I Am Empowered - I am the National Urban League

Anna Cuevas is the National Urban League's new Consumer Advocate, as part of our 2015 Financial Empowerment series. Learn more about Anna here.

Did your dad teach you to ride a bike and check the oil in your car? A father’s advice can be invaluable, especially when it comes to finances. When dads teach us the value of a dollar and how to budget our income, they give us the tools to be financially secure and independent. This Father’s Day, let’s thank dads everywhere for their words of wisdom, such as:
 

• Be prepared for emergencies. Dad always had a flashlight and extra batteries around, just in case of a power outage. And he taught you that you should always carry some cash on you in case of an emergency. The same is true for spending—always put some money aside from your paycheck in a dedicated emergency fund so you’re not strapped if your furnace goes out or you find yourself out of work for a period of time.
   
• Spend a penny, save a dollar. Yes, dads are the kings of savings. They taught us to be frugal when it comes to spending, but to be generous when it comes to savings. Did your parents give you an allowance, but make you save part of it? This financial advice is as solid today as it was generations ago.
   
• Take care of the most important things first. While it may be tempting to buy something you want but don’t really need, set priorities. Before you put your hard-earned dollars toward a new stereo system, make sure you have the money for routine medical and dental appointments, medicine, food, and other priorities, like paying your bills on time. Unlike a cell phone or a stereo, your health and financial status should be top priorities.
   
• Get the best price, but don’t sacrifice quality. Do your research and compare prices, especially on big purchases. Be a conscious consumer and look for sales and other discounts, which can save you a lot of money. This also applies when you’re car shopping. Make sure you’re not only getting the best price, but also a quality vehicle and at the best interest rates and terms.
   
• Investments can be good AND bad. If you’re going to invest your money, make sure you also save a portion of it. Although the interest rate for savings accounts are low, they’re a sure thing, unlike investing, which carries the risk of loss. Invest cautiously and wisely. Do your own research before you play the stock market to determine if the risk is worth the potential reward.
   
• If you want it, work for it. If your parents didn’t buy you your first car, they did you a favor. When you actually have to work to earn the money for something, you appreciate it more and will take better care of it. Teaching children that money doesn’t grow on trees and the importance of working creates financial independence.
   
• Take care of what you already have. You might not have had the coolest bike on the block, but your dad probably told you to be grateful for it and take good care of it. Most people don’t have enough disposable income to replace things that could and should last a long time.
   
• Don’t quit one job before you have another. There is no such thing as a sure thing. While you might think it will be easy to get another job, don’t count on it. Breaks in employment don’t look good on a resume, and they can cause money problems you didn’t need to have.
   
• Were you born in a barn? We consider air conditioning, electricity, and water as necessities, but just because we need them doesn’t mean we can’t use them wisely. Saving money on utilities is a valuable lesson that our parents taught us. Thanks, Dad, for the reminder!
   
• Give. You might not have a lot, but Dad probably told you that there were others who had even less. Giving to charities of your choice and donating used items, instead of throwing them away, is another lesson that never goes out of style.
   
• Stay out of debt. Dads know that debt is heavy. They saved money before making a big purchase, rather than signing on the dotted line. They taught you that credit cards should be used on a limited basis. Pay cash when you can and avoid fees and interest payments, and you’ll save a lot of money.
   
• Budget. Create a budget and stick with it. This fatherly advice is the key to managing your money, paying your bills on time, and preparing for homeownership, retirement, and other major purchases.

Such advice is just as important today as was when you were a child. The best gift you can give your father this Sunday and beyond is to heed his advice and thank him for preparing you to be a financially responsible adult.