We all know the Dad stereotypes – cringe-worthy jokes, solid sports references, random facts that no one has ever heard of, and (our personal favorite) fatherly financial wisdom. In honor of Father’s Day, we asked some of our Turbo Dads what’s the best financial advice they have received or given. From never spending less than you make to keeping your credit card balance low, here are some of our favorites!
“My dad had one piece of advice about money but I never forgot it: If you spend 95% of what you make, you’ll always have enough money. If you spend 101% of what you make, you’ll always be broke. That 6% difference is only a few thousand dollars, but makes a world of difference. My kids are still young, but I try to teach them to save for things they really want. Whenever they spend their money on something, I take a picture of it along with the money they spent. When they want to buy something, I show them the photos of their last few purchases and we talk about whether they were things they really care about. I also help them maintain spend-save-share buckets. When I explained that the share bucket is for kids who can’t afford toys, or even warm blankets, my 6 year old said he wanted to put 100% of his money in the share bucket. Almost broke my heart. ????” – Ryan S., Director of Product Management
“I really enjoyed reading the book “Rich Dad, Poor Dad” by Robert Kiyosaki. I first read the book when I was in my early 30s and I’ve read it several times since then. I wish I had read it earlier in life and it will be on the “must read” list for my kids as they approach adulthood. The book challenges conventional wisdom by teaching some interesting lessons about the definition of an asset compared to a liability and how to manage cash flow – including how to “pay yourself first”. The author encourages people to take risks and gives tips on how to avoid falling into common traps that force many people into a lifetime of debt. My kids are still young (11 and 9 years old) but I think the material in this book is timeless and I hope to have meaningful conversations with them about it as they mature..” – Jon K., Manager 3 Development
“Spend less than you make… start saving now.” – Justin M., Chief Design Strategist
“The financial advice I plan to pass on to my son came from my mom. At around 10 she took me to open my first bank account and told me that when I get paid to “save half and spend half”. As an adult that ratio is not really realistic, but the point is to save for the future and pay yourself first. Following that guidance, I’ve always been a saver and that has been a solid base to build my finances.” – Scott N., SW Engineer
“Never carry a credit card balance – don’t buy it if you can’t pay it off at the end of the month.” – Ryan B., Marketing Manager
“We try to teach our two daughters about money by having them do chores for work, and try to get them to have three buckets, save, give, and spend. Often we aren’t the best at doing yet though. ☺ We also have started sticking to a budget, so we tell the girls if they want something ‘now’ we say no, it’s not in the budget. In the future I want to get them in on planning the budget, and showing them where my salary goes.” – Lucien D., SW Engineer
“I think the biggest piece of advice I’d like to pass on to my kids is that a financial education is super important – probably more important than what you pick for a major, or where you go to school. I’ve seen friends and colleagues who are absolutely brilliant, but don’t manage their money well – and it affects your quality of life. I’ve also seen friends who aren’t highly successful in their careers, but they managed their money well, and have a great quality of life. How you manage your money often is way more important than how much money you make in total. I’d also like to be open about the mistakes I’ve made, and what I’ve learned from those mistakes.” – Justin W., Manager of Strategic Partnerships
“I hope to pass on to my kids that the best way to stay out of debt is to live within your means. Part of this is how to distinguish between wants and needs, and only buying things you want when you have the available cash flow.” – Steve B., SW Engineer
Have your own financial advice from good ol’ Dad? Share your story in the comments or tag us on social with #FinancialWisdom. When you’re done, don’t forget to give him a call and say thanks!