What’s your first memory as it relates to money? I have a few. One of them is mowing my grandparent’s lawn and getting $10 when I was about age 9 or so. Ten dollars was a tidy little sum in those days, and I think my parents would only give me $2 or so each time I mowed ours. So, $10 was a big deal. It was exciting. It was powerful because I started wondering what I would spend it on. And it was habit forming. I wanted to mow their lawn each week if they would let me (their lawn didn’t need to be mowed more than once per month in those days, but you get the point).
Another memory that stands out for me is when I overheard my mom and dad talking about money and my dad needed to ask for a raise. I didn’t understand it completely back then, but I knew that what was needed was more money in the bank account. And for whatever reason, asking for money seemed like a scary thing to me back then.
Still, another memory from when I was closer to age 6 or 7 was when I had been given $10 dollars for my birthday and I wanted to buy a Star Wars TIE Fighter. You know, the ones from the movie that Luke Skywalker and Han Solo battle against near the end of the first movie? Well, the price was $9.99 and I had $10. But I didn’t have enough because sales tax was 6% and the overall cost was $10.59. And I couldn’t understand how the cost could be more than what the price-tag indicated. Lessons learned.
People’s first memory of money can differ widely. I have just shared two of mine (I have more, you will have more as well). What are yours? Think about them for a few minutes. And think about how they made you feel.
Are your beliefs about money now in any way related to what you experienced as a child? Do you still have baggage from when you were an adolescent and just experiencing money for the first time?
Are you making financial decisions based on a past memory that isn’t serving you well today? Such as keeping too much in checking or savings? Not investing enough into a retirement plan? Taking on too much debt?
Let’s talk about this at our next meeting.
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The views expressed here reflect the views of Alex Bishop as of February 20, 2024.These views may change as market or other conditions change. Actual investments or investment decisions made by Ameriprise Financial and its affiliates, whether for its own account or on behalf of clients, will not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor circumstances.
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