Money Habits A Family Trait

Posted in Money Tips
Posted by Wendy Young, CERTIFIED CREDIT COUNSELLOR

money-habits-updatedBy the time a person reaches a certain age, everyone knows it’s bad form to continue to blame one’s parents for their own struggles. Sure, they may be responsible for your poor vision and lack of musical pitch, but is it right that they bear accountability for your financial difficulties?

As it turns out, they should.

Money Advice Service, a money-management counselling organization in the UK, conducted a study recently that revealed that parents’ and kids’ financial habits are actually directly connected.

The research discovered that if a young person grew up in a household that consistently struggled to set aside money for emergencies and to settle its debts, the more likely he will similarly labour with their own personal finances.

And kids who were raised by parents who maintained emergency savings funds and were mindful of their monetary obligations tended to adopt the same practices themselves.

Among the 1,000 plus 15 to 17 year old's Money Advice surveyed for the study, 68 percent of those brought up in money-conscious families regularly set aside savings. That’s compared to the 47 percent of conscientious savers raised in families that wrestled with having enough cash when times got tight.

The study also found that more than half (53 percent) of those surveyed teenagers whose parents practiced smart money management, find it easy to live within their means. Just 29 percent of their less financially prepared peers consider living within their means achievable.

Clearly, a person’s money habits take shape at a young age and cling tight. If you’re among that segment of the population whose role models might not have instilled the most sensible financial routines, don't worry. The first step in changing the course of your financial traits is recognizing its presence and working to change the way that you think about money.

If you need help breaking the family cycle contact a local Trustee in Bankruptcy to discuss all of your options for becoming debt free and creating a financial plan for the future.