Many Gen Xers grew up “feral” — unsupervised and without a lot of limits or lessons, like how to take care of their finances.
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While some Gen Xers may have been lucky to get financial advice from their parents or other adults, many made it to adulthood by figuring things out for themselves, the hard way, and some are still paying the price for that.
Here, two Gen Xers discuss the money lessons they wish they’d learned as kids.
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Hampered by High Interest
For Julie Schwietert Collazo, 47, an American living in Mexico, her parents were “quite poor” and had a single-minded focus of getting her and her brother to college. “It was not a question of whether we were going to college; we were definitely going,” she said.
Without much family money to bolster her college experience, and with little financial literacy, she paid for college through a mix of scholarships, jobs and, eventually, credit.
“I had no idea what credit was,” she said. Her credit card debt eventually mounted to the point where she had to engage credit counseling to deal with it.
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Living With Past Choices
Now, closer to her 50s, she noted, “I don’t own property, I’m the sole breadwinner in my family, and living on the financial precipice constantly. I still joke that at 47 I’m paying off toothpaste that I bought when I was 19.”
While she may have a sense of humor about it, she doesn’t find the ripple effect of her poor lessons in credit funny today.
Teach Kids Early
Collazo advised, if you’re a parent, teach your kid about credit as early as possible. Once you start accumulating credit-related debt, it tends to compound and follow you for years, affecting nearly every aspect of your life.
She has talked at length with her kids about it since they were very little to the point that she imagines they are “sick of it.” But she’d rather they be sick of her driving home the point, than find themselves in the same financial boat.
Understanding Credit Scores
Credit is also a theme for Courtni Kenyon, age 45, a senior account executive based in Washington.
“I didn’t realize how significantly [a credit score] would affect major life decisions — from renting apartments to buying cars and homes,” she said. “Good credit doesn’t just determine if you qualify for loans; it affects the interest rates you pay, potentially saving — or costing — thousands of dollars over time.”
Her realization that a credit score could impact “unexpected areas like job applications, utility deposits, and cellphone plans,” was a rude awakening, she said. Had she known this earlier, she would have started building credit responsibly at a younger age and been more careful about payment history.
“It took years to correct this mistake, making it the financial lesson I most wish someone had taught me as a kid,” Kenyon said.
Growing up poor, she said she had “zero education” on credit much less even budgeting, money or investing.
Lingering Costs
Kenyon said that her “underdeveloped” relationship to money in her youth “had lasting consequences,” in which she flew through her 20s “financially blind” and unaware of the long-term impact of many of her financial choices.
“It wasn’t until my 30s that I finally started developing financial literacy and making smarter money choices.”
Even though she managed to turn things around later on, she described the cost of this late financial awakening as “significant,” citing repercussions of earlier financial mistakes — such as debt she accumulated, investments she missed out on or savings she failed to build.
“When I finally ‘woke up’ to financial responsibility in my 30s, I found myself playing catch-up instead of building on a solid foundation,” she said. “This delayed financial maturity means I’m essentially starting from behind, trying to make up for lost time and missed opportunities.”
While she’s now making better choices, she called it “a sobering reminder that financial education and responsibility should start much earlier in life.”
Advice to Others
Kenyon recommended that younger people start disciplined budgeting early and follow through with it.
“A budget on paper is meaningless if you don’t stick to it. And while you’re building those good habits, prioritize investing in your future self — that means consistently contributing to both savings and retirement accounts, especially your 401(k),” Kenyon said.
The power of compound interest means every dollar you invest in your 20s is worth significantly more than money invested later in life.
Additionally, she urged, “Don’t live beyond your means. Write that budget, and do your best to stick to it, even if that means missing out on something because you don’t have the money. Pay yourself first — always, even if it is something as small as $20 per paycheck.”
Lastly, credit is credit, not income, she stressed. “Don’t live on credit cards.”
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This article originally appeared on GOBankingRates.com: I’m Gen X: The Money Lessons I Wish I’d Learned as a Kid
