7 Poor Money Habits You Learned Long Ago That Are Still Hurting You Today

Crystal Mayer  Wed, April 17, 2024

Studies show that money habits are learned at an early age. Some research indicates that these habits, good and bad, may be in place by age 7. Almost all experts agree that sound financial practices should be started in childhood and reinforced throughout early adulthood. Unfortunately, many adults learned poor money management skills during their most formative years, leading to long-term financial struggles.

Money mishaps may have been picked up because of what was modeled in a person’s household, while others are the result of a simple lack of understanding. Money, to many generations, is also still considered a taboo subject, meaning dinner-time conversations aren’t really centered around financial literacy.

At GOBankingRates, we surveyed over 1,000 adults to find out what bad financial practices they picked up during childhood and early adulthood that are still causing them problems. Almost across the board, their answers were the same as what many adults struggle with throughout their lifetimes. Here are seven poor money habits many folks learned long ago that are still hurting them today.

Using Credit Cards Too Much

According to those surveyed, over 33% said they learned the poor money habit of using credit cards too much to buy things during childhood. Another 37% said they developed the practice during early adulthood.

Ann Martin, director of operations at CreditDonkey, said, “As a young adult, I watched many of my acquaintances overextend themselves by relying too heavily on credit cards. Although credit card purchases can sometimes be downright necessary for unemployed (or underemployed) individuals, you can sometimes find yourself on a slippery slope that leads to overspending.”

She continued, “Start by tracking your credit card spending to overcome this poor money habit. You’ll often be shocked to find that you spend far more on your credit cards than you realize. This realization is an important first step in cutting back on spending and repairing your relationship with credit.”

Not Prioritizing Saving

Another common money mishap among those surveyed was not prioritizing saving. A resounding 39% of respondents said they learned this habit during childhood, while 32% said they developed it during early adulthood.

Shawn Plummer, chartered retirement planning counselor with The Annuity Expert, explained, “As someone who understands and uses the best that the traditional and modern money habit philosophy can teach, I’d say a lot of it has to do with learning how to place limits on yourself, and of course, keeping yourself accountable for those limits.

For example, when you decide to spend less or save more money for whatever reason, your first goal should be to set up systems that prevent you from abusing your own limits due to bad habits.”

He added, “Instead of keeping spare cash at your side — have your bank save up to 10-20% of your income or salary without allowing you to withdraw it so easily at the first sign of some inconvenience.”

To Read More:

https://www.yahoo.com/finance/news/7-poor-money-habits-learned-130037127.html