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5 pieces of financial advice from older generations that are officially obsolete

The economic landscape has changed. A lot.

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What made financial sense decades ago doesn't necessarily make sense now.

Economics can be complicated, but there's one simple truth that's undeniable—today's financial landscape looks vastly different than it used to. Not only has the economy shifted in ways that make basic living more expensive, but the way money even works has changed a lot in just one generation.

Cash is out. Crypto is in (maybe, sometimes, depending on who you ask), and credit cards have become the standard form of payment for everyone. No one balances a checkbook anymore, and young people don't even know what that means. Sewing your own clothes used to be a way to save money, but now the cost of patterns and fabric have made sewing a somewhat expensive hobby, not a frugal hack.

A lot of the financial wisdom previous generations held dear simply doesn't apply anymore, as evidenced by people's responses to a question, "What financial advice from our parents' generation is officially dead?"

from Frugal

Here were some of the most common responses:

1. Get a college degree because it'll guarantee you a good job

"My parents didn’t say this but plenty in their generation did: “It doesn’t matter what your degree is in, just get a degree and there will be plenty of jobs available when you graduate.”

"The Millennial experience was being told we have to go to college; find something you enjoy doing and expect jobs in it; don’t worry about loans, there’s plenty of money out there. And then being yelled at and mocked when we come out with debt, dumb degrees and shitty jobs."

"My parents told me to just get a college degree and not worry about finding the perfect major. For them, just having a college degree opened doors. My advice to my son will be to be very intentional in the degree he chooses. Today you need to make sure your college degree will lead to employment."

college, graduation, diploma, jobs, college degree A college diploma isn't the golden ticket it used to be. Photo credit: Canva

Current reality: With the cost of college tuition skyrocketing over the past few decades and wages not keeping up with cost of living expenses, "college will guarantee financial comfort" simply isn't true anymore. A college degree might result in a well-paying job, but it might not. Indeed reports that Bureau of Labor Statistics data shows that "on average, those with four-year degrees still earn more than their trade school-educated counterparts," but with trade jobs being in high demand and some of them earning high salaries, college isn't necessarily the best path to financial success for everyone.

2. Keep a stash of cash under your mattress or in a shoebox

"The old classic 'shoebox under the bed' has been dead for a while, but people still do it. If you want to keep a couple hundred bucks in cash for an emergency, knock yourself out.

But my mother in law has like 20k stashed in my wife's childhood room and has had it there for years and years. Absolutely kills me but she won't even consider any other options."

"I had a friend who had $15k in cash stashed in her house, and then she got robbed. Of course, the thieves found the cash. Guess what homeowners' insurance doesn't reimburse you for when your house gets robbed? They paid her back $1000 of the $15k and that was it."

cash, money, stash of cash, money under mattress, savings People. used to keep money under their mattress "just in case." That's not really the best advice these days. Photo credit: Canva

"Back when I was doing finance at a car dealership I had a couple come into my office, finish all the paperwork, and then set $27,000 in a plastic shopping bag on my desk. I about crapped my pants. They had been carrying this bag of money throughout the sales process. I advised them to never do that again. They just hated banks."

"That 20k invested in an S&P index fund at a yearly average return of 10% would be $134,550.00 after 20 years. Left in a shoebox it’s…. 20k."

Current reality: A federally-insured bank is the safest place to keep your money. The need for actual cash has become less and less relevant as credit and debit cards are accepted almost everywhere, and keeping a large amount of cash around is risky. If cash is stolen, there's nothing you can do about it. If someone steals from your bank account, there are protections in place. Plus, keeping lots of liquid cash means missing out on investment returns.

cash, money, banks, investments, liquid cash, credit, debit im rich cash money GIF Giphy

3. Be loyal to your company—it'll pay off

"'Loyalty pays off in the end' and 'Don’t change workplaces; try to stay at one place for your entire career' also 'Only change positions if it’s a vertical move. Don’t change positions if it’s a lateral move.' None of this is true any longer."

