Should You Follow The Financial Advice Offered By Your Parents?

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You have relied on your parents since the moment you were born.

They cared for you, taught you how to walk, talk, and later in life, they continued to teach you a lot of useful things that you will cherish for the rest of your life.

Now that you’re an adult, you still probably rely on the advice of your parents. They’ve been in your shoes, and their advice can help you avoid repeating the same mistakes they’ve made. In turn, you’ll have a better chance of success.

While parents can surely give a lot of useful advice, there are some instances where you should think twice about taking everything that your parents tell you as certain. For instance, when it comes to financial advice, your parents may not always be right.

Why You Should Rethink Following The Financial Advice Of Your Parents

Money is something that we all need to survive. With prices increasing continuously, we need more-and-more money to keep up with life’s many demands.

This is why financial planning is one of the most crucial parts of living a more successful life – when you are in control of your own finances, you are able to save, have liquid money available for those unforeseen moments, and you’ll be able to have a future that you can truly look forward to.

Unfortunately, money management skills do not come naturally.

You need to adopt the right skills, and these skills can often be adopted through the utilization of experts in finances – and let’s face it, we all think that our parents are the best in every aspect.

For this reason, a lot of young adults turn to their parents in order to obtain some skills and advice on managing their money, making investments, and succeeding.

The problem, however, is that the advice that comes from your parents is likely to be outdated.

We are not living in the 70s or the 80s anymore. It is now 2018, and things are different than how it was in the 1900s.

When you ask your parents advice on financial topics, chances are, they will provide you with advice that was relevant when they were your age.

Technology Is Advancing How We Manage Our Finances

Since your parents were your age, there have been several technological advancements. You must take this into account when considering the relevancy of your parent’s financial advice.

For instance, in the 1970s, there was no technology that would give your parents access to an instant overview of all their finances.

Yet, today, you sign in to your online banking app, and you are instantly presented with a complete overview of your finances – current balances, transactions, and more.

Some apps even categorize all of your transactions, making it easier to see what you are spending your money on, where you can save some money, and more.

These are all tools that your parents did not have access to in their younger days, which means they cannot provide you with solid advice on how to incorporate these technologies into your modern-day financial management strategies.

We Live And Work Differently Today

Another important factor that you should take into account when it comes to taking advice from your parents in terms of financial management is that we work differently today, and we also live differently.

By the time your parents were your age, chances are they had to work a nine-to-five job in order to feed their family, care for themselves, afford housing, and plan for their future. Today, however, it’s much easier to start your own business or to work from home as a freelancer.

Since your parents are not experienced in these fields, they would not be able to provide you with accurate advice and information that will help you become a more successful freelancer in today’s competitive online world.

They would also not be able to provide you with much useful advice in terms of finances for your freelance career, as the price for providing certain services are now much higher than a few decades ago.

Be In Control Of Your Own Finances

Due to the variables that come into play when asking your parents for financial advice in the modern day, it is important that you take control of your own finances, and adopt the appropriate skills without necessarily turning toward your parents as a source of education.

Even if your parents are successful in the money and financial departments, they might be limited in the advice that they can provide. Take the time and put in some effort to create your own financial plan that adopts a more modern approach. Consider what you are doing, what it means to you, and what you have planned for the future.

Know that you will make your own mistakes – even in terms of financial management.

Understand this and allow for such mistakes to happen from time-to-time, but also be capable of quickly adapting, strategizing, and then recovering from any consequences that might occur.

This way, you will be able to learn from the mistakes that you make and improve your financial plan from time-to-time since such a plan really isn’t a definite object, but rather a document that needs frequent updating.

It can seem a little daunting when you are faced with adult life, and you do not have the financial skills to ensure a more successful future for yourself, but trust in the fact that the experience you gain will cause you to perfect your skills over time.

Conclusion

While parents have a lot of advice to offer you to help you succeed in life, when it comes to financial advice, it might be time to start thinking for yourself.

Times are changing quickly. Financial advice that worked in their time may not be appropriate for your generation. Consider setting up your own financial plan to succeed in an ever-changing world.

By Vladimir Mirnii

 

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