Personal Finance: Why Didn't My Parents Warn Me?

They taught me many valuable lessons as a child and into my young adult years, but personal finance and financial management were not their strong points. As two former hippies, they were not what you would call financially savvy. Many of their money lessons came in the form of ways to do without or ways to make more with less (which are actually quite valuable in many cases). But they weren't the kind of people who went out of their way to show me how to pay bills, explain credit card usage, discuss retirement planning, and similar subject matter. While my grandfather and uncle filled in some of the gaps, there were still a few financial revelations that weren't explained to me until much later in life.

Here are a few of the most major.

Income Taxes are How Much?

My parents were not big into sharing income information with me. This may partially have been because my mother was going to school for much of my childhood and I only spent every other weekend with my father. At the time, neither of them had what you would consider a great job, and therefore sharing the family finances wasn't too high on the priority list.

However, I think it would have helped to form and guide my future income expectations by knowing just how much they made, and in turn, how much the government took. I still remember getting my first paycheck at age 15 and being stunned by how much money was deducted for various income taxes.

This is probably information I will share with my son before he heads off to his first job, if nothing else but to reduce the shock he will likely encounter when he sees his withered and tax reduced paycheck.

Property Taxes Come Each Year

My parents had no problem telling me that Santa or the Easter Bunny was coming each year, or even that the Tooth Fairy would pay me for my old teeth, but they failed to inform me at any point during my childhood and young adulthood that we had to pay property taxes upon the homes in which we lived. And not only did my parents not mention these taxes, but they never thought to mention that like Santa and the Easter Bunny, they came yearly.

When parents wonder why their children want, want, want, all the time, it may be in part because kinds don't understand how expensive life can be. The more I learned as a young adult, the less I asked my parents for because I realized just how expensive my requests were.

It Costs a Lot to Heat and Cool a Home

Until I got my first apartment after college, I never realized just how much it could cost to heat and cool a living space. Even an apartment's electric or gas bills can get pricey pretty quick.

I don't think I ever looked at one utility bill the whole time I was living at home, and therefore had no idea that electric or gas bills could range into the hundreds of dollars each month or that we actually had to pay for water!

Your Income Really Isn't Your Income

Many moons ago, I remember my mom telling me how much money she made. At the time I thought it was a big number. Now I look back and shake my head, for several reasons.

First off, I can't believe we did all the things that we did on such a low income. Secondly, the number she gave me was pre-tax, which means we did all that stuff on even less money than I had originally thought.

Knowing now that when people toss around income numbers that they should be taken with a grain of salt, makes a big difference. It would have been nice to know when I got my first full-time job that there is a pretty sizeable dent in one's income after social security, Medicare, state and federal taxes, health insurance, and all the rest are taken out, and that the more you make, the more they take.

More From This Contributor:

Teaching My Wife About Personal Finance

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How I'm Helping Plan for a Parent's Retirement

Disclaimer:

The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.