My baby boomer parents knew how to stretch a dollar. Juggling three kids, a mortgage and a couple of car loans on a middle-class income in the late ’90s was an exercise in frugality. 

We grew up hearing “Money doesn’t grow on trees” like every other kid. But when my older brother suggested our dad get more “free” money out of the ATM, the true money management lessons began. 

From my folks’ perspective, teaching healthy financial habits would have a positive influence on us as adults. That worked out pretty well for my brothers and me (here I am writing about personal finance). But not everyone in my generation shares that experience. Over 34% of Gen Zers say their parents did not set a good financial example for them, according to WalletHub’s Generational Finances survey. 

Younger generations face many objective obstacles that make it difficult for them to be financially successful, including rising living costs, student debt and high inflation. Still, it’s never too late to build solid money management skills to help your future self. 

Everything I know about saving I learned from my parents 

When I was 15, I pitched the idea of studying abroad in Ecuador through the local Rotary Club. My brother had done it a decade earlier in Chile, so my parents weren’t shocked by the idea. However, before I approached them, I made sure I was fully prepared: I had already been accepted to the program and had the funding lined up. I was ready to be fiscally responsible and autonomous, and it was all due to their money lessons over the years. 

Little did I know that the tips and mentorship from my boomer parents would translate beautifully to my career as a personal finance writer. So, I sat down with my folks to talk about what they taught us about money growing up. 

Tip 1: Pay your bills before you pay yourself

Every time I get paid, I hear my mom’s voice saying, “Pay your bills before you pay yourself.” I’ve carried this message with me because it emphasizes the importance of sticking to a budget. 

“Budgeting was a regular household activity because we didn’t want you to think of it as a chore,” said Kelley Hall, aka my mom. “It was normal to sit down and talk about our goals because we wanted you to visualize the payoff.” 

To this day, I feel more in control of my finances through budgeting (I use the classic pen-and-paper approach, but many of my CNET Money colleagues prefer budgeting apps). I start by setting aside a portion of my paycheck to cover the necessities: rent, utilities, groceries and student loans. Then, whatever is left is my discretionary income for nonessential items.

Tip 2: Distinguish wants from needs 

I used to cry in the backseat of my mom’s minivan because I wanted the trendy thing everyone at school was raving about. My mom would patiently say: “I want a lot of things, but do I need them?” I probably didn’t understand the sentiment back then, but my mom had an excellent point. No, I didn’t need Ugg boots in July in Texas. 

Now, whenever I see something new or scroll through Amazon, I constantly ask myself if the coveted item is a want or a need. To avoid overspending, I usually let a potential purchase simmer for 24 hours before I cash out. It also helps me set long-term goals if there’s a new pair of shoes (i.e., Doc Martens) I actually want to save for. 

Tip 3: Build credit, not debt

When I went to college, my parents encouraged me to get my first credit card because they wanted me to understand the importance of building credit. But my mom also made sure I wasn’t abusing the card by spending what I didn’t have. 

“I used to always tell you not to use your credit card unless you know you can pay it off in two payments,” my mom said. “If you get stuck in a cycle of just paying the minimum payment, you’ll end up building debt and not credit.” 

Today, in my late 20s, I only charge what I know I can cover and repay in full. If I start using my credit card when I don’t have the funds to pay it off, I’ll be hit with steep interest charges. And the last thing I want is debilitating credit card debt. 

Tip 4: Don’t touch your savings 

I didn’t have a piggy bank growing up. Instead, I had a giant mason jar with a map stuffed inside because I was obsessed with traveling the world. For years, I’d fill the jar with loose change and any money I made from babysitting gigs or household chores. Eventually, my parents got me a savings account. 

“That was probably your very first lesson on savings,” my mom said. “You were around 10 years old and saw the value in setting money aside for a big goal.” 

Today, I keep my savings account separate from my everyday checking account because we’re less inclined to spend what we don’t see. If I was looking at a mason jar full of cash every day, I would be tempted to spend it and not save for an emergency. 

