My parents, and really my entire family, absolutely expected me to go to college. Starting when I was in the 7th grade, my grandparents would buy me hard copies of the US News and World Report College Rankings. I would spend hours pouring over the information. I decided to go to a small, private liberal arts school and graduated with a degree in political science. College (tuition, room and board, some spending money) was completely paid for by my parents and grandparents, and I was so incredibly lucky to graduate without any debt. I was thankful at the time, but did not truly understand how much that would impact my finances in the future. Now that I am approaching 40, I know it was one of the greatest gifts they could have given me.
Growing up, what kind of conversations did you have about money? Did your parent(s) educate you about finances?
My parents discussed money with me regularly when I was growing up and the conversations continue today. I think the fact that I am an only child has a lot to do with this. When you’re an only child, you are often seen as simply a shorter adult in your family. I knew roughly how much my parents made, how they were investing their money, and how they were budgeting. Now that I am older, I am so thankful for those open lines of communication surrounding finances. I know my parents are financially stable as they continue to age. I know where the money is located, and approximately how much is available.
What was your first job and why did you get it?
I started babysitting when I was 13, which, now that I have a child of my own, seems absolutely bananas. When I was a senior in high school, I started working at a local ice cream shop. They let me come back summer after my freshman year of college, too, which was so nice of them. In college, I worked at a local restaurant for three years (during the school year and summers). It was a great job that gave me spending money and allowed me to pay my sorority dues.
Did you worry about money growing up?
When I was going into the 6th grade my mom switched careers and took a huge pay cut. I remember being very aware of this and hearing so many conversations about changes we would need to make. In the end, it all worked out and her salary grew tremendously as her career grew. But those first few years were tense.
Do you worry about money now?
Sometimes yes, sometimes no. Most of my concerns are big picture: Are we being strategic enough with our money (I don’t think we are), are we saving enough for the future, are we being frivolous? Things like that.
At what age did you become financially responsible for yourself and do you have a financial safety net?
I’ve provided additional details below, but honestly, I’m almost 40 and I cannot truly claim to be financially independent. My family is our safety net and it gives me such peace of mind.
Do you or have you ever received passive or inherited income? If yes, please explain.
Yes. When my husband D. and I bought our first house, my parents fronted us my inheritance from my grandfather, approximately $70,000, and then paid themselves back when he passed away a year and a half later. We put this towards our down payment. When we sold that house and bought our condo, they gifted us another $10,000 to put towards our next down payment. When we bought our car in 2020, my parents gifted us $10,000 to put towards it. Each year, my parents gift us $8000 specifically for our son F.’s school tuition. This is all separate from birthday and holiday checks, which total about $3,000. When D. and I got married, my parents paid for our wedding (~$25,000) and his family paid for the rehearsal and other “traditional” expenses that the groom’s family takes on (~$5,000). When my parents pass away (hopefully a very, very long time from now), D. and I will become millionaires through inheritance.