My family recently got back from a vacation where we visited my grandparents for a week in Florida. While we were staying with them, I reflected back on many fond memories I had as a child growing up and spending time with my grandparents. Some of those memories reminded me of how my grandparents chose to live their lives financially. They both came from farming families and continue that tradition still today. By no means were they ever overly wealthy – but I always seem to remember they had everything they ever needed in life. They never had the new fancy toys or big new homes, but they always (and still do) lived comfortably and seemed to be happy.
My grandparents grew up as children during The Great Depression. Those events taught them everything they know about personal finance and money. They passed those financial lessons down to their children who passed them down to the grandchildren. Someday I hope to pass down these same lessons to my two boys so they can live responsible lives when it comes to personal finances and money.
During our recent stay with my grandparents, I was still amazed to see how they lived their lives. They have a nice retirement home in sunny warm Florida which took them years to save up for. While we were staying with them, I picked up on the following 3 financial traits that I think are very important.
- Reuse – Reusing items is an effective way to save money as well as help our environment. I feel very strongly about this point and try to live each day by reusing something in our lives. I learned this trait from my grandparents. After our recent visit I realized that my wife and I don’t even come close to reusing things as they do. While their activities may be a little extreme, I look up to them for living this way. After all, they are concerned about our environment and all the waste we create and want a safer and cleaner world for my children. By the way – you wouldn’t believe how many ways you can reuse a plastic butter container! I counted over 100 ways my grandparents are reusing a simple little container like this instead of throwing it away.
- Living Within Your Means – I often preach living within your means here on PFI. I think that my grandparents probably had a role in why I grew up this way. This couple should be the role model for how to live within your means. They have their weeks planned out in advance when it comes to their finances. They never purchase anything they can’t afford – nor do they buy things they don’t need. I respect them for this and hope that I can influence my children enough to live within their means someday when they are out on their own.
- Pay With Cash – My grandparents purchase everything with cash. To be honest – I don’t think they have one single credit card and they don’t believe in taking out loans. They have never taken out a loan for a new or used car – instead they always pay cash for a vehicle. My grandfather actually prides himself on this fact. He always purchases used vehicles because he feels that is where the value is. The point here is not to recommend paying cash for a new vehicle instead of taking out a car loan – but is that they don’t buy things with money that is not theirs! While my wife and I purchase everything through our credit cards – we only use that as a way to make money and pay off this debt each month. I learned from my parents and grandparents that you don’t buy things with money that is not yours!
I think it is so important to learn from your mistakes as well as others. I also strongly believe that people should look back at history and learn from significant events from the past. The Great Depression had a strong impact on my grandparents who grew up as children during this time. I can’t help but think what it would be like not knowing where your next meal will come from. I feel very fortunate for what I have – even if I lost over 30% in my 401k last year!
Next time you get upset about how far the stock market fell yesterday or you are upset that you have to cutback your spending to pay the bills – look around for someone who lived through harder economic times than this. Learn from them and what they had to go through. Chances are it was a lot worse than what we are living through right now. More than likely you will realize how good you have it in life and will be thankful for what you have.
Do you know anyone who lived through The Great Depression? What kind of lessons have you learned from them about money and finances?
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Your post reminds me of my grandparents who, like yours, were children during the depression. They were young adults during WW11 and I think that also shaped their frugal values and on top of that they were farmers. I have talked to my mom about their example and what it was like to grow up on a dairy farm. They didn’t have a lot of money, but she never felt poor. They were hard-working, self-sustaining, and very generous. They never hesitated to give food to family members in need. Maybe something good can come out of this economic crisis, maybe our country will return to the values that help shape our “greatest generation”.
Kristia@FamilyBalanceSheet’s last blog post..Family Balance Sheet participates in Festival of Frugality.
@Kristia – Sounds like we had a similar family growing up. I think this recession will put new perspective back into people’s lives for the good! Thanks for stopping by.
pfincome’s last blog post..Recession in America – Gardening
Excellent article.
@Curt – Thanks for the kind words!
pfincome’s last blog post..Recession in America – Gardening
See this is great because that method works for them but not for everyone.
You will have people that will go into debt to look good, and then you will have those who want to look good but can support that lifestyle.
So its different for everyone, I think its all about finding what your calling is, so of way to say it.
tom’s last blog post..Should you only pay off debt and not save?
@Tom – Good point. I know a few people (close family member) who still are going into debt on purpose to look good.
pfincome’s last blog post..Recession in America – Gardening
My grandmother never had a high income, but she always seem to have money.
My tip for today? Keep your rent as reasonable as possible. If you are in a marriage with a lot of debt already, having a modest amount for rent can be a huge way for you to have money to pay down debt. You can always upgrade later.
@Elle – My grandparents were farmers but always seemed to know how to stretch a dollar. Even making low income, they surprisingly probably have the highest net worth of anyone I know.