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Was there an expectation to attend higher education? Did you participate in any form of higher education? If so, how did you pay for it?
Yes. Both of my parents have degrees and I went to a high school in the city that had a high graduation rate and the expectation that you would attend a four-year college afterward, either in-state or out-of-state. All through high school I dreamed of moving to the Northeast and attending a small, private liberal arts college (I had romanticized views of the schools I wanted to go to, not thanks to books and movies) but my dad really pushed me to think -State Options to avoid taking on debt at such a young age. While he and my mom set up 529 accounts for both me and my brother when we were born, due to the exorbitant prices of private schools, the account wouldn’t have covered more than a semester if I had gone out of state/private. I was mostly only considering in-state/public options, but being a very careful high schooler, I ended up getting a full offer to a private liberal arts college in the Mid-Atlantic so I was able to go out of state and graduate debt free. which in hindsight was the best financial decision I could have made for myself at 18. I currently plan to go back to school to get my master’s degree and plan to use my 529 account balance as well as work at campus as a TA or research assistant to help subsidize tuition (it’s a public school).
Growing up, what kind of money conversations did you have? Did your parents/guardians educate you about finances?
My dad is a financial advisor, so I feel like money was one of the first languages I learned. While I am very grateful for my dad instilling financial literacy in both me and my younger brother, teaching us the importance of saving, avoiding debt, different types of investment vehicles, etc., there were also signs that he had many (some unfounded) financial fears and insecurities, some of which he unwittingly passed on to me (more on that below). From the way he acted about money—as if it were scarce—and didn’t develop budgeting habits, I could never tell if the situation was as dire as he made it out to be or not. It wasn’t until high school that I realized how comfortably upper middle class my family was.
What was your first job and why did you get it?
I started babysitting when I was 12 and continued to work the neighborhood family circuit throughout middle and high school. I got my first W2 job when I was 16, working at a local restaurant as a hostess. While my parents always supported me and my “needs”, I put that money towards my “wants” as well as growing my savings account.
Were you worried about money growing up?
Not really. I think a lot of people in my generation can relate to the meme of playing Wii or Just Dance while their parents figured out how to pay the bills during the Great Depression – including my brother and me. We knew there were financial difficulties during that time (my family was a one income family up until then and my father’s job is 100% commission based and people involved in the stock market) but it never affected the way we we lived daily in a material way. A few years later my mom went back to work, which I know reduced the pressure around my family. When I was in college, I realized how wide a range there was in levels of financial security. Going to private school, the majority of my friends did not receive financial aid and their parents could pay out of pocket for four years of tuition. While I knew my family wasn’t in the same boat, my parents made smart financial decisions and I never really had to worry about them or our family.
Are you worried about money now?
Yes. One of the financial insecurities my dad passed down to me is that I never feel like I have my feet in the sea when it comes to saving. While I know I’m reasonably financially responsible, I also love to travel and haven’t put as much money into savings as I’d like, instead funding a few international trips these past few years. I know I make a decent salary for someone my age with my post-college experience, but I’ve only lived in HCOL towns and sometimes I get an overwhelming feeling that I’ll never be able to afford the things I want to afford ( a heavy retirement account, travel, future children and childcare, 529 accounts, etc.). I fight a daily battle in my mind between feeling like I am and not doing enough to set myself up for financial success. Going to grad school also means there’s a good chance I’ll have to take out student loans, which has been scary and something I think about all the time.
At what age did you become financially responsible for yourself and have a financial safety net?
During college, the scholarship paid for my housing, expenses, and a meal plan on campus, so I didn’t have to rely on my parents or work to finance those expenses. My parents helped pay for my flights to visit home and other expenses because they didn’t want me to work during the school year until I finished my degree (I had a part-time job my senior year at a local brewery and I was able to become financially responsible with these wages because my expenses were so low). After I graduated, I was financially self-sufficient for a year while living in the Midwest. At my dad’s suggestion, I moved back in with my parents about a year ago to save up for graduate school, so they supported me financially and didn’t make me pay for rent or food. Since I left about six months ago, I have been financially independent once again. However, my parents have told me that they will help me with living expenses when I’m in graduate school if I need it. I am extremely grateful to them for their continued support and feel very privileged to know that they would be my financial safety net should I ever need them (as I probably will in the next couple of years).
Do you have or have you ever received passive or inherited income? If so, please explain.
My parents set up a 529 account and an investment account for me and my brother at birth (although I haven’t touched their part yet, I will use them as I continue my graduate studies). My parents also gave me a sporadic stipend throughout college to cover various expenses (~$1,000 a semester). I am also on my parents health insurance and while I pay my own fees, they have covered larger procedural costs. On my mom’s side, I will one day inherit a beach house in the Northeast that will be split in equity between me and my 14 cousins/siblings (currently valued at $500,000).
