Inheriting Financial Approaches
Most of us have grandparents (or parents!) who lived through the Great Depression. We know their stories of losing jobs and money, stories of struggle to rebuild what had been lost, stories of uncertainty for the future.
Living through that uncertainty undoubtedly shaped the way many of our elders approached life in the years that followed. Those life experiences produced grit in them and tremendous work ethic to ensure they held their jobs and income. They came up with creative ways to save and stretch their resources.
We often laugh at the ways our grandparents would wash and reuse things like ziploc bags and plastic spoons. They never threw anything away. My grandmother only used napkins that were extra ones she kept from fast food restaurants. There was a whole drawer in her kitchen full of them. She never bought any from a store.
It’s kind of funny to think about in view of our current culture of plenty and waste. But their experiences shaped their outlook on money, resources, and jobs, and that outlook resulted in behaviors to support it. They approached their jobs with gratitude to be employed, no matter what the job was. They learned to work hard, and the harder they worked, the more money they could bring home.
The lifestyle that followed was one of devotion to work. Obviously, it had to be that way. Families need food and homes and medications to survive. Recovery from the Great Depression was through a tunnel of loyalty to work and maximizing resources.
Like all family values, those outlooks and behaviors were passed down through generations. We are all grateful for the strength and spirit our ancestors developed through those experiences. I hope I carry their same work ethic and savvy in my life. But in many cases, they were rooted in fear. Fear of losing a job, fear of not having enough, fear of the future. So the answer became: Get as much money as you can to ensure security. Money became the end goal.
Now, I’m a financial advisor, so of course I’m a fan of saving and planning for the future. But I always encourage my clients to step back and evaluate what their goals are first. How did they form their mindset about money? Is it based in fear that they learned from their parents or grandparents? Are they carrying on a tradition of devotion to work that is off-balance? Do they want to simply get as much money as they can? For what purpose?
Culture Shift
For numerous reasons over the years like technology advancement, opportunities to higher education, accessibility of the world, and many more, lifestyles and approaches have shifted. For as much flack as millenials get, they are rethinking the system and not just taking what’s handed to them. The end goal is not, “Get as much money as you can” any longer. Stockpiles of money are being traded for smaller houses and travel experiences. Instead of performing a job to receive a paycheck, they are choosing to follow a passion and give something they care about to the world. Work is approached differently. They are reevaluating priorities in their lives. Maybe they work less and make less money, but their relationships are healthier.
The easy defense from older generations is concern about the financial future for today’s young adults. What about retirement or unexpected medical bills? Won’t they pay for this “laziness” one day?
The key is to create a healthy balance. The hope is that we take the strong values the generations before us learned about hard work and apply them in ways to maintain a lifestyle that’s meaningful. Think about the future, but confidently prepare for it. Don’t be scared of it.
Take a step back and see how your outlook on money has been shaped by your family. Evaluate if that works for you and what changes you could make for the optimal lifestyle you desire.
I’d love to have this conversation with you! There is no judgment in my conference room. Everyone is shaped by different life experiences, and I love hearing what that is so I can help you create a plan tailored to you. Reach out to me and we can start this journey together!
