Every generation passes down money advice with the best intentions, but not all of it holds up today. What may have worked in the 70s, 80s, or even 90s doesn’t always make sense in a world of sky-high housing costs, student loans, and digital everything. Some of those old financial “rules” are now more outdated than a checkbook register.
Here are seven pieces of financial advice from older generations that simply don’t fit modern life anymore and what you should keep in mind instead.
Crochet for Cost-Effective Hobbies
Crocheting and knitting used to be go-to hobbies for those looking to save money on clothes.
You could make your own scarves, blankets, and even clothing with a bit of yarn and some time. But here’s the reality: buying yarn is surprisingly expensive, and while there are countless tutorials online, unless you’re highly skilled, you may end up with a pile of tangled yarn rather than a masterpiece. So, while it’s a fun hobby, it’s not as cost-effective as it used to be.
DIY Sewing
Sewing your own clothes used to be a way to save serious money.
But these days, fabric prices are high, and quality materials are hard to find without paying a premium. Even if you’re skilled at sewing, you might find that buying new clothes from discount stores is often cheaper than the time and expense of making them yourself. What used to be a frugal hobby is now more of an investment in materials and tools.
Banks
Once upon a time, sticking with the same bank for years would reward you with better rates and customer service. Now, banks are more about profits than people, and loyalty doesn’t seem to matter much.
Many people find themselves jumping from bank to bank in search of better deals, as the financial industry focuses more on shareholders than on building relationships with customers.
Thrift Stores
Thrift stores used to be a treasure trove of hidden gems at unbeatable prices. These days, however, many thrift shops are pricing used items at levels that aren’t much lower than buying new.
With the rise of online shopping and discount stores like Marshalls and TJ Maxx, new clothes often come at prices comparable to, or even cheaper than, secondhand items from a thrift store. Thrift shopping is still an option for those looking for unique pieces, but it’s not always the money-saver it once was.
Housing
Finding affordable housing has become a nearly impossible task for many. Skyrocketing rent prices and inflated home prices mean that it’s harder than ever to find a good deal.
The traditional advice to spend no more than one-third of your income on housing is now out of reach for most people in many cities, and sacrifices in quality of life—such as smaller living spaces or less desirable locations—are often necessary to make rent.
Credit Cards
For years, the advice was to avoid credit cards, but that’s no longer the best strategy. Used responsibly, credit cards can actually offer benefits like cashback, points, and travel rewards. Paying off the balance each month ensures you avoid interest, and using the right card can help you earn rewards that make purchases more affordable in the long run.
Turning Off Lights
The old advice of turning off lights when you leave a room may save a few pennies, but in the grand scheme of things, it’s not the most effective way to lower your electric bill. Modern LED bulbs use so little energy that the savings from turning them off are minimal. Focusing on reducing heating, cooling, and water usage is a far more effective way to cut your energy costs.
While these tips were once the foundation of frugal living, the reality is that times have changed, and many of these strategies no longer provide the same level of savings they once did.
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