As financial literacy gains more attention, more youngsters are becoming aware of the importance of saving and investing early. They are closely watching stock markets, exploring options like mutual funds and looking for assets that can help them achieve their financial goals.
At the same time, youngsters are also taking money lessons from their parents and avoiding their mistakes. One such familiar discussion is also going viral on Reddit, where many shared the key financial habits they learnt or avoided after seeing their parents.
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For most, one of the key lessons was avoiding loaning money to friends or relatives.
“Never lend money to friends and family unless you're prepared to lose the lent sum and purposely spoil the relationship….,” a user commented.
whats one financial habit you picked up from your parents that you still follow?
by u/Novelty_Wealth in personalfinanceindia
Echoing similar sentiment, another person shared that even with siblings, one must be careful with inheritance and property.
“Don't trust close relatives, not even your own siblings when it comes to matters of property/inheritance. Keep everything clear on paper and divide everything equally. Don't be greedy,” the user pointed.
According to one more user, noting down expenses is one of the most important financial habits. They explained that it tells you a lot about “convenience tax”, which is a colloquial term for everyday lifestyle spending on ease.
“I'm surprised by the "convenience tax". ₹100-150 UPI daily was soooooo hitting my pocket. I sometimes feel guilty noting those down, but it's good to know where my money is actually going,” the user said.
Other two major lessons shared in the discussion involved: taking loan to run a household and “living slightly below means”.
Many others also shared loan related lessons, highlighting how debt remains a major financial crisis for many families.
“No kinds of loans unless you are 100% certain of the stability and growth of your income…,” a user said.
On lifestyle inflation, a user shared their philosophy of not buying anything unless they can afford more of it without touching their savings.
“Unless i can buy 10 of it without touching my savings/investments/hurting monthly expenses etc... i dont buy it. So, if I want to buy an iPhone foldable one- I need to be financially strong to be able to buy 10 of them. that's how I approach buying things,” the person commented.
On buying decisions, another user shared a lesson she learnt from her father.
“Buy once, buy good. Then forget about it. I learned it from my dad. As a girl he didn't really teach me about finances, but I could see how he approached any buying decisions….he would always buy the high end stuff and not cut corners anywhere…..My dad built mostly everything in our house in pretty expensive teakwood, and 25 years later it still look good as new, and rarely requires any maintenance,” the person noted.
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Other popular suggestions included making savings and investments on salary day. On making investments, some users also suggested to stay away from “friendly Insurance agent uncle" and "committee aunty", who mostly “rob you either of all the compounding power or even put the principle under risk.”
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