Education was a very high priority in my family. My parents are both highly educated and there was always an expectation to earn a four-year degree. There was also an expectation to attend graduate school at some point, although there was less of an emphasis on a graduate degree than on a bachelor’s degree. I have a bachelor’s and master’s degree, both in public policy. Because of how much my parents prioritized and valued higher education, they paid the full cost of attendance for me to attend college and graduate school.
Growing up, what kind of conversations did you have about money? Did your parent(s)/guardian(s) educate you about finances?
Growing up, my parents emphasized the importance of saving money. They always reminded us that although we were comfortable financially, money was typically spent either on the essentials or put away in savings to be used on something meaningful later on. Along those lines, they also instilled in me the importance of using my money to give back to my community or to those in need, if I was in a position where I was financially able to. My parents often discussed with my sister and me which local organizations they donated money to and made sure we understood the value of donating extra money (and saving it) rather than spending it on luxury vacations, expensive cars, etc. My parents also educated me about finances — essentially all my financial knowledge comes from them. They helped me open my first checking account and credit card, and they explained how different accounts work, how to be smart about credit card usage, and so on. My dad also helped me open my brokerage and Roth IRA accounts and still sits down with me usually once a year to discuss investment strategy and help me invest money into both accounts.
What was your first job and why did you get it?
I worked at a summer camp teaching children and teenagers how to ride horses during the summer after my senior year of high school and before I started college. I had volunteered at the camp during several summers prior, and I finally reached the age where I transitioned into a paid staff member (18+) instead of a volunteer (15-17 years old). I wanted to have some spending money saved up by the time I started college. Even though my parents generously paid the cost of attendance, it was my responsibility to pay for transportation, entertainment, food that didn’t come from the dining halls, etc — anything that wasn’t captured in the cost of attendance.
Did you worry about money growing up?
No, growing up I was always under the impression that we had enough money to cover the necessities, plus more. I understood that my parents were smart about saving and had enough money put away that if any financial emergencies arose, we would be able to handle them.
Do you worry about money now?
Yes, I live in an extremely high cost-of-living area and don’t make enough where I am able to pay all my expenses and save a good amount of money each month (which I consider to be very important, given what my parents taught me and how they saved money when I was growing up). I track all my expenses and try to budget but regardless, every month I barely save any money and don’t have much room for unexpected and unplanned expenses. I’ve had a lot of unexpected or unplanned expenses come up recently, such as vet bills for my horse and medical bills for myself, but I don’t have extra income each month to be paying for these expenses. Significant yearly raises and large bonuses at my job are very rare, so I know that there is almost no chance that I will be making more money all of a sudden. I am constantly worrying about what I’ll do if I get hit with even more unexpected expenses, because I will not be able to pay for them and really want to avoid going into debt.
At what age did you become financially responsible for yourself and do you have a financial safety net?
I would say that I became almost fully financially responsible for myself around the time that I got my first career job (about a year and a half ago) and started paying my housing costs. Throughout college, my parents generously paid my housing costs, and in the half-year between graduating college and getting my first full-time job, I was living in a condo owned by my parents, so I didn’t pay rent. Since I got my first full-time job, I’ve paid for everything myself except my phone bill (I’m on a family plan) and car insurance (which my parents pay for to ensure that I always have coverage). I know that if I lost my job, my parents would help with some basic living expenses (although I’d be expected to find a job in the interim, or use my savings to cover things like paying for my horse), so I do have a financial safety net, although I always do my best not to rely/fall back on that.
Do you or have you ever received passive or inherited income? If yes, please explain.
No.
