My parents raised me to understand that one must earn money, rather than just receive it. Every penny I owned was earned (other than birthday checks from friends/family). When I completed a chore, mom gave me the value of that task. Vacuuming was worth $1 per room, whereas cleaning the windows was a flat rate of $2. Since I also received money from birthdays and other holidays, mom would bring me to the bank on a regular basis. She always reminded me that while I could cash some of my checks, I should put some of it in savings for a “rainy day.” Many parents view money in an unhealthy way, so kids end up being spoiled and without any understanding of earning or saving money. I was lucky to have parents who emphasized the importance of both on me.
As an adult, I have a strict budget that I live by and I have automatic transfers setup to support my savings goals. Now that I am in the first phases of starting a business, my awareness of finances is heightened. How will I pay for the development? What is my business model for earning money from this idea? It all ties into the roots that my parents set in my understanding of money.
So many small businesses trying to launch do not have a strong financial education – no plan, budget, investments, or awareness of spending. savings goals. Women in particular fall into many of the money traps. While I never think twice about this normally, one of my business advisers has pointed out that understanding money is a major issue in the US. Financial freedom takes a work, awareness and support from others.