestering me to get off of his car insurance plan once I get settled into Los Angeles. That'll save him several hundred dollars!

As much as I have loved having my car insurance paid, it is really a huge relief for me to hear them talking about saving money. Even if it costs me.

He's still not perfect--for Christmas he bought some overpriced remote controlled helicopters for a couple of his nephews, even though they are so obviously too young to be able to fly them. I bet they are broken by now. Still, he's made huge headway.

I've never read Dave Ramsey's "Total Money Makeover" book. I'm not the target audience for it, but my dad seems like he might be. It would be a little awkward for me to give it to him, and he is more of a magazine/newspaper guy than a book guy. Still, I'm going to keep my eyes out for a non-intrusive way to suggest it. I'm excited that they might live in the same city as me for one of their assignments. If my dad is actually receptive to this personal finance stuff, I might be able to sneak in a few other suggestions. Get a high yield savings account! Check your credit report for free! Have you considered a Roth IRA? Can I help?!?! Please!

Does anyone else find themselves more versed in personal finance than their parents? Have you ever made suggestions to them, or is it usually the other way around?

2 comments:

Anonymous said...

My mom's a certified shop-a-holic. It's very difficult to watch. She has declared bankruptcy once and is deeply in debt again. At nearly 70, her working life is ending and she has nothing saved, has a mortgage on a house she once owned free and clear, and owes more in consumer debt than she could ever hope to pay off with her social security income. I do my best to stay out of her financial mess but it's not always easy. Soon, she'll sell her house and go live with my sister. We're hoping to invest any capital she has left after the sale and paying off her credit cards. We're also trying to convince her that if my sister is paying all the bills, she should put away some of her SS check each month. We all know that chances are some day she'll be a financial burden that we'll have to find a way to share. I love her but hate her irresponsible and self-destructive financial behavior.

E.C. said...

My parents are really good at the basics: they spend less than they earn, paid off their thirty year mortgage in less than fifteen years, have no consumer debt, and contribute the maximum allowed to my father's 401k. However, they aren't tremendously savvy about investment options so I was the one who prodded my mother to start an IRA and to do something with their liquid savings other than keep it in a checking account earning 0.6% interest.

It does create a somewhat weird family dynamic at times. I'm doing my best to avoid seeming pushy or judgmental. Fortunately, my mother is fairly receptive to suggestions; she's been worrying more about retirement savings since we had to file for Medicaid for my grandfather after his care exhausted my grandparent's savings.

Saturday, January 12, 2008

Parents and personal finance

I think my parents are finally getting serious about their finances. It's long overdue (they are in their late 40s) but better now than in 10 or 20 more years. Or never.

To clarify, my mom has always been relatively good with her money. She was the one who paid the bills and took us clothes shopping. She rarely bought anything for herself (and conveniently, shared our clothes when we were in high school! The perks of being a petite woman with three girls!) and always worked hard. She has been good with money, but doesn't seem to branch too far from the basics of budgeting and getting things paid.

My dad has always been awful with money. He grew up in a very poor family and didn't learn anything about how to manage money. Things went alright for them when he worked for someone else. He'd get paid, turn the check into my mom, and she took care of the magic. It all fell apart when he went to business for himself. He worked hard enough, but it takes more than that to run a business. Let's just say that from the time I was about 16 until earlier this year, their finances were a bit of a disaster.

These days, my parents are doing something pretty neat since all of us kids are off on our own. My mom does travel nursing, and my dad (an electrician) finds work wherever they go. They take 3-6 month assignments in various cities in the US (mostly California, lately) and work. They are too young to retire, but they are able to see more of the world than they ever have before. I'm very proud that they took the initiative to do this, and they seem to really love it.

Anyway, for the first time in my life, my dad seems to be exceptionally careful with money. They have finally canceled their home phone line (they are there less than 6 months a year anyway!) and he announced to me that he was happy that that was saving him $30 a month. He also realized he was being charged a fee for his checking account, and promptly switched to a different version. Since they are traveling a lot, it doesn't make a lot of sense to buy "stuff", so they don't purchase a whole lot anymore. He also has been pestering me to get off of his car insurance plan once I get settled into Los Angeles. That'll save him several hundred dollars!

As much as I have loved having my car insurance paid, it is really a huge relief for me to hear them talking about saving money. Even if it costs me.

He's still not perfect--for Christmas he bought some overpriced remote controlled helicopters for a couple of his nephews, even though they are so obviously too young to be able to fly them. I bet they are broken by now. Still, he's made huge headway.

I've never read Dave Ramsey's "Total Money Makeover" book. I'm not the target audience for it, but my dad seems like he might be. It would be a little awkward for me to give it to him, and he is more of a magazine/newspaper guy than a book guy. Still, I'm going to keep my eyes out for a non-intrusive way to suggest it. I'm excited that they might live in the same city as me for one of their assignments. If my dad is actually receptive to this personal finance stuff, I might be able to sneak in a few other suggestions. Get a high yield savings account! Check your credit report for free! Have you considered a Roth IRA? Can I help?!?! Please!

Does anyone else find themselves more versed in personal finance than their parents? Have you ever made suggestions to them, or is it usually the other way around?

2 comments:

Anonymous said...