"A lot of people believed this at my last job. So much so that many stayed on for 20+ years. Earlier this year, this group became known as ‘highly tenured’ and was offered a voluntary retirement package. In many individual instances (such as mine) it wasn’t exactly ‘voluntary’. Maybe loyalty meant something at one time but definitely not anymore!"

"'Stick it out and put in your time' at a job you hate. The implication being, of course, that if you work hard for an employer and stay the course, you’ll be better for it. Those days are over.

company man, loyalty, jobs, working, employment Company loyalty doesn't pay like it used to. Giphy

Current reality: Millennials and Gen Z have gained a reputation for "job hopping," whereas previous generations were rewarded by staying with the same company long-term. But even in 2014, Forbes reported that “staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.” Current wisdom says that job hopping will help you earn more.

4. You shouldn't be living with your parents after college

"I feel like the conventional wisdom about moving out on your own has changed since I was a kid. When I was growing up it was understood if you were still living at home past your early 20s/college graduation that meant you were failing at life. These days I know people in their 40s still living at home because they can't afford to move out in today's environment."

"Yup. I know a few people who have adult kids living with them because they can’t afford to live on their own after college. Rentals in my state are absolutely insane, and when you combine that with college loan repayments? Forget it."

"As someone who is living at home in her thirties the stigma has dropped like a rock since COVID. I was given more shit for living at home at 22 than I was at 32. My parents had a car accident this year and the doctors were over the moon there was an adult kid at home to sort everything out."

"That's one practice I am grateful my immigrant parents never assimilated, and the fact I have a good relationship with them. Their was no expectation to move out until I was engaged / married. Multi-generation households make so much sense when it comes to saving money and pooled resources."

living at home, multigenerational household, living with parents, new economy, cost of living Lots of adults are living at thome after college. Giphy

Current reality: According to data from Sallie Mae, 64% of college grads are still living with their parents within the first two years of graduation, and 35% are still at home between three and five years post-grad. Living at home has become a financially wise and socially acceptable decision—it no longer means you're a lazy loser without the ability to support yourself.

5. Stay away from stocks (or even 401Ks)

"The advice from my depression-era parents. Stay away from stocks, they will always crash and you will lose your shirt. Guaranteed."

"My boomer mother: 'Putting your money in a 401k is gambling. You might as well take it to the casino or throw it away.'"

"My grandmother refused to try to understand why we had 401ks that were invested in stocks. 'All those Wall Street crooks do is steal your money!' She also couldn't understand why we didn't just keep all our money in a savings account in the bank, even when we explained that our bank savings account was only giving us .03% interest."

"That was also the advice I got from basically all my coworkers when I first started work after college in 2009 regarding a 401k. I had enough sense and luck to ignore them and still contribute, but I did put less in than I could have. I don't think I would have been able to retire yet, but would have been much closer than I am now."

401K, investing, investments, retirement, savings Investing for the future looks a bit different now than it did a couple of generations ago. Photo credit: Canva

Current reality: Some people who advise against investing in the market came from the Great Depression or felt the sting of some other major downswings in the stock market during their lives. For sure, all kinds of investments are risky to varying degrees, but in the absence of pensions, if you ever want to retire, investing is pretty much the only way to do it. The stock market isn't the only way, of course, but it does have an average 10% return overall over the past century. And 401Ks aren't necessarily tied to the stock market; there are lots of safer ways to invest your retirement funds these days.

One commenter wrote of our elders' financial advice that's aged like milk, "Almost all of it. Because the world their advice is based in no longer exists." That's really the crux of it. We can look to our parents and grandparents for all kinds of wisdom born of experience, but when it comes to financial advice, best to look to the experts who have a better understanding of our current economic landscape.

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Teaching financial responsibility: the smart case for giving your child a credit card

“Helping your child build their credit score is an invaluable gift."

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Nearly everything is purchased online these days.

