The Most Important Financial Lesson My Mom Ever Taught Me

Money was often tight when I was growing up. Going out to dinner was something we did once or twice a year at best, and usually, it was only for pizza. 

My parents didn't have the means to spend as freely as I do right now. Although I try to maintain a frugal lifestyle, I won't hesitate to splurge on conveniences that make my life easier, whether it's having my house cleaned by someone else or falling back on takeout meals when I'm too busy to cook.

But even though my parents didn't have tons of financial resources at their disposal, they were always very financially savvy. And I'm really grateful for many of the money lessons my mom taught me as a child and young adult.

It was my mom, for example, who explained to me how credit cards work, and who taught me how to manage the first one I got when I went to college. My mom also taught me the importance of always having money in my savings account. And that's perhaps the most valuable lesson she could've shared.

A financial lesson that's served me well through the years

When I was in my teens, I held down different jobs and did my share of babysitting. And tempting as it was to spend the money I was earning, I instead made a point to put most of it in the bank.

That was the basis of the emergency fund my mom encouraged me to build. Since then, I've added to my savings through the years, banking things like bonuses at work and tax refunds when they would come my way. And before I knew it, I had enough cash to cover multiple months' worth of bills. 

Meanwhile, my emergency fund has bailed me out of a host of financial jams through the years -- and helped me avoid credit card debt. My first car, for example, was a cheap used model in bad shape that got totaled in a minor accident. I used my emergency fund to buy myself a new car -- one that wouldn't go kaput during a 5-mile-per-hour collision. 

My emergency fund has also spared me the cost and hassle of racking up debt through a string of home repairs. Over the past 10 years, I've had to replace two air conditioning systems, a deck, a washing machine, and a water heater. And those are only the major repairs that come to mind. Each and every time, I was able to raid my emergency fund and cover those costs in full. 

A lesson I'm teaching my kids, too

A recent SecureSave survey found that 67% of Americans do not have enough money in savings to cover a $400 emergency expense. I don't want my kids to ever land in that boat. And I also don't want them to have to come running to me every time an unexpected bill pops up.

That's why I make a point to encourage my kids to build savings -- even though my oldest is only 11 and clearly isn't tasked with covering any of his own expenses. I'm extremely grateful that my mom drilled it into me that emergency savings are key. And I want to do the same for my kids to set them on a solid financial path.