My mom's a certified shop-a-holic. It's very difficult to watch. She has declared bankruptcy once and is deeply in debt again. At nearly 70, her working life is ending and she has nothing saved, has a mortgage on a house she once owned free and clear, and owes more in consumer debt than she could ever hope to pay off with her social security income. I do my best to stay out of her financial mess but it's not always easy. Soon, she'll sell her house and go live with my sister. We're hoping to invest any capital she has left after the sale and paying off her credit cards. We're also trying to convince her that if my sister is paying all the bills, she should put away some of her SS check each month. We all know that chances are some day she'll be a financial burden that we'll have to find a way to share. I love her but hate her irresponsible and self-destructive financial behavior.

E.C. said...

My parents are really good at the basics: they spend less than they earn, paid off their thirty year mortgage in less than fifteen years, have no consumer debt, and contribute the maximum allowed to my father's 401k. However, they aren't tremendously savvy about investment options so I was the one who prodded my mother to start an IRA and to do something with their liquid savings other than keep it in a checking account earning 0.6% interest.

It does create a somewhat weird family dynamic at times. I'm doing my best to avoid seeming pushy or judgmental. Fortunately, my mother is fairly receptive to suggestions; she's been worrying more about retirement savings since we had to file for Medicaid for my grandfather after his care exhausted my grandparent's savings.

Saturday, January 12, 2008

Parents and personal finance

I think my parents are finally getting serious about their finances. It's long overdue (they are in their late 40s) but better now than in 10 or 20 more years. Or never.

To clarify, my mom has always been relatively good with her money. She was the one who paid the bills and took us clothes shopping. She rarely bought anything for herself (and conveniently, shared our clothes when we were in high school! The perks of being a petite woman with three girls!) and always worked hard. She has been good with money, but doesn't seem to branch too far from the basics of budgeting and getting things paid.

My dad has always been awful with money. He grew up in a very poor family and didn't learn anything about how to manage money. Things went alright for them when he worked for someone else. He'd get paid, turn the check into my mom, and she took care of the magic. It all fell apart when he went to business for himself. He worked hard enough, but it takes more than that to run a business. Let's just say that from the time I was about 16 until earlier this year, their finances were a bit of a disaster.

These days, my parents are doing something pretty neat since all of us kids are off on our own. My mom does travel nursing, and my dad (an electrician) finds work wherever they go. They take 3-6 month assignments in various cities in the US (mostly California, lately) and work. They are too young to retire, but they are able to see more of the world than they ever have before. I'm very proud that they took the initiative to do this, and they seem to really love it.

Anyway, for the first time in my life, my dad seems to be exceptionally careful with money. They have finally canceled their home phone line (they are there less than 6 months a year anyway!) and he announced to me that he was happy that that was saving him $30 a month. He also realized he was being charged a fee for his checking account, and promptly switched to a different version. Since they are traveling a lot, it doesn't make a lot of sense to buy "stuff", so they don't purchase a whole lot anymore. He also has been pestering me to get off of his car insurance plan once I get settled into Los Angeles. That'll save him several hundred dollars!

As much as I have loved having my car insurance paid, it is really a huge relief for me to hear them talking about saving money. Even if it costs me.

He's still not perfect--for Christmas he bought some overpriced remote controlled helicopters for a couple of his nephews, even though they are so obviously too young to be able to fly them. I bet they are broken by now. Still, he's made huge headway.

I've never read Dave Ramsey's "Total Money Makeover" book. I'm not the target audience for it, but my dad seems like he might be. It would be a little awkward for me to give it to him, and he is more of a magazine/newspaper guy than a book guy. Still, I'm going to keep my eyes out for a non-intrusive way to suggest it. I'm excited that they might live in the same city as me for one of their assignments. If my dad is actually receptive to this personal finance stuff, I might be able to sneak in a few other suggestions. Get a high yield savings account! Check your credit report for free! Have you considered a Roth IRA? Can I help?!?! Please!

Does anyone else find themselves more versed in personal finance than their parents? Have you ever made suggestions to them, or is it usually the other way around?

2 comments:

Anonymous said...

My mom's a certified shop-a-holic. It's very difficult to watch. She has declared bankruptcy once and is deeply in debt again. At nearly 70, her working life is ending and she has nothing saved, has a mortgage on a house she once owned free and clear, and owes more in consumer debt than she could ever hope to pay off with her social security income. I do my best to stay out of her financial mess but it's not always easy. Soon, she'll sell her house and go live with my sister. We're hoping to invest any capital she has left after the sale and paying off her credit cards. We're also trying to convince her that if my sister is paying all the bills, she should put away some of her SS check each month. We all know that chances are some day she'll be a financial burden that we'll have to find a way to share. I love her but hate her irresponsible and self-destructive financial behavior.


E.C. said...

My parents are really good at the basics: they spend less than they earn, paid off their thirty year mortgage in less than fifteen years, have no consumer debt, and contribute the maximum allowed to my father's 401k. However, they aren't tremendously savvy about investment options so I was the one who prodded my mother to start an IRA and to do something with their liquid savings other than keep it in a checking account earning 0.6% interest.

It does create a somewhat weird family dynamic at times. I'm doing my best to avoid seeming pushy or judgmental. Fortunately, my mother is fairly receptive to suggestions; she's been worrying more about retirement savings since we had to file for Medicaid for my grandfather after his care exhausted my grandparent's savings.