When I was ten or so, I desperately wanted a new Caboodle for my burgeoning makeup collection. (And did you know that they're back and updated? I kind of want one now!) I was supposed to save half of my $2 weekly allowance, but I horded it all for the desired case; when it went on sale before I had collected enough, I carefully calculated the tax, raided the house for every bit of spare change to cover the expense, and rode my bike to the store to claim the Caboodle that made me feel soooo much cooler than my fourth grade status. Even if I did pay for it in coins!
And that's been the definition of my financial life ever since – big spend-ah, even when I don't have the money. When I spent a summer in New York during college and my new bank offered me a credit card, I looked at the $2,000 credit limit as cash in hand to shop, eat, drink and enjoy the city for the next three months. Dayum, those were the days! When I get a real job, I figured, I'll pay it all off. Ha ha. I had no concept of the consequences – the money would somehow work out like it always had in the past. I managed to put off reality for the next seven years, but when I was laid off in November and realized I was staring down close to $50k in credit cards and student loans, it was a HUGE wakeup call! Thank god for unemployment, but it's a struggle just to pay my all my bills on the drastically reduced income, let alone tackle my debt or save.
How did I end up living in this financial fantasy world? I didn't grow up rich in the least, so where did this sense of entitlement came from? Trying to revamp my attitude and habits toward money, I'm considering the lessons I learned – or didn't learn – from my parents. I was obviously a natural-born shopper at a young age – thanks, Mom! We bonded by going to the mall every weekend, and though she instilled in me a love of bargain hunting, I developed an insatiable need to buy, buy, buy. At the same time, my mom avoided talking about money like it was more taboo than sex, while my dad spent beyond his means to shield me from the financial stresses he was juggling. We never owned a house or had cable TV, but I never went without and had no idea how much debt we were in. Completely oblivious to managing and saving money, I only learned how to spend and grew up thinking that dire financial circumstances just couldn't happen to me, no matter how much I screwed up.
Well, it was fun while it lasted! Now it's time to grow up. Time to break from family tradition and find my own way. While it's not as carefree, it's much more satisfying to arm myself with new knowledge and take responsibility for climbing out to financial stability on my own terms . I'm excited to have all of you fabulous recessionistas along for the ride, to share the tips, news, deals and insights I learn along the way. And I can't wait to hear your stories and advice as well...
Are you carrying on a financial legacy that you'd rather not? What have you picked up from your parents about money? Are you learning from their mistakes? Or following their lessons? When did you grow up and face the bottom line?
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