by Dr. Charles Alonzo Peters
My grandparents amaze me to this very day. Their calm wisdom and simple ways stand in stark contrast my hectic, frantically charged life. They display a common sense approach to finances that’s all but disappeared in our world of credit cards and naked consumerism.
Today, we make more money and have more opportunities than our grandparents but unlike them, we seem to be swimming in a mountain of debt, having trouble making ends meet.
I used to think their ways were old fashioned. Not in touch with the times. But now it seems old fashioned advice is exactly what many of us need. A few years ago when I became serious about wiping out my debt I revisited some of the financial behaviors of my elders.
Live Below Your Means – None of my grandparents lived flashy or extravagant lives. They never purchased over sized homes they couldn’t afford or outrageously expensive cars that depreciated rapidly. Yet they were comfortable and more importantly happy. Seems not having the constant stress and worry of debt will do that for you.
Pay with Cash – Cash seems so outdated. But in this day of plastic, my grandmother still uses cash. It makes her spend more cautiously. As personal finance guru Michelle Singletary puts it, we feel the “sting” when we use cash. Retailers know this too. Studies show we spend up to twice as much when we use credit cards instead of cash.
Debt is a Four Letter Word – Speaks for itself. For my grandparent’s generation, if they couldn’t afford it, they didn’t buy it. Debt truly was a four letter word.
Cherish the Small Moments in Life – Since when did happiness carry a price tag or designer label? Many of my happiest moments were spent laughing and enjoying family get togethers at grandma’s Sunday dinners or Holiday gatherings. It wasn’t the money that made an event special but the time spent with special people.
Consider Every Purchase Carefully – When I take my grandmother shopping I’m amazed at how she takes a moment to consider every single purchase. You can see the mental gears turning – Do I need it? Do I have something at home that’ll do the same thing? Can I buy it cheaper somewhere else?
It’s as if she’s trying to find a reason not to buy, instead of like so many of us, looking for a reason to buy. In an impulse driven world this habit of conscious spending is one I’m gradually learning to appreciate.
Nothing Beats Homemade Cooking – Who can’t remember grandma’s homemade cooking – succulent ham that made your mouth water, golden brown cornbread that simply melted between your lips, and collard greens that sent you to heaven.
We forget that cooking homemade meals was a financial necessity for our grandparent’s generation. In my attempt to become financially fit, I’ve found a new appreciation for the art. Yes, Im dusting off the old family recipes.
Our great-grandparents or grandparents witnessed the Great Depression. They truly knew what it meant to stretch a dollar until it screamed. For them sound financial habits became second nature. They say everything old is new again. Perhaps we can use their old money wisdom to survive and thrive in today’s tough times.
BMWK, Where your grandparents frugal? What do you remember about how they spent money? What pieces of advice from your grandparents serves you well today?
Every Monday you can find great insight and tips on managing your greenbacks by Dr. Charles Alonzo Peters of MochaMoney.com here on BlackandMarriedWithKids.com.
Cheryl says
I was not priviledged to know either sets of my grandparents on this level as they were scattered all over the globe when I was a child, but this is how my parents raised us. I thought it was the difference between American and foreign born parents. My mom knew how to make a dollar scream at the grocery store, and we only ate out on very special occasions – like a graduation – birthdays got you a homeade cake, maybe a little party in the yard with your friends and family. Even now in retirement, they only have 2 credit cards, with no balances, and a house they were able to buy cash.
Possiblepen says
This is dead on the money. I used to wonder how my grandparents could do so much with so little. I was a constant moocher when I was in my 20s and one day I found out how much my grandmother actually made per hour and I was totally embarrassed. I should have been helping her out. The whole experience made me look at her lifestyle more and vow to live below my means. I am still working to create the financial future of my dreams, but frivolity is totally out of the picture. I really do cherish the little things.
Alonzo says
I can totally relate. For nearly a year while I was in graduate school my grandmother paid my student loan bill. Now looking back on it I feel a little ashamed that a grown man had to have his grandmother help him pay the bills. But like you said it made me re-examine how I was living my life financially.
Alonzo says
It’s amazing that our grandparents and in your case parents did so well making less money than we did. Like your parents my parents never had a credit card until a few years ago. I used to think they were so old-fashioned for not having one. They were just smarter.
just visiting says
All great comments. Let us not forget the lesson about not loaning money to others. I didn’t learn this from my grandparents, but the rule has allowed me to help others. It’s actually biblical. I’m paraphrasing, but “the borrower is the slave to the lender.” My not lending, you eliminate the risk that the borrower will ignore you for months. If you have it, give it, but only for good causes. Don’t duplicate the giving if the person has not learned from their mistake. Our grandparents seemed a lot more conservative than we are because we tend to get that way as we get older.