Tip 5: Manage your debts so they’re easier to handle

When I applied for financial aid for college, I remember feeling quite anxious about taking on debt. Even though I wouldn’t have to pay my student loan debt for many years, I thought about the logistics of paying off that balance. That’s when my parents started talking to me about debt management. 

My dad remembers what his father told him as a kid: Your money is supposed to work for you. “That piece of advice can be applied to a lot of things, even debt,” said Chuck Hall, aka my dad. My dad passed on my grandfather’s wisdom to me. If you have debt, don’t avoid it. Make it a regular part of your budgeting so it’s more manageable. 

One way I manage my debt is by negotiating the due dates on my recurring bills. This helps me spread out my payments so I’m not broke right after my paycheck hits my checking account. 

Listen to… your parents? 

Baby boomers own more than 50% of the wealth in the US. Sure, they’ve had a longer time to grow their wealth, and they grew up experiencing a booming economy that allowed them to benefit from things like lower housing costs.

Our parents were right to say money doesn’t grow on trees, and it’s worth listening. This generation might still try planting some seeds. But knowing Gen Z, there’s an app for that.

The South Korean government is ramping up discussions on specific tax incentives aimed at enhancing the market value of local companies, with plans to conduct public hearings over the next two months.

“We talked about tax incentives for the Value-up Program on several occasions. But now is the time for us to discuss more specific plans,” Finance Minister and Deputy Prime Minister Choi Sang-mok told reporters on Monday.

“Throughout June and July, we will host public hearings to deliberate specific tax incentives,” Choi said.

The government’s Corporate Value-up Program aims to incentivize listed firms to bolster their value, thereby improving their market value and addressing the so-called “Korea discount” issue. “Korea discount” refers to Korean companies being seen as comparatively undervalued due to various factors.

However, the recent release of a vague guideline lacking binding force and specific incentives to boost participation has drawn criticism.

READ: South Korea proposes tax cuts to stimulate corporate investment

Choi mentioned that the hearings will cover various incentives discussed in the market, including separate taxation of dividend income, corporate tax credits for increased dividends, and the abolition of inheritance tax surcharges for major shareholders.

“From the perspective of the effectiveness of incentives, the more benefits, the better. However, an excess could compromise fairness. We’ll strive to strike a balance,” he emphasized.

Public hearings

The top finance policymaker revealed that the open hearings will occur two to three times over the next two months. In the initial session, options will be refined, with subsequent discussions aimed at finalizing incentive details.

Choi also noted that discussions on inheritance tax will be included in the hearings. South Korea has the world’s second-highest inheritance tax rate at 50 percent, with a 20 percent “management premium” surcharge for major stakeholders at large firms, elevating the rate to the world’s highest, at 60 percent.

“In regard to the inheritance tax law, there are various proposals, from eliminating the surcharge for major shareholders to expanding family business inheritance deductions and enhancing benefits for Value-up companies,” he explained. “We will narrow down options through public hearings and incorporate them into the tax law amendment.”

READ: S. Korea readies financial support for small businesses, builders

Monday’s briefing marked Choi’s inaugural monthly press conference, a move aimed at enhancing communication with the media and the public.

During the session, he addressed various queries, including clarifying the government’s position on the short-selling ban.

“To reintroduce short selling, we need regulatory enhancements to combat illegal practices, including the implementation of a monitoring system,” he emphasized. “With the ban set to continue until June, we aim to clarify our resumption plans by the end of the month for market stability.

SME benefits extension

Earlier that day, Financial Supervisory Service Governor Lee Bok-hyun suggested that the short-selling monitoring system’s development could conclude in the first quarter of next year, suggesting a potential lift of the ban around that time.

Choi also disclosed the government’s plans to support the growth of small and medium-sized enterprises by extending the period for receiving benefits from three years to five years. Additional measures to assist them post-extension will also be introduced.

These measures will be unveiled in early June as part of the government’s “dynamic economy road map,” outlining its economic policy vision.

Regarding inflation, Choi reiterated the government’s positive outlook.

“Fortunately, prices are showing an overall downward trend after March’s peak,” according to Choi. “If there are no additional disruptions, we anticipate them stabilizing in the second half of the year as originally forecast, around the low to mid-2 percent range.”