With their colorful designs, customizable parental controls, and growing popularity among peers, it’s no surprise that kid-focused debit and credit cards have become increasingly appealing to families with young ones. Gen Z and Gen Alpha live in a vastly different financial landscape from their parents, and now, digital payments have largely eclipsed cash transactions. From concert tickets to food delivery to school supplies, nearly everything is purchased online. So, how can parents prepare their children for this new digital frontier and financial world that they themselves have not even experienced?

Ask the average parent about giving a credit card to a child, and they'll dream up a nightmare scenario: spoiled kids making endless purchases, unchecked impulse buying, mounting debt, and the development of poor financial habits. However, for the first generation growing up in an almost entirely cashless society, it makes sense for them to understand the value of money and how it’s used sooner rather than later.

Money, tree, financial responsibility, independence, financial literacyThe goal is financial independence. Photo by micheile henderson on Unsplash


According to a 2019 CreditCards.com poll, six million American parents have at least one minor child with a credit card. Winnie Sun, co-founder and managing director of Sun Group Wealth Partners and member of the CNBC Financial Advisor Council, gave her three children credit cards before they entered kindergarten. While this might seem extreme, she believes these early financial practices helped her children develop healthy money habits. In her Op-Ed for CNBC, Sun notes that her own parents added her to their Visa Gold card when she was 13 years old.

"My mom specifically told me that it was for emergencies, or if I had permission beforehand to use it," Sun recalls. "She thought it was a way to help her daughter in case she needed money, but what she didn't know then was that it also helped me learn how to handle credit early in life.”

Credit card, finance, debit card, swipe, financial literacyEarly financial education is crucial. Giphy

Financial experts are increasingly convinced that young adolescents should be included in conversations about money, recognizing that early financial education is essential for navigating today's digital economy. But when’s the right time? Andrew Latham, a certified financial planner with SuperMoney, explains that parents should assess readiness based on specific criteria.

“Parents should consider their child’s ability to handle financial responsibilities, understanding of money management and the overall need for a card. If a child can budget their allowance and has consistent needs to make purchases independently, they may be ready for a card,” he explains.

And which option is better for kids: debit or credit? Well, there are distinct advantages and potential drawbacks associated with both, which parents should consider carefully.

Credit cards

The primary benefit of getting your child a credit card is building a credit history. Credit history length makes up about 15% of your FICO score and up to 20% of your VantageScore. A longer credit history shows that someone has managed their accounts responsibly over time, demonstrating reliable financial behavior. As a result, lenders and credit card companies are more likely to approve applications and offer better terms to those with an established, positive credit history. By adding your child as an authorized user on a credit card with consistent, on-time payments, you can help them build strong credit from an early age.

Child, strong, financial literacy, credit score, money You can help your child build strong credit. Photo by Ben White on Unsplash

“Helping your child build their credit score is an invaluable gift,” writes Jae Bratton for NerdWallet. “A good credit score may help them secure a job, get lower interest rates on loans and, when the time comes, a top-notch credit card of their own.”

However, there are risks. Children under 18 cannot legally have their own credit card; they can only be authorized users on a parent’s account. As the name suggests, authorized users are allowed to use the card, but aren’t responsible for paying the bill. Therefore, parents will ultimately be responsible for all charges made on the card. If your child makes an expensive purchase, it could potentially affect your own credit utilization ratio and even damage their credit score. Jessica Pelletier, Executive Director of FitMoney, a nonprofit that provides free financial literacy curricula for K-12 schools, advises parents to remind their children that “there are firm limits…in place for authorized users.”

Debit cards

On the other hand, debit cards offer a more flexible yet tangible way for children to understand how to manage spending money. For Matt Gromada, the head of youth, family and starter banking at JPMorgan Chase & Co., he believes that early debit card access is a crucial component to lifelong financial literacy.

“Having a debit card opens the door for important conversations and real-world scenarios about the basics of finance—from spending and saving to explaining interest and how it accrues. It also gives your child a sense of pride, independence, and freedom, providing an opportunity for real-life experiences and learning,” he says.

