Editor’s note: This article is the fifth and final installment in a five-part series featuring the best advice about money from investing greats, renowned economists, top financial planners and other experts. Other articles focus on advice about managing money, saving and investing, retirement planning and family finance.
We asked a diverse group of 35 top financial experts — acclaimed investors, advisers, money managers, economists, influencers and more — to share their very best advice with Kiplinger readers. The essential question we put to them: Of all the many recommendations about money you’ve given or received, what are the best, most meaningful or most impactful tips you want to pass along?
In this article, the fifth in the series, we feature the best financial advice the experts got from their parents — directly or indirectly, by example or observation. Apparently, mother and father really did know best.
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Stick with a sure thing.
“It’s better to have 50% of something than 100% of nothing. That’s from my dad. He had a little deli, where I worked after I turned 13. Once I went to downtown Chicago with friends and bought a corned beef sandwich that was twice as expensive as my dad’s. I said, ‘Dad, I know how you could make more money: Double your prices!’ He said, ‘Suze, I’d rather have 50% of something than 100% of nothing. I have a line out my door all the time — and that’s how I keep it.’ “
—Suze Orman, author of 10 personal finance books including The Ultimate Retirement Guide for 50+ and host of the podcast Women & Money
Keep it cozy.
“My dad once told me to think twice before buying a big house. I asked why, assuming we didn’t have a big house because we couldn’t afford it. He said, ‘When you have a big house, everyone goes into their own corner of the house. You see everyone sitting together? That’s how family works.'”
—Ramit Sethi, author of I Will Teach You to Be Rich; host of the Netflix series How to Get Rich and the podcast Money for Couples
Delay gratification.
“My immigrant parents always instilled in me that I couldn’t have fun two days in a row. My dad would say, ‘Happy today, sad tomorrow… or sad today, happy tomorrow.’ My parents delayed gratification their entire lives so I could have the life they felt I deserved. That’s applicable now: Delaying gratification is what allows you to have a ‘happily ever after’ in retirement.”
—Vivian Tu, author, founder and CEO of Your Rich BFF and chief of financial empowerment at SoFi
(Image credit: Getty Images)
Spread your bets and rely on your family.
“I saw my dad’s company, a department store in Camden, N.J., go broke. I saw my parents’ financial world fall apart because my dad had all his assets in one place, in one basket. So that taught me a bitter lesson about diversification. And both of my parents needed assistance for a long time, so that taught me about longevity risk. Helping them out financially taught me about risk sharing. The family is the best insurance company around.”
—Laurence Kotlikoff, professor of economics, Boston University, and founder and president of MaxiFi, a personal financial planning software company
Take it down a notch.
“My mom always told me, ‘Money talks and wealth whispers.’ Be low-key and thoughtful, not showy.”
—Mellody Hobson, co-CEO and president, Ariel Investments
Match your tastes to your means.
“My mom used to say, ‘You can’t go through life with champagne taste and a beer budget.’ If you want to buy champagne, you’d better make enough money to afford it. When you’re a young kid right out of school, with wide eyes and a limited budget, either learn to live within that budget, or learn how to make more money.”
—Barry Ritholtz, cofounder, chair and CIO of Ritholtz Wealth Management
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Respect all types of work.
“My father always said: All honest work is good work. Doesn’t matter if you’re the CEO or the street sweeper. There’s dignity in earning your keep, period.”
—Lynnette Khalfani-Cox, known as The Money Coach, is the author of Bounce Back: The Ultimate Guide to Financial Resilience and founder of the Financial Influencer Network
New isn’t necessarily better.
“Shop used. When I was a kid, I didn’t get to buy new clothes until I was around 14, because it wasn’t in the budget. Now, shopping used is trendy, better for the environment, better for your wallet. To this day, I love thrift stores.”
—Valerie Rivera, a certified financial planner and founder of the advisory firm FirstGen Wealth
Bet on yourself.
“My dad was an entrepreneur who invested in himself, an immigrant from Mexico who came here and did extremely well. He took everything he had and kept investing in his company. So work hard, and never be afraid to take a calculated risk.”
—Louis Barajas, CFP, and cofounder and CEO of International Wealth Advisors; author of My Street Money
Don’t waste money.
“From my dad, I learned: Don’t take long showers, and keep the doors closed when the air conditioner or heaters are on. My dad used to go nuts if we didn’t keep the utilities low.”
—Mark Cuban, entrepreneur and former shark on the show Shark Tank
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Have hard talks in the car.
“The best piece of advice that my mother ever gave me, which isn’t directly about money, but can be applied to money, is this: If you need to have an important but difficult conversation, do it in the car. The car is a really good place for these kinds of talks because you don’t have to look at the person you’re speaking to while driving and they can’t leave. So for people who have a hard time talking about money, doing it when you’re in the car isn’t a bad way to go.”
—Jean Chatzky, CEO and cofounder of HerMoney Media, host of the HerMoney podcast and author of How to Money
Don’t borrow for your BA.
“My dad advised me to avoid student loans for college and instead attend the most affordable school (Penn State). There was no college savings account for me. And my immigrant parents — on principle — did not agree with the concept of going into debt for college. So this meant passing up on more elite, private schools, and I was a puddle of tears at the time. But looking back, it gave me the leg up in my financial life that many of my peers who were saddled with student loans didn’t have.”
—Farnoosh Torabi, host of the So Money podcast and author of the book A Healthy State of Panic
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The best time to save is today.
“My dad was an accountant and CFO, and the best advice I got from him was to start saving now. When I started working in high school, he wanted me to open a bank account. When I was babysitting, he wanted me to put money aside in savings. The best time to start is today, and the next best time is tomorrow.”
—Tiffany Alliche, founder of The Budgetnista, a personal finance education company, and author of Get Good With Money
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Avoid debt.
“My parents paid cash for everything, including every car they bought. It came from a working class, lower-income mindset; they felt you shouldn’t owe people money because it makes you vulnerable and you will get screwed over. It didn’t stop me from taking on debt, $100,000 in student loans, but I made sure I had a plan for repaying it, which I did in three years.”
—Brad Klontz, cofounder of the Financial Psychology Institute and managing principal at Your Mental Wealth Advisors
Don’t spend future money.
“One thing my dad taught me is ‘don’t count your chickens before they hatch.’ He always would say, ‘if you’re expecting a paycheck, don’t believe it’s there until it hits your account.’ I think many people who may anticipate a big sales commission or other payout go and spend the money in advance. Don’t do it.”
—Humphrey Yang, former financial adviser and current YouTube, TikTok and Instagram content creator
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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