Money Management Lessons from My Depression-Era Parents

Security for people living through the Great Depression era of the 30s was money in the bank so savings and managing their money was a number one priority. Watching my parent's money management of 'pinching pennies' made me want to have a career, make lots of money, and live a life of unrestrained spending. I never wanted my parents to be right in their money management. I found out later that they were.

Homemade is Better

In today's instant gratification society, pizza delivery abounds. It comes with a hefty price tag and a tip. Homemade meals are a lot cheaper and with planning, can last for more than one meal. Home cooking is healthier and tastier.

Cooking at home requires planning. Starting with a meal plan for several days, say a week, make a grocery list according to the meal plan, and then only purchase what is on the list. By the end of the week there will be a considerable savings on the grocery costs and healthier meals. The family will enjoy having dinner together.

Seek Bargains

When my parents wanted to buy, they did not pull out a credit card. They planned, saved, and then looked for the best bargain they could find. This took patience on their part. My father especially enjoyed telling his friends of the 'good deal' he had found. Paying cash for items was uppermost in their minds always.

Buy Used

Used items can be just as good, or better, than new. Automobiles are a very good example of this theory. Clothing can be bought at a fraction of the cost of Designer prices from resale shops and Goodwill. Let someone else pay the 'sticker' price for the item and then cash in on the savings when they tire of it.

Save

Savings were uppermost in their minds. Remember, security was money in the bank. I was raised in a rental home, until I was 12 years old. At that time, my parents built their own home and paid cash for the construction! It was a modest home but had all modern amenities and was very comfortable. They never had a mortgage payment.

There was a savings account at the bank, which was not touched, other than when they built their home. They purchased Savings Bonds with every paycheck. There was a small supply of cash in the safety deposit box at the bank for minor emergencies. Once any part of the cash was used, it was replaced immediately. This was excellent money management on their part.

Avoid Debt

Debt was never an option. If there was not cash to buy, they waited. That included vehicles.

For vacation each year my father would take an empty peanut can, make a small slit in the top, and sauder (welded) the lid back on the can. For the entire year, dimes were dropped into the can. This allowed my family to take a three-week vacation each year. We did not stay in the finest hotels; however, as a child, I had been in every state in the United States except for Hawaii.

DIY

If something needed repairs, a service man was not called. With hard work, available books of instruction or the advice of a neighbor, and sometimes borrowed tools, the item was repaired at home. If an item needed expert repairs, it was usually not bought. They used what they had, bought for quality, longevity, and simplicity. Many young adults of today do not know how to make the simplest repairs.

Frugal is Not Bad, it is a Good Thing

People that have lived above their means for many years must learn money management to live within their income. The banks, housing industry, and credit cards had made credit available to the point of being a detriment to an entire generation.

Out of necessity managing money and being frugal is now being understood and learned. It is a lot more difficult to fill a financial hole than it is to dig it. Once the lesson is learned, the next generations will be more like the people that grew up in the Great Depression. They will be better for the experience.

Source:

The Street