Breaking free, financial literacy, debt, money, money management Break free of financial debt. Giphy

With debit cards, kids are limited to the amount of money available in the account, so they can't overspend beyond what is in the account. There are even modern debit cards specifically designed for kids, such as Greenlight, which offers a range of features that make parents and children feel secure and in control. There is no minimum age requirement for users, and parents can restrict spending at certain stores, set up safety SOS alerts, receive real-time notifications, and turn the card on or off remotely. This is also an easy way to transfer allowances to your child.

According to BECU, a financial cooperative, “a debit card can help your child learn financial responsibility basics such as keeping a card in a safe, dependable location, staying within spending limits, using a card for purchases, checking on balances, and monitoring for fraud.”

Of course, the main drawback of debit cards is that they don’t help establish or build a credit history. So, what’s right for you and your family? Start a dialogue today and discuss the best option for your children.

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Only 4 percent of Americans can answer these 7 financial questions correctly. Can you?

In the current economy, financial literacy is more important than ever.

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A quiz reveals some holes in Americans' financial literacy.

Financial literacy is always important, but in uncertain economic times, it's vital. The financial world is complex and multi-faceted, and there's no exact gauge of what you need to know in order to be considered informed. There are, however, some financial fundamentals that everyone needs to understand on a basic level in order to avoid making catastrophic money decisions and to be able to follow what's happening with the economy on a larger scale.

Unfortunately, many Americans have never taken an economics class and aren't well-versed in things like inflation, investments, interest rates, and other economic realities. To be fair, economics can be confusing even when you try to learn, but without understanding some basic concepts, it can make a huge difference in your financial wellbeing.

financial literacy, money, finances, economics, economyMany Americans need to increase their financial literacy.Photo credit: Canva

The non-profit FINRA Investor Education Foundation surveyed 25,500 adult Americans and asked them to take a seven-question financial knowledge quiz to test their financial literacy. The results were a bit concerning, as only a small fraction of quiz-takers answered all seven questions correctly.

Here are the questions they asked:

1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

More than $102

Exactly $102

Less than $102

Don't Know

2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

3. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?

4.True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.

5. True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.

6. Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn't pay anything off, at this interest rate, how many years would it take for the amount you owe to double?

a) 0 to 2 years

b) 2 to 4 years

c) 5 to 9 years

d) 10 or more years

e) Don't know

financial literacy, math literacy, economics, finances, money managementSome financial literacy is just math literacy—understanding percentages and probabilities. Photo credit: Canva

7. Which of the following indicates the highest probability of getting a particular disease?

a) There is a one-in-twenty chance of getting the disease

b) 2% of the population will get the disease

c) 25 out of every 1,000 people will get the disease

d) Don't know

"Don't know" was an option for each question, and the average correct score across the Americans who took the quiz was 3.3 out of 7. Nationwide, 27% of people who took the quiz got the right answers on at least five of the questions, and only 4% aced all seven questions.

- YouTubewww.youtube.com

Which states fared the best and worst? Here are the 10 top states by percentage of survey respondents that correctly answered five or more of the quiz question:

1. Minnesota (34.78%)

2. Wisconsin (34.46%)

3. District of Columbia (34.41%)

4. Colorado (33.89%)

5. Wyoming (33.85%)

6. Washington (32.54%)

7. Vermont (32.34%)

8. North Dakota (32.00%)

9. Oregon (31.86%)

10 Kansas (31.44%)

And here are the bottom 5 by the same metric:

New Mexico (23.2%)

West Virginia (21.4%)

Alabama (20.2%)

Mississippi (19.2%)

Louisiana (18.1%)

One piece of good news: Americans' understanding of inflation has increased significantly since the last time FINRA did a similar survey in 2021. (Or maybe that's not such good news, as it's likely a better understanding that came from experiencing an inflation crisis, but learning is learning.)

