MONEY MATTERS: Two financial lessons I learned from Mama and Papa when I was a kid

If I were to be asked what two lessons on handling (cash, money) my finances I learned from my parents in the past, it would be that:

1. SAVING SAVES.

I was born to parents who had problems budgeting our monthly income before. 10 to 15 years ago, their spending habit was a bit "regularly overwhelming", enjoying the fruits of their labor after working their asse* all day long.

I was in third elementary grade then when I first observed what happens to a family when it runs out of cash - it's heartbreaking. At a young age, when the multiplication table was once one of my interests, I felt I needed to do something. Being the eldest, I knew I had to take responsibility for my brothers (and perhaps for my parents as well; it's kind of amazing you may say, but I don't know ganito lang talaga ako).

I thought what if one of my siblings gets sick? Where would they get the money? If my Papa, who contributes a bulk of the family's income, gets sick, where would we get funding for our tuition fees in school (back then, my parents knew education was key; they enrolled us in private schools)?

So, the simplest thing I could do was really to be thrifty (this word I didn't know of until I entered high school). I cut my baon (yes, elementary baon) and place what I saved behind picture frames, within the pages of the Bible (because back then, I thought the money would grow haha) and some magazines, inside jars and my alkansiya (flash forward to 5 years after, which was then stolen by our kasambahay).

There came a time that saving did save us from starving for a day! At that time, my parents' salaries (which were relatively low compared to what was then offered in Metro Manila counterparts) haven't been released yet, and we literally had nothing.

On that memorable day, my eagerness-to-save-the-day attitude hyped, and I told them not to worry 'cause I had a backup savings. I opened the back of the photo frame, and viola, my money brightened the day's mood. We were able to eat at that moment. Hence, from that day and on, saving became my happy habit. :))

There were even instances my Mama, Papa and siblings would be surprised that at just 9 or 10 years old, I was able to give them gifts on their birthdays.

At present, we're no longer having really deep financial struggles - just humps and bumps. In a few years' time, we'll be financially well-off, I hope - thanks to saving!

2. AS MUCH AS POSSIBLE, DON'T MAKE CREDIT (UTANG). 

The second thing I learned from them is not to owe money from someone or make credit; this is the reason why we don't have credit cards (except Papa when he has to purchase something asap and he has no cash with him). I'm not campaigning for a snub of credit cards; these can help too (only when you know you're capable of settling your financial obligations ON TIME).

I always made sure that I won't borrow money, if I have no money with me. Probably my shyness has helped me deal with extravagant spending hehe. 

Today, with no debt to worry, I still live below my means; living below my means doesn't mean I'm not eating well or what. It only means I make financially sound decisions when it comes to my finances. As a student, who has gone through algebra and the higher math, I should know my limits. And by knowing my limits, I can figure out ways to reach these limits, and set new ones. 

If I can't afford something right now, pretty sure that by not spending the money I have today or by not making utang, I'll be able to buy something that's way, way better in the future. :)

P.S. Hope you guys enjoyed reading this short post. If you did, please like Spotlight Philippines to get updated with what I do in life financially. :)

P.P.S. If you're interested in reading more life-based money stories, here are some of them:
5 Awesome Tips to Help your Parents in your Finances

5 steps that may help students (actually anyone) become rich (Part 1)

5 steps that may help students (actually anyone) become rich (Part 2)