I did a search and didn’t see it but I wanted to mention this- generational wealth.
A lot of times, people wonder how someone making an average (not 6 figure) income can afford to have an expensive house and nice cars and etc etc etc.
Sometimes it comes down to generational wealth. It doesn’t mean your parents or grandparents are the part of the 1%. It means there are certain advantages that’s are not always paper money but equate to money or just financial backing in small ways that we don’t always consider.
Is your mom/mother-in-law retired and offering to watch your new baby for free so the new mom can go back to work? That is generational wealth bc the grandparents keeping their grandkids so their kids don’t pay daycare and the new parents can keep being a two income home. Otherwise one parent stays home/becomes one income family or they pay daycare.
Was your college paid for by your parents or grandparents? Again, if your parents made it so you didn’t graduate from college with student loans, then you are automatically ahead of most college graduates financially.
Was your first car given to you? If yes, then you get to know life without a car payments and might get accustomed to it. Or you might have an opportunity to save money to buy a car as opposed to paying auto loan interest rates.
What if your car breaks down and you need money to fix it? Can you ask your parents for the money or an interest free loan?
What if you lose your job? Can you move back in with your parents until you get back on your feet?
Can your parents help you make a down payment on your house? Even a 10k “gift” can make the difference between a nice house and a really nice house combined with a better interest rate that allows you to buy a nicer house.
I think what has alway bothered me is so many people don’t have that safety net of parents who want to help or are able to help. My husband got most of these advantages from his parents and doesn’t even realize how fortunate he is. I, on the other hand, was a single parent before he and I met and some months, I had to do things like pay bills late or not all so I could make sure my child was able to eat and keep our lights on.
So I guess my long winded point is, it’s not always that some people are better with money. They just won the parent lottery and didn’t start their adult lives in the negative trying to dig themselves out.
Sometimes, I think people don’t realize that without parents as safety nets, most of us have to make hard decisions to keep afloat. And then we run up credit cards and and other things we have to learn from.
My goal in life is to not be rich but to be a parent who can provide some of those options for my kids. So I sacrifice now so when it’s time for my kid to get a car or go to college, they don’t have to learn about financial health the hard way.
May 26, 2019 at 04:43PM
