Why Taking Investment Advice From Your Parents is Dangerous
Your parents mean well—but their financial advice might be stuck in the past. Saving every penny, avoiding any risk, and delaying joy until retirement might have worked for them, but today’s financial realities require a different approach.
If their advice feels out of sync with your goals, it’s time to respectfully break away and embrace strategies that fit your modern life. Let’s explore why the generation gap matters in financial advice—and how to get the guidance you really need.
The Generation Gap and Financial Advice
It’s tough to question advice from the people who raised you, but the financial world your parents navigated is not the one you’re living in today.
They may have told you to save for retirement above all else—but you want to balance long-term goals with traveling, starting a business, or pursuing experiences now.
Mortgage rates in the 70s and 80s ranged from 10% to over 16%, while today’s borrowing environment looks completely different. Add in student loans, skyrocketing housing prices, and inflation, and it’s clear their strategies don’t fit our financial reality.
Why You Need Modern Financial Advice
Your parents didn’t grow up with side hustles, crypto, or the gig economy. Their advice—though well-meaning—might not match the financial realities or opportunities you face today. Learning to chart your own course doesn’t mean ignoring their wisdom; it’s about adapting it to fit your goals.
Times have changed:
Investing used to be about meeting brokers, paying fees for every trade, and sticking to “safe” options like bonds. Today, the financial world moves faster, with tools like ETFs and robo-advisors making growth more accessible than ever.Your priorities are different:
Your parents may have saved for a home and retirement—but your goals might include paying off student debt, funding a sabbatical, or starting a passion project. For better or worse, our dreams are much less simple than they’ve been in the past.Your have access to DIY tools:
Apps like Copilot, Betterment, and Robinhood make it easy to track your finances, automate investments, and grow your portfolio. Embracing these tools can help you save time and maximize returns. But keep in mind, apps are designed to keep engagement high which may not be in your best interest.
Where to Seek Reliable Financial Advice
Consult a Financial Advisor
A qualified financial advisor can provide personalized guidance, help you set realistic goals, and create a comprehensive financial plan. Look for a fiduciary advisor who puts your interests first. Remember, managing your money is not the only thing Financial Advisors do. Steer clear of advisors who are only interested in managing your investment account.
Learn From Trusted Online Resources
The internet is full of financial content—but not all of it is created equal. Some of our favorite resources include:
So Money Podcast with Farnoosh Torabi: Get insights on various financial topics. You can even catch our CEO Priya Malani on Episode 902.
Planet Money: Dive into the world of economics and finance with this engaging podcast. We recommend Episode 688: Brilliant vs. Boring, which explores the impact of Warren Buffett's famous 2006 bet on the market.
Books: Want to delve deeper? Here are a few books that can provide valuable insights:
I Will Teach You To Be Rich, Ramit Sethi. This book is the real deal, and our number one place to start your financial reading list.
The Millionaire Next Door: The Surprising Secrets of America's Wealthy You’ve probably heard of this one. Stash Wealth doesn’t stand by 100% of the principles in this book, but it’s a great read to help balance our desire to keep up with what we see on Instagram.
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. This is an oldie but goodie. The content is definitely on the dense side, but we think you can handle it. It’s as eye opening as it is informative.
Financial Literarcy Courses
Many organizations offer free or low-cost courses that teach the basics of money management and investing. Check out resources like the Financial Planning Association that can help you level up your financial game online and IRL.
In a serious relationship? Grab our FREE 25-MIN VIDEO and learn how to build real wealth by mastering your money as a couple.
The Bottom Line
Your parents’ advice laid the foundation—but now it’s your turn to build the future you want. With modern tools, expert guidance, and a plan tailored to your goals, you can grow wealth on your terms.
Ready to stop guessing and start growing? Let’s see if we’re the right fit to help
Key Takeaways
Outdated Advice: Your parents' financial advice, while well-intentioned, may be outdated and not suitable for today's economic landscape.
Personalized Approach: A one-size-fits-all approach to finance doesn't work. Consider consulting a financial advisor to create a personalized plan.
Leverage Online Resources: Utilize online resources such as podcasts, blogs, and financial literacy courses to enhance your financial knowledge.
Continuous Learning: Stay informed about financial trends and adjust your strategies accordingly.
Take Control of Your Finances: By taking proactive steps and making informed decisions, you can secure your financial future.
The F. Word
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