People who were never taught the value of money growing up usually display these 8 habits (without realizing it)

If your parents gave you a dollar and you immediately spent it on candy, you might be familiar with the concept of not valuing money.

If they never sat you down to explain the importance of saving, then you probably grew up without having a clear understanding of its role in your life.

And guess what? It shows.

You may not notice it, but people who were never taught the value of money growing up usually display these 8 distinct habits.

Some are subtle, some are glaringly obvious, but all offer insight into a person’s financial mindset.

Let’s dive into them, shall we? After all, understanding our habits is the first step towards making better financial decisions – for ourselves and our businesses.

1) Impulsive purchases

You know that feeling when you walk into a store and something shiny catches your eye? You’ve got to have it, right? Well, that’s a classic sign of not understanding the value of money.

For people who weren’t taught the value of money growing up, impulsive buying is almost second nature. They see something they like, they buy it – no second thoughts, no weighing the pros and cons.

The problem is, this habit often leads to financial instability. Before they know it, their bank account is running on fumes, and they’re left wondering where all their money went.

But hey, at least they’ve got that shiny new thing… right?

This behavior isn’t just about spending money without thinking. It’s a reflection of a deeper issue: the inability to distinguish between wants and needs.

And while it’s not an easy habit to break, recognizing it is the first step toward financial literacy.

2) Struggling to save

Money always seemed to slip through my fingers like sand. I would get my paycheck, pay the bills and before I knew it, I was left with next to nothing.

Saving? It felt like a luxury I could never afford.

I often found myself dreaming about the things I could do if only I had a little extra money tucked away.

But every time I tried to save, something would always come up – an unexpected bill, a friend’s birthday, a sale that was just too good to pass up.

It wasn’t until I started tracking my expenses that I realized just how much money I was wasting on things I didn’t need.

The daily coffee runs, the take-out meals because I was too tired to cook, the new gadget that promised to make my life easier… it all added up.

This struggle to save is common among people who weren’t taught the value of money growing up. We tend to live in the moment, without thinking about the future.

But trust me, learning to save is one of the most rewarding habits you can develop. It gives you a sense of control over your money and opens up opportunities that wouldn’t be possible otherwise.

3) Frequent use of credit

Credit cards can be a great tool when used responsibly. They can help build credit history, earn rewards, and provide a safety net in case of emergencies.

However, they can also be a slippery slope leading to debt if not managed properly.

People who were never taught the value of money growing up often lean heavily on their credit cards. They see it as free money and frequently max them out without considering the consequences.

Here’s something that might surprise you: According to a report by Experian, the average American has about $6,194 in credit card debt.

This reliance on credit not only leads to accumulating debt but also results in paying high amounts of interest over time.

Understanding how credit works and using it wisely is crucial for financial health. It’s not about completely avoiding it, but rather about learning to manage it effectively.

4) Ignoring financial education

Let’s face it, financial literacy isn’t exactly a thrilling topic for most people. It’s often seen as complex, boring, and irrelevant – until it’s too late.

Many people who didn’t learn the value of money in their formative years tend to ignore financial education later in life as well. They’d rather deal with the consequences than take the time to understand concepts like interest rates, investments, and tax planning.

The problem with this approach is that it leaves them vulnerable to financial pitfalls. Without a basic understanding of personal finance, it’s easy to make costly mistakes that could have been avoided.

So, no matter how uninteresting it may seem at first, taking the time to educate yourself about money matters is one of the best investments you can make.

5) Living paycheck to paycheck

I remember the cycle all too well. As soon as I got my paycheck, I would pay off my bills, treat myself to something nice, and then spend the rest on daily expenses.

By the end of the month, I would be eagerly waiting for my next paycheck. I was living paycheck to paycheck, and I didn’t even realize it.

Living this way has a certain thrill to it – you’re always on the edge, and there’s a certain satisfaction in making ends meet every month. But it’s also stressful. One unexpected expense can throw everything off balance.

Breaking free from this cycle isn’t easy, trust me, I know. It requires planning, discipline, and most importantly, a shift in mindset.

But once you do, you’ll find yourself in control of your finances rather than them controlling you.

6) Generosity to a fault

When it comes to money, being generous is usually seen as a virtue. After all, what’s wrong with wanting to help others or make them happy?

But there’s a fine line between being generous and being careless with your money.

Many people who weren’t taught the value of money growing up tend to be overly generous. They’ll pick up the tab for friends, buy expensive gifts, or lend money without considering their own financial situation.

In a 2017 study by the American Psychological Association, it was found that people give away more money when they’re feeling socially connected to others.

But while this generosity might earn them appreciation in the short term, it can lead to financial stress in the long run.

Being generous is commendable, but it’s important to balance it with financial responsibility. Remember, you can’t pour from an empty cup.

7) Neglecting retirement savings

Retirement can seem like a distant reality, especially when you’re young. But the sooner you start saving, the better off you’ll be in your golden years.

Unfortunately, people who didn’t learn the value of money as kids often neglect their retirement savings. They focus on their immediate needs and wants, ignoring the fact that one day they’ll need a substantial nest egg to maintain their lifestyle.

According to a report from the Federal Reserve, as many as 25% of American adults have no retirement savings at all. This lack of foresight can lead to financial stress and uncertainty in later years.

Remember, it’s never too early to start saving for retirement. Even small contributions can grow significantly over time, thanks to the power of compound interest.

8) Lack of financial goals

Without a destination in mind, it’s easy to lose your way. This is as true for life as it is for finances.

Those who didn’t learn the value of money growing up often lack clear financial goals.

They might have a vague idea of wanting to be “rich” or “financially secure”, but without specific, measurable, attainable, relevant, and time-bound (SMART) goals, these desires remain just that – desires.

Setting financial goals gives you something to strive for. It offers you a roadmap to follow and makes managing money a lot less daunting.

Whether it’s saving for a house, paying off debt, or building an emergency fund, having financial goals can be the difference between financial success and failure.

Understanding the value of money

Recognizing these habits is the first step towards gaining a better understanding of our relationship with money.

Money, in itself, is neutral. It’s simply a tool that can bring comfort, create opportunities, and open doors.

But like any tool, its effectiveness depends on how well we use it.

John D. Rockefeller once said, “I never would have been able to tithe the first million dollars I ever made if I had not tithed my first salary, which was $1.50 per week.”

This speaks volumes about the importance of understanding the value of money, no matter how much or little we have.

If we grew up without learning this important lesson, it’s never too late to start. By acknowledging these habits and taking steps to address them, we can change our financial trajectory and build a more secure future.

After all, money is not just about dollars and cents. It’s about freedom, choices, and ultimately, the kind of life we want to live.