Incorporating Financial Wisdom: Insights from Father Figures

As we grow into adulthood, the financial guidance we receive often originates from our formative years. For many of us, the lessons we learn from our fathers stick with us. However, in the case of Manisha, her father did not overtly teach her about saving money. In fact, the bulk of the financial advice Manisha received was more about sensible spending habits.

Lessons from the Great Depression

Although Manisha's father was never wealthy enough to save due to the Great Depression, his experiences have directly influenced her. His survivorship of a tumultuous economic era clearly influenced the financial wisdom he imparted to his daughter.

Key Financial Advice from Manisha's Father

Manisha's father, whose advice she refers to as her "dad," provided a few core principles:

No waste: The primary message was to avoid wasting money. This simple directive became the bedrock of Manisha's financial philosophy. Research and comparison: Always research and compare prices before making a purchase. This includes understanding the differences between 'must have,' 'would like,' and 'wish for' items. Long-term planning: Consider whether it’s better to spend money up front or at the end of an item's lifecycle in terms of maintenance costs. For example, buying used, refurbished, or open box items can be more cost-effective. Frugality over luxury: While luxury items may appeal, it's crucial to understand that not everyone uses items as they should. For instance, a high-end car might be more about prestige than practicality. Ordinary alternatives, like a simple phone, can serve the same purpose. Practical mindset: Manisha’s father taught her that the ability to manage small amounts of money was key to managing larger sums effectively. His advice, “Before utilising one lakh [100,000] rupees, you need to learn how to spend one thousand rupees properly. Before utilising one thousand rupees, you need to learn how to spend one hundred rupees properly. Before utilising one hundred rupees, you need to learn how to spend ten rupees properly,” emphasises the importance of honing financial skills incrementally.

Personal Touches and Innovations

While Manisha’s father provided foundational advice, she has built upon these principles over the decades. She emphasizes the continuous development of her own financial strategies, such as:

Deals and negotiations: Negotiating better prices for cars, paying in cash, or hinting that you plan to pay in cash can lead to lowered prices. Resourcefulness: Being resourceful and creative in finding alternatives can lead to better financial outcomes. Comparative buying: Always compare prices across different sources to ensure the best deal.

Real-Life Example of a Father’s Influence

A true story from a father-daughter duo illustrates these principles effectively. Ajit K. Panigrahi once told his young daughter, 'Bapa Father, I need ten rupees.' The daughter, at around 7 to 8 years old, demanded money for a pichkari (water gun), a small but significant purchase in their context. Her father asked for the reason and then questioned the worth of the ten rupees.

The father’s wise words, 'You told me you will always spend money wisely; you'll be frugal. When I would have a lot of money, I will spend it wisely. It's only ten rupees, how could I spend it wisely! ' This taught her that managing even small amounts wisely is crucial. Similarly, he added, 'Before utilising one lakh rupees, you need to learn how to spend one thousand rupees properly. Before utilising one thousand rupees, you need to learn how to spend one hundred rupees properly. Before utilising one hundred rupees, you need to learn how to spend ten rupees properly.' This principle highlighted the importance of financial literacy in all scenarios.

Through these experiences, Manisha and Ajit K. Panigrahi have both developed a deep understanding of financial management. These lessons are not just about saving money but about making informed choices and prioritizing effectively. Financial wisdom, much like any valuable skill, is best learned and honed from a young age.

Conclusion

The financial insights and teaching moments from our fathers and father figures are invaluable. Understanding the importance of saving and spending wisely, resourcefulness, and long-term planning can lead to better financial health and opportunities. Whether it’s negotiating better prices, researching purchases, or managing small amounts, these principles are fundamental.