Financial Challenge: what can I learn from my 80-year-old mother?

Are older generations more careful with money? Katy Ward made her octogenarian mother her financial adviser for a week.

Sleeping in my childhood bedroom, living with my 80-year-old mother, with hardly any pensions savings and little chance of getting on the property ladder. 

I’m hardly the portrait of financial success you’d expect from a thirty, ahem, something money journalist.

But my situation is far from unique. According to a report from the Resolution Foundation, one in three millennials may never own their own home, with a half renting into their forties.

While I lay the blame for this financial impasse on rising house prices and years of stagnant wages, I did start to wonder…

Could my octogenarian mother teach me a thing or two about money?

After all, she'd already helped me sort out my grocery bill.

To take things a step further, I decided on an experiment. Every day for a week, I adopted one of my mum’s parsimonious habits to see if I could save.

Here’s what happened…

DAY ONE: Always pay in cash

“If you see the money actually leaving your wallet, spending feels a lot more real.” Or so my mum admonishes.

Her advice has a ring of truth. But, almost immediately, the gulf between her frugality and my, perhaps slightly wasteful ways, starts to emerge.

How much do I need to cover my expenses for a day? My mum suggests £5. This seems impossible. How about £15? At least give me a tenner.

THE VERDICT: We were never able to settle on a sum for daily spending (and this would, of course, depend on lifestyle and location).

Having said that, I certainly exercised more discretion over the week when it came to splashing the cash.

During the seven days, I’d estimate I cut back on approximately £40 in unnecessary spending.

Looking to cut back on your spending? LoveMONEY has put together a list of 7 crucial money rules

DAY TWO: Find free entertainment

I’m due to meet up with an old school friend today.

She suggests a restaurant with prices of around £30 a head… for lunch! I hate to appear cheap or, even worse, rude, but there’s no way I can afford this on my current budget. Mum, alternatives please?

THE VERDICT: Her advice? Find a way to occupy myself for free. Living in Hull (the 2017 City of Culture, as we like to brag following years of mockery), filling a few hours without overspending shouldn’t be too challenging.

I suggest an exhibition of photographs taken in laundrettes around Yorkshire. Bizarre, yes. But also fantastic and free. God knows how much this activity would have cost in London.

DAY THREE: Embrace the charity shop

When I was growing up, my parents had a car boot sale pitch at the local school every Sunday.

I’d never quite embraced the second-hand mentality myself… until one Wednesday when my mother dragged me to the local charity shop.

THE VERDICT: I’m a convert. My favourite find… a DVD of an obscure Austrian film. The last time I’d seen this on sale, it was about £22.

The going rate on Hull’s charity shop scene? One quid!

DAY FOUR: Cancel unused direct debits

For the first time on my money-saving agenda, I clash with my mother.

She insists I apply a forensic eye to my direct debits; identify and slash any waste.

THE VERDICT: There’s definitely wastage I can eliminate – like most wannabe savers, the first casualty is membership of a gym I haven’t been within miles of for months.

Netflix, however, soon becomes the site of an inter-generational battleground. Adhering to my mother’s octogenarian wisdom, my monthly subscription at £7.99 is a total waste when we have Freeview. For me, this is one sacrifice too far.

My solution? Lie, lie, lie, I tell my mum I’ve cancelled Netflix. This will never happen.

Read more from Katy Ward (and her mother): how shopping like an 80-year-old saved me £360 a month on food

DAY FIVE: Get a proper job

In my family, freelance journalism is considered a precarious way to make a living (at best). My nearest and dearest constantly email me alerts for jobs they just happen to have seen online.

Coincidentally, I spot a job that seems perfect and send off an application. I get an interview. Perhaps, it’s fate.

THE VERDICT: Despite the lure of a steady income, I’m not quite ready to relinquish the freedom my freelance lifestyle allows.

The experience does, however, convince me of the value of seeking new ways to make a little extra cash. I sell some of my old DVDs (here's how to get started on eBay) and relentlessly seek new freelance gigs.

Besides… I didn’t get the job, anyway. So much for fate.

DAY SIX: Save a pound a day

“We all waste a pound…every single day.” With this in mind, my mum puts a pound aside in a jar every morning. Makes sense.

THE VERDICT: This time, I make a few updates to mummy money management.

I see two flaws with her technique of stashing her savings in an old jar.

First, she isn’t earning interest on her cash and could easily maximise her returns by opening a high-paying savings account.

Second, it’s hardly prudent to leave such a large sum lying around the house. Builders, casual acquaintances… they’re all in and out every day.

DAY SEVEN: Think about my own 80-year-old self

Saving for my old age is something I’ve perpetually postponed. But, as a financial journalist, I have this nagging voice telling me the figures don’t quite add up.

THE VERDICT: I make an appointment with a financial adviser. When it’s over, I feel the kind of relief you do after a visit to the dentist. It’s not fun, but never (quite) as bad as you’d built it up to be in your mind. Read more about saving for a pension here.

So, what did I learn after my seven days under financial parental control? Obviously, I didn’t enjoy having someone know every intimate detail of my spending. I’m not sure I’d recommend having your mum nag you about every penny you shell out. It’s weird and embarrassing.

From now on, I’ll try to be my own nagging mum voice. I don’t think I learned anything I didn’t already know. I just need to face facts, grow up and do it.

So what do you think? Should more young adults turn to older generations for frugal tips? Or does the rapidly growing role of technology mean younger generations should actually be doing the teaching? Or perhaps a bit of both? Share your view in the comments section below.

Read more from Katy Ward (and her mother): how shopping like an 80-year-old saved me £360 a month on food