5 bad money lessons your parents taught you

Good intentions aren't always enough. Sometimes, Mom and Dad give you bad financial advice.

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VIDEO ON MSN MONEY

229Comments
Aug 6, 2014 10:56AM
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The problem is not that their advice was bad. The problem is that this country has deteriorated to the point where it no longer works.

Jobs outsourced, unions busted and most of our goods coming from overseas.

I remember a comment made by the father of a friend of mine back in the late 60s.

He said "It took them over 20 years, but the Japanese finally won the war". Yeah I know, not everything comes from Japan, but some of you should get the point he was trying to make..

Aug 8, 2014 8:27AM
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Let's see...Almost on every account, I would have to disagree.


1. Credit Cards/Debt...My parents never, and I mean never put any purchase on deferred payment other than motel rooms. They paid cash for each of their homes...never had a mortgage. They did not care what a credit report was, they never needed it.


2. Always said that you needed to have an education that exceeded the guy next to you, it would never hurt and could only help. Provided you had enough interest to pay for it yourself. Much more opportunities for one with an engineering degree than one trying to get a job driving a garbage truck.


3. Always purchased bank bonds, muni bonds, and very select blue chips and over sixty years never lost and averaged over twice the rate of inflation.


4. Working hard for your money teaches you to hold it closer to your vest (so to speak), pay for your own school, pay all your own bills, and save religiously at least 20% of every dime earned, you will be better off than the "money for 'noth'n" philosophy.


5. If you are not happy about yourself without money, what makes you think that you will be with money? Yes, it might relieve one aspect of stress, but only if you are trying to live outside your means.


Invest in yourself, invest by yourself, and never buy stuff on emotion and you will be better off.

Aug 6, 2014 12:32PM
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Money doesn't buy happiness, if you have the right priorities in life. As long as you want what the

other guy has, you'll never be happy no matter how much you have.

Aug 6, 2014 2:34PM
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"Mom and Dad aren't perfect".  Yeah right MSN.... My mom and dad are perfect in my eyes. They are beautiful, loving, and caring. That's perfect. 
Aug 6, 2014 10:11AM
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Keep voting for Democrats - they say they want to help you so they raise your taxes, drive your jobs overseas with excessive regulation and taxation, send illegal foreign nationals to your town for you to support, insult the heritage and culture of America, teach your kids to be Marxists and homosexuals in school, tell you that the business you busted your hump to build isn't really yours at all, spy on you with the NSA, harass you with the IRS, approve drone strikes on you without due process, print and spend trillions of Dollars to devalue your currency, savings and retirement plan.
They have worked very hard to create tens of millions more impoverished, dependent people who will be solid Democrat voters, and they have taken over the media in order to convince you that the problems they have caused are the fault of Republicans, and you will believe it and vote for some more.
America was once great, free and prosperous, but the Democrats have fixed all that.
Aug 8, 2014 4:47PM
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Mom and Dad were correct, Money can't buy happiness, however, it CAN buy most everything else.
Happiness comes from the heart, no matter how much money you have. That's what I told my kids.

Aug 8, 2014 5:43PM
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1.  Credit cards are for emergencies only:  Yes, if you use them to pay your bills, your debt will surpass your income.

2.  Getting a good education will get you a good job: Yes and No.  Yes, if it's in the right field and you are willing to move and NO, if you got your degree in basket weaving.  Education should mean technical training or trade schools as well as traditional colleges and universities.

3. If you are paying your bills with your credit card, then you won't need to consider investments.

4. If you don't work hard for your money, someone else will come along and replace you.  Take pride in any job you do because you never know who is watching and who will open your next door.

5  Money doesn't buy happiness, truly.  However, you need money to live.


Aug 8, 2014 5:44PM
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Dad: Grow up, work hard. don't get into trouble and you'll do alright for yourself.


Well, as I was growing up I watched my father work hard, buy and pay for a house, a lake cottage, two motor homes, put money in the bank, take vacations, buy new cars and trucks when they wanted to. All without a college education.


Well, I followed dads advice. I've worked hard.


1: I have a house to sleep in before and after I go to work.

2: I can afford a  car so I have something reliable to go to work in.

3: I can fill up the tank with gas so I can get to work.

4: I can buy new clothes for work.

5: I can buy enough food so I have energy to work.

6: I have a cell phone so I can call my wife and tell her I'm working overtime.

7: I pay for medical insurance and the medical bills that flow in so I can be healthy enough to make it to work.


I don't seem to have the money left over like dad did after paying for everything I have to pay for so I can go to work. There just isn't much left over. I find it kind of weird because dad was able to make a pretty good living before all this trickle down thing was happening.

Aug 6, 2014 7:59AM
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Just go on the government dole and become a "taker".  It's what the Democrats want. 
Aug 8, 2014 11:31AM
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The only advice here that I would never take is to keep all your money in the bank and not invest it.  That advice was post depression-era fear coming out of our parents mouths.  If you do not invest your money in the current financial markets, I guarantee you that it will never grow by keeping it solely in the bank. 
Aug 8, 2014 1:51PM
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Children of the Depression had a different mindset. They saw value differently. Some like many parents wanted their kids to have what they could not have and gave too much. These children did not understand value and hard work. As a retired manager I can remember hiring kids and having to play the parent role just to get them to perform. The whole notion of children is different today. Politicians raise the flags and pound their chests for kids around election year. Banks attend college registration weeks. Grabbing for the kids financial servitude knowing the parents will help make the payments. It's a wicked circle. My Bachelor degreed son could not find work. Aggressively looking for two years. Final option was to join the Coast Guard.

