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    Key financial lessons we can learn from our parents

    Key financial lessons we can learn from our parents

    Key financial lessons we can learn from our parents
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    By CNBCTV18.com Contributor  IST (Updated)


    Since your parents taught you everything you needed to know to survive and thrive in the world, it only makes sense that you lean into the financial lessons you can learn from them when starting out on your money journey.

    Think about some of your most eminent habits and fundamental values. If you think long enough, chances are, you will realise most of them are things you’ve learned from your parents growing up. It could be something as basic as having an early dinner or something as meaningful as giving back to society. Hence, when starting out on your financial and investing journey, it will be just as helpful to reflect on all the financial habits of your parents and draw a few invaluable lessons.
    Discipline is the key to success in life
    The art of discipline can be learned the best from your parents - they know that the importance of discipline seeps into all aspects of life. Whether that’s waking up at the same time every morning even if it’s the weekend or finishing everything on your plate during mealtime even if you don’t like it. You must have also seen your parents be financially disciplined when it came to saving money and living comfortably within their means.
    How to follow this lesson: An important aspect of financial discipline is goal setting and execution. Begin with financial goal-setting to map out details such as what your goal is, how much time you may have to meet it, and therefore, what the amount you need to save should be. You can then use the Appreciate app to get personalised recommendations and investment strategies so you know where and how to invest your money for maximum success.
    Saving money no matter how little
    At some point in your childhood, your parents would have gotten you a piggy bank of some sort. You must have also seen your mother trying to get the best possible price when shopping for groceries routinely. These amounts may have looked small but they never were irrelevant to your parents. That’s because they knew that little amounts have the power to amount to money that will come in handy in the future for important things.
    How to follow this lesson: Every time you spend money, whether that’s on your daily coffee or the cab ride to work, save the change you get. In fact, with the Appreciate App, you can link your cards so that the change on all your transactions gets automatically invested in securities to bring you closer to your financial goals.
    Don’t put all eggs in one basket
    If you ever sit down to have a conversation about money and investing with your parents, you will realise that no matter their investment strategy, they never put all eggs in the same basket. Investing in the stock market is not enough - they may have gold, real estate, and other assets in their portfolio too. The reason for this is to diversify into different asset classes and reduce the risk of one asset not performing well.
    How to follow this lesson: You may not have the knowledge or money to begin investing in real estate or other high capital assets just about yet. But you can still diversify your portfolio by investing in the global stock market. With Appreciate, you can access the US markets in a single click and choose from over 9,000 stocks and ETFs. This not only means reducing risk but also enhancing your returns.
    Keeping it simple and cost-effective
    Did you ever see your mother use excel sheets or some complicated formula to create and maintain the monthly home budget? Or did your father pay a fancy analyst to have hour-long discussions every day before making investment decisions? And yet they managed to make strategic financial decisions. Keeping things simple yet effective is probably one of the most important financial lessons you can learn from your parents.
    How to follow this lesson: The Appreciate app is designed to offer you a simple, easy, and transparent way to invest smartly and build a diversified portfolio. There are no subscription fees, hidden charges or additional costs. There aren’t any minimum investment amount requirements either. So you can get investing right away and in a seamless manner.
    Going over these lessons, you may have a lot to discuss with your parents. So pick up the phone and give them a call. Also, make sure to sign up on Appreciate to get all the support you need to act on these crucial financial lessons.
    The author, Shlok Srivastav, is Cofounder at Appreciate. The views expressed are personal
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