"Overall, the findings show that knowledge of everyday financial concepts remains a challenge for many Americans. The wide disparities in financial knowledge across states demonstrate that more work is required to empower all Americans with the skills and tools to make informed financial decisions and safeguard their investments,” said Gerri Walsh, President of the FINRA Foundation. "The increase in the number of respondents who correctly answered the question about the impact of inflation on savings is an encouraging sign, likely reflecting the impact of lived experience as well as increased focus on the topic. However, continued efforts are needed to ensure all Americans fully understand the effects of economic factors on their personal finances."

Not only does a lack of financial knowledge have the potential to impact people's personal finances, such as getting into credit card debt trouble or choosing unwise investments, but not understanding how things like inflation and the relationship between interest rates and investment markets can lead people to vote for politicians with questionable economic policies. How can you believe a politician will be good for the economy if you don't understand what factors contribute to keeping the economy stable and strong?

You can take the quiz yourself here and see how your knowledge compares.

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People reveal their 'stupidly expensive' purchases that were worth every penny

Some things are genuinely worth paying good money for.

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People share things they're happy they splurged on.

"You get what you pay for" may be a popular saying, but it's not always true. Sometimes a bargain-priced item turns out to be a quality purchase and sometimes supposedly "high end" items turn out to be no better than their cheaper equivalents. Figuring out what's worth paying extra money for and what's not is an ongoing dilemma in this age of having everything under the sun available at our fingertips.

However, some people feel strongly about certain items being 100% worth every penny, even when they cost a whole lot of pennies. So, when someone asked, "What's a stupidly expensive adult purchase that you now swear by that you would buy again in a heartbeat?" thousands of people weighed in with their favorite splurges, from the practical to the sentimental.

Here are some of the top responses people agreed were worth spending a little extra of their hard-earned money on.

socks, expensive socks, darn tough socks, cozy, clothingIf you think socks are socks, think again.Photo credit: Canva

$20-$30 socks

"I paid 80 dollars for three pairs of socks because I didn't look at the price. I just comfortably assumed I could happily afford it. That was about 6 years ago and I've just had to get rid of the first pair. Worth every penny. (Big thick merino wool ones that I wear with my work boots.)"

"I never realized how much difference there is between average socks and good socks until I discovered Darn Tough. $25+ is a lot of money for a pair of socks, and they're worth every penny. The unconditional lifetime warranty seals the deal for me. I realize this sounds like I'm trying to sell some socks, but I'm really not."

"If the word socks is ever uttered around my mother she WILL proceed to give the full sales pitch for darn tough socks and their lifetime warranty. I have these socks. I am still informed of the warranty at least 2-3 times a year by her."

"My dad was a mail carrier and would buy these special socks from their supplier. I swear the bottoms were almost an inch thick. They felt like wearing slippers and were so soft. He swore they were like 20 bucks a pair, which was crazy in the early 2000’s. He bought me a few pairs one year and I wore them for like 5 years and was devastated when they eventually ripped or got lost."


mattress, good mattress, good night's sleep, quality bed. restYou spend a third of your life on a mattress, so you want it to be a good one.Photo credit: Canva

A good mattress

"A high-end mattress Like, borderline 'do I need to finance this?' expensive. I used to think any mattress would do, but once I got one that actually supported my back and kept me cool at night? Life changing. I sleep like a pampered cat now. No regrets."

"Yes!!! In 2012, I bought a Stearns & Foster mattress set that I could barely pay for. I think it ran me around $1200? And it still feels wonderful 13 years later. It also has a 25-year warranty."

"As someone about to replace their mattress, this is a sign from the universe to splurge. There’s the old saying: spend money on the things between you and the ground (mattress, shoes, etc)."

"For folks that want this kind luxury: The Kirkland Signature mattresses at Costco are made by Stearns and Foster and they usually go on sale around once per year. Got a queen in 2024 for ~925 bucks."

bra, expensive bra, bra fitting, getting a bra that fits, bra sizeA good quality bra that fits is priceless.Photo credit: Canva

A decent bra (that fits well)

"As a woman, decent bras. The outlay is painful up front but the whole point is, nothing afterwards is. No digging in. No weird cup spills. No loosening throughout the day until it's pointless. No exposed wires after a week. No torn hooks after a couple of washes. Buy a good bra. You deserve it. Your girls deserve it. Your back deserves it."