I think kids today should learn about military tactics. They made need to use them again when they come home.

Aug 8, 2014 6:41PM
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My parents grew up during the Great Depression. My Father served in WWII and mother learned to ration and yet make ends meet. Yet what they had to endure and learn from them hard times don't apply! You msn are idiots to think otherwise with this BS report for the new and upcoming generation flipping burgers.
Aug 8, 2014 5:17PM
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Your parents and my parents , never gave us bad information , unfortunately how we interpreted that information and the choices we made , is what lead us astray . Education is , and always will be the key to success , because the economy is bad, and education is expensive, is no bearing on what your parents told you . Working hard is another good trait to have , but I would add , working smart . Hard work doesn't hurt anyone , and I'd like to see more hard workers . Money can't by happiness ? Happiness is a relevant term , and yes money can help to make us happy , but happiness comes from within . Only you can make you happy , not money . Please don't blame your parents for the choices you make as an adult . If they told you stories that weren't quite true , so what . Most parents only want a better life for their children , than what they had .
Aug 8, 2014 5:10PM
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This has to be the dumbest article I have read in a long time. The reason there are broke people isn't just the economy it's because of terrible advice like this. Unbelievable. 

Aug 8, 2014 5:14PM
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Talk about "bad" advice, this article is full it; well according to Dave Ramsey, it's the worst advice I've read in a while. If you are interested in some good common sense advice; read Dave Ramsey's "Total Money Makeover" or "Financial Peace."  Either of those two books will put you on the right track.  
Aug 8, 2014 7:11PM
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That's why the poor will never have money. They come up with all this crap that money can't buy happiness. I'd rather have money than not any day.

 

Still, even if money doesn't buy happiness IT DOES BUY SATISFACTION.... and healthcare, food, a nice home, a reliable car, entertainment, clothes, furnishings, toys and goodies, savings for retirement, savings to send kids to college, and all the other things people want in life.

 

Aug 8, 2014 5:39PM
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 Wow I can't believe this author has a job and is allowed print this horrible advice. Actually advocating for people to go into debt to build credit for the sole purpose of going into more debt???

 

  Thomas Stanley did a 20 year study and in depth interviews with the top 400 millionaires in the world. The number one answer they gave to the reason of their wealth was having Integrity.  Guess what #2 was?  Avoiding credit cards and never using or having debt.  Not one of these millionaires studied ever said they got rich using credit cards to get free rewards points and airline miles. Ridiculous.

 

  Also it is a fact that when people use plastic over cash, they spend on the average 12 percent more per purchase and 22 percent more if it is on a grocery store. Why, because when you take cash from an envelope marked "Food money for the week", you feel the pain more and it makes you be more careful in your purchases and not overspending.

 

   In closing, Proverbs 22:7 says the "Borrower (you) is slave to the Lender (MasterCard)' and the Rich (MasterCard) rules over the poor" (you)

 

   Read Dave Ramsey's Total Money Makeover and you will be rich, never borrow money again and you will leave a legacy for your children and your children's children.

Aug 8, 2014 4:44PM
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So far I do ot "see' where the advice is wrong....unles you work for the banks...every ounce of that advice is directed at keeping you fm the claws of the bankers....heed that advice ....
Aug 6, 2014 8:10AM
Aug 8, 2014 7:01PM
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Sorry, I skipped college and I'm a non-degreed electrical engineer with a lowly vocational high school education.  I've designed aircraft, food manufacturing plants, manufacturing machinery, etc...  I'm semi retired and make a 6 figure income selling cars now.  I have never had trouble finding a well paying job without a college education.  For those of you just starting out, remember this phrase... "What I lack in experience or education, I gain in ambition".  I can figure it out!  I've seen a lot of PHD's at McDonalds asking ..."would you like fries with that?".


Credit cards are great way to maintain your credit rating, the caveat is you need to use them instead of cash and pay them off every month.  What's funny is I earn more money in rebates and discounts using my cards as cash than I earn just leaving it in the bank, go figure. 


 I paid cash for my last house and have not had a mortgage for 10 years.  This allowed me to bank 40% of my after tax income for a long while and build a nest egg.  Everything we own is paid for.  The only time I use credit is when I get 0 or next to 0% interest, why not use someone elses money for nothing.  My wife has not worked for the last 10 years, however when we financed big ticket items in the past, max payments and total debt were based on 1 persons income. This circumvented major marital fighting and financial issues in case one of us lost our job. 


I'd rather be an unhappy wealthy person than a miserable poor one.  Sorry money doesn't buy happiness but it sure takes the edge off.


I've never had any luck investing and lost a bunch after the dot com bust and the Nasdac had never fully recovered since.  I shy away from it.


Living within your means is the only financial advice that really works.  I have not found a way to really make my money make money but at least I sleep good at night knowing it's there. 

If the Fed ever gets interest rates back to normal perhaps I can retire. 

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