May 17th 2024.
Originally Published July 18, 2019
Meet Tiffany Aliche, also known as "The Budgetnista." She has built a successful seven-figure business by sharing the financial lessons she learned from her parents. As the founder of The Live Richer Academy, she now spreads her message all over the world.
Aliche's story is a testament to the long-lasting impact that parents can have on their children's financial decisions. Her father, who worked as a CFO and accountant, made it a priority to instill a positive relationship with money in his children. And to this day, his teachings continue to guide her in how she saves and spends her money.
In a recent interview with BLACK ENTERPRISE, The Budgetnista shared some of the money tips that her father taught her. These tips can help parents set their children on the path to financial wellness from a young age.
One of the most important lessons Aliche learned from her father is to manage credit card balances wisely. According to a report by Clever, credit card debt is the most stressful type of debt for Americans. And for millennials, it comes in second only to student loan debt. But by paying off your credit card balance in full every month, you can avoid the burden of hefty fees and interest payments.
Aliche herself never had credit card debt because her father taught her early on in college to pay off the full balance every month. She believes that parents should educate their children on how credit cards work and how to use them responsibly before they even get their first card.
Another valuable lesson Aliche's father taught her was to think twice before buying a new car. Instead of getting a brand new car, which is a depreciating asset, Aliche saved up for a year and bought a used car for $5,000 in cash. This not only saved her from a car note but also lowered her insurance costs to just $62 per month.
When considering your first car purchase, Aliche advises looking at the monthly costs and how they will affect your finances. As new cars depreciate faster than used ones, you could end up owing more than the car is worth in the long run.
Aliche's father also emphasized the importance of starting to save for retirement early on. As soon as she graduated from college and landed her first job, she inquired about retirement plans. Luckily, her company had a 403b plan with a matching program. Aliche believes that it's our responsibility to take care of our future selves and has even given her future self a name, "Wanda." She makes financial decisions with "Wanda" in mind and encourages others to do the same.
For those looking to start saving for retirement, Aliche suggests working with a financial advisor and exploring target-date funds. And for parents who want to set their kids up for retirement success, opening a retirement savings account and aiming to accumulate $1 million before they turn 50 can be a great strategy.
In conclusion, Aliche's father's teachings have played a significant role in shaping her financial decisions and success. And by passing down these lessons to their children, parents can help set them up for a financially secure future. As former NBA player Dwyane Wade said, "It's not about how much money you make, it's about how much money you save." And with the right guidance, we can all learn to manage our money wisely and achieve our financial goals.
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