"I used to go to a place that went as far as tailoring your bras. They closed. All the bra shops closed. The knowledge of fitting bras is disappearing. It is Very sad for all of our breasts. If you get the right fit you feel like you're not wearing anything."

"Good bras are sooooo worth it. Changing from an ill-fitting bra to a properly-fitted one makes most women look like they lost 10-20 pounds!

My favorite gift for a new college grad, a special birthday, to celebrate a new job or a divorce is a trip to Nordstrom (or a specialty lingerie store) for a fitting. I buy them at least 2 perfectly fitted bras.

"Before the Nordstrom visit, many friends poo-poo the idea as unnecessary saying ' my bras are fine.' But as soon as they're wearing the new bras regularly, they can't believe how much [more] comfortable they are, and how many people comment, asking them if they lost weight."

"I’m a horticulturalist, so I bend and move a lot for work. I finally ditched my old Target bras that were loose and itchy. I splurged on bras made for gardeners from Duluth Trading, and oh my lord, why didn’t I do that sooner!"

professional movers, moving, hiring movers, bras, good brasProfessional movers make moving so much less stressful, physically and mentally.Photo credit: Canva

Professional movers

"Professional movers. Greatest luxury item I’ve ever spent money on."

"I moved for work a few times and the company would come to my house and pack everything up. They would individually wrap every plate and cup, it was crazy."

"Even just having plenty of energy to direct what rooms to put boxes in, being able to unpack essentials as all your stuff is brought in is worth its weight in gold."

"Yes! We packed, but paid for movers. Planning on doing it again next time cause that was so freaking worth it! We moved to another apartment in the same city so it wasn’t a long trip, but even still they had that entire apartment packed, moved and unloaded in like 7 hours with an hour lunch break so really done in 6 hr. It would have taken me and my husband probably 6 hours to just move the sectional, some shelving & the washer and dryer."

cleaners, professional cleaning services, house cleaners, splurges, worth itCleaners save time, stress, and sometimes even relationships.Photo credit: Canva

Cleaning services

"Monthly cleaning service!!!! Best non-required use of my money to date."

"Same here! I do bi-monthly. I was killing myself working 9+ hour days and trying to keep a clean house. I haven’t cleaned a bathroom since."

"I didn’t realise the mental load that cleaning carried or the weight of resentment for having to do it until I outsourced it. Best decision I’ve made in a long time."

"Yard service for me. Instead of a couple sweaty hours followed by a couple days of bad allergies, I now send a couple texts, transfer some money, and it's done."

cat, pet, vet, vet bills, veterinarianVet bills can be painful, but are 100% worth it.Photo credit: Canva

Vet bills

"The vet bill for my rescue cat's teeth removal. $5,000 all told. Ended the agony of stomatitis and saved his life. That was about 7 years ago and he's sitting on my lap right now. 🥰"

"$750 for anti-venom in 2007. She finally passed in 2019. I was a teenager when I foot that bill, it was everything I'd saved. Never regretted it for a second."

"I had a cat with a dead kidney and paid around $7k throughout her extremely short life because of her congenital kidney disease. She passed at 19 months after her dead kidney was removed and the remaining kidney started failing. It took all of the money I had left from my divorce and was saving, plus any other savings I had, and I still had to put some on credit.

I would do it again to get those extra months with her when she was feeling really good. I don’t think she had actually ever felt good before her nephrectomy. I love her and she saved my life, so I did what I could for her."

"We spent about $900 for an at-home euthanasia for our cat. We didn’t want him to be stressed out and scared in his last moments. 1000% worth it. This was after spending about $9k trying to save his life. Kidney disease/cancer can just f__k right off."

"Ours was $350 when we REALLY couldn’t afford it. Never again any other way. I love the idea of the lighting of the candle in the vet’s office for those in need, but home is the way to go."

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