Early Formative Financial Events

[Dicast]

I was reading the latest blog post and had a flashback to my first financial lessen from my parents.  My introduction to money came in the way of an allowance.  I remember them telling us for several weeks that they would be starting an allowance.  I think I was 7 or 8 years old.  I was salivating at the ability to buy anything I wanted.  The first day they gave me my allowance, a whole $2.50 (my dad would later state he regretted involving quarters), I started begging my parents to take me toy shopping.  After several days they finally relented and to shut me up they took me to Target.  Once in the toy section I started picking out toys, most of which where too expensive.  I was then schooled on sales tax which further reduced my purchasing power.  All of this was washed aside though by my ridiculous desire to buy something.  Eventually I settled on a toy gun that made a clicking noise when you pulled the trigger.  As soon as we returned home and I had played with the gun until I was tired, I realized I had nothing left to buy anything else and set into the worst case of buyer's remorse I have ever had.

As silly as it sounds, losing that first $2.50 to a toy gun made me never want to spend anything ever again.  I generally think about a purchase and then shelve the idea for a few days or weeks to make sure I don't have any pre-buyer's remorse.

I've made many more costly mistakes but was wondering if anyone else had similar experiences...

[The White Coat Investor]

I lost a $5 bill as a kid. Still remember how bad it made me feel. Not sure it had any long term effects though.

[Dicast]

The White Coat Investor wrote:

I lost a $5 bill as a kid. Still remember how bad it made me feel. Not sure it had any long term effects though.

Click to expand...

LOL, thanks for not letting this thread die at 1 post.  I think Gasdoc and I were thinking about your blog post similarly.  Avoidance of buyer's remorse has genuinely shaped my financial life, I've tried to loosen up over the years though.  I think the term miser was used against me more than a few times.

I'll let you know if I find $5.

[NaOH]

.

[Zaphod]

Food stamps, coming home to items being "stolen" (tv, etc...) which turned out to be just getting pawned, and every other fun thing this sort of upbringing experiences. Fairly early on decided I wanted a totally different life.

[MrsIMDoc]

Zaphod wrote:

Food stamps, coming home to items being “stolen” (tv, etc…) which turned out to be just getting pawned, and every other fun thing this sort of upbringing experiences. Fairly early on decided I wanted a totally different life.

Click to expand...

Similar experience - WIC, food stamps, no health insurance (prior to the days when all kids had health insurance via CHIP), and a father who gambled among other things leading to bankruptcy.  When I was nine I remember promising myself I would have a different life and would be a perfect student.  I had a job since I was 12 years old and have never paid interest on a credit card because debt scared me after seeing my parents situation.

Coming from a lower socioeconomic status, it was initially hard to understand that becoming a physician would not solve all my financial problems. WCI has helped give me the financial education I never learned growing up.  My biggest challenge now is restraining myself from trying to continue to give money to my extended family.

[Zaphod]

MrsIMDoc wrote:

Zaphod wrote:

Food stamps, coming home to items being “stolen” (tv, etc…) which turned out to be just getting pawned, and every other fun thing this sort of upbringing experiences. Fairly early on decided I wanted a totally different life.

Click to expand…

Similar experience – WIC, food stamps, no health insurance (prior to the days when all kids had health insurance via CHIP), and a father who gambled among other things leading to bankruptcy.  When I was nine I remember promising myself I would have a different life and would be a perfect student.  I had a job since I was 12 years old and have never paid interest on a credit card because debt scared me after seeing my parents situation.

Coming from a lower socioeconomic status, it was initially hard to understand that becoming a physician would not solve all my financial problems. WCI has helped give me the financial education I never learned growing up.  My biggest challenge now is restraining myself from trying to continue to give money to my extended family.

Click to expand...

I know its terrible but I basically do not talk to half of my family on anything that can be considered a regular basis.

[PhysicianOnFIRE]

My dad taught me the Rule of 72 when I was probably in Junior High, when the S&P 500 was on a tear, averaging 18% (doubling every 4 years) for nearly 20 years.

Around the same time, I clearly remember cruising around town with friends who were on bicycles, and I was on a scooter. I was the last of four or five of us, because I was slower and constantly looking down as I pushed with one leg. Looking down, I saw a $20 bill in the gutter. My friends thought I should spend it (on them). I put it in my savings account.

 

[VagabondMD]

The White Coat Investor wrote:

I lost a $5 bill as a kid. Still remember how bad it made me feel. Not sure it had any long term effects though.

Click to expand...

One summer evening while playing catch in front of his house, JB threw a short hop that I could not quite smother with my glove. It skipped by me and into the bushes in front of Mrs. P's house. I reached into the hedges, searching for the ball, and instead pulled out a five dollar bill. I could not wait to tell my father that while he might be technically right about money not growing on trees, I had just learned that money can be picked from the shrubs.

Now I know where the $5 came from. ?

[MrsIMDoc]

Zaphod wrote:

MrsIMDoc wrote:

Zaphod wrote:

Food stamps, coming home to items being “stolen” (tv, etc…) which turned out to be just getting pawned, and every other fun thing this sort of upbringing experiences. Fairly early on decided I wanted a totally different life.

Click to expand…

Similar experience – WIC, food stamps, no health insurance (prior to the days when all kids had health insurance via CHIP), and a father who gambled among other things leading to bankruptcy.  When I was nine I remember promising myself I would have a different life and would be a perfect student.  I had a job since I was 12 years old and have never paid interest on a credit card because debt scared me after seeing my parents situation.

Coming from a lower socioeconomic status, it was initially hard to understand that becoming a physician would not solve all my financial problems. WCI has helped give me the financial education I never learned growing up.  My biggest challenge now is restraining myself from trying to continue to give money to my extended family.

Click to expand…

I know its terrible but I basically do not talk to half of my family on anything that can be considered a regular basis.

Click to expand...

Once I got married, my husband and I made the decision to stop giving everyone money.  He helped me realize that making a resident salary with student loans, we were in no position to give financial aid to my family. It has meant stopping talking to many of my family members.

[AlexxT]

I was at an amusement park with my father,and I asked him for a dime to use to play a game of chance.  I immediately won a large stuffed animal.   I told him that this was a great deal:  I played one dime, and won a stuffed animal worth several  dollars.  He gave me a hard look, handed me about 20 dimes, and told me to play some more.  I lost on every throw.  I've never gambled since.   ( Well, ok, I have bought about one lottery ticket every 3 years or so, but I always feel guilty and stupid when I do. With good reason ).