Money Habits We Inherit: The Good, the Bad and the Frugal

Many of our inherited money habits start with saving — or a lack of it. Some of us were taught to stash every coin into a piggy bank, others were raised in a household where saving simply wasn’t discussed. One guest on the podcast recalled not thinking about saving unless it was for an immediate purchase, while another was encouraged by her father to build a separate savings account for car repairs — a lesson that paid off years later when expensive bills came in. These moments might seem small, but they form the foundations of how we prepare for the unexpected.

The money habits we inherit from our parents often reflect their own financial experiences — and that includes how they taught (or didn’t teach) us about saving.

When it comes to debt, inherited behaviours can be even more impactful. Some guests learned to be cautious — only using a credit card when they had the cash ready to pay it off. Others developed a more relaxed attitude, using credit for unexpected expenses without fully understanding the consequences. One panellist admitted that she’d been far too comfortable with credit cards since age 18, while another had learned from her mum’s rule of “don’t spend it unless you’ve got it” — a generational belief passed down with care.

The way we think about debt is often formed long before we apply for our first credit card — and undoing that mindset takes time and awareness.

Spending habits are another area where family influence runs deep. Some parents modelled frugality, others prioritised quality, and a few focused on investing in experiences rather than things. One story involved a $100+ cardigan bought with birthday money, encouraged by a mum who valued longevity over price. Others remembered being nudged away from flashy tech purchases toward more practical choices. Across the board, the message was clear: what our parents chose to value — clothes, gadgets, family travel, or private schooling — often becomes the lens through which we view spending today.

These habits don’t just guide our shopping decisions — they influence what we believe is “worth” spending money on.

A key insight from the episode was the idea of money scripts — unconscious beliefs about money formed in childhood. Whether it’s money avoidance, money worship, or money vigilance, these patterns can influence our net worth and financial wellbeing. People with money avoidance tendencies, for example, often feel anxious about finances and avoid planning — a habit linked to lower overall wealth.

Understanding the psychology behind the money habits we inherit can help us identify what’s worth keeping — and what needs to change.

The episode also explored how we can break inherited habits that no longer serve us. Linking financial goals to identity — e.g. “I’m the kind of person who saves” — can help rewire thinking. So can tools like habit trackers, spreadsheets, or budgeting apps like PocketSmith. The hosts also touched on the role of financial therapy and how external influences (like social media and rising living costs) can add pressure and distort our sense of “normal” spending.

As the world changes, so must our money mindset. Breaking bad habits isn’t just possible — it’s necessary for financial resilience.

• Many money habits are inherited from our parents — both consciously and unconsciously.

• Saving styles, attitudes toward debt, and spending values are often shaped in childhood.

• Concepts like money scripts reveal how deeply rooted and psychological our financial behaviours are.

• Tools like habit trackers, budgeting apps, and automatic transfers can help reset unhealthy money habits.

• Creating new financial identities and mindsets is key to long-term change.