My mother taught me 4 life-changing money lessons

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• My mother instilled the value of budgeting and waiting before making big purchases in me.
• She understood the importance of compound interest, opening savings accounts for her grandchildren.
• She taught me from a young age that life insurance is a valuable tool that can help your family.

Research shows that most of our habits around money are formed by age 9. As a mother of three young children, one of my goals is to help my kids develop healthy financial habits from a young age.

The desire to raise financially savvy adults has made me reflect on the money lessons I learned from my parents — especially the ones I learned from my mother, who died in February.

Growing up, my mother didn't share a ton of financial concepts with me. However, she shared a few valuable pieces of advice about money using real-life examples. She was also intentional about repeating those stories to my siblings and me over the years. Here are some of the lessons about money I learned from my mother.

1. Budgeting a percentage of my income

When I was about 10 years old, my mother started talking to me about the importance of budgeting, living below your means, and setting aside at least 20 to 30% of your money. She emphasized the importance of having money available just in case because unexpected things always happen in life.

My mother used to share examples of how practicing those habits helped her accomplish things in her life and how not practicing those habits was detrimental. At 13 years old, I created my first budget to make sure I put away at least 20% of my allowance. Budgeting is a habit that I developed as a teen and carried well into adulthood, and I still practice it today in my late 30s.

2. Waiting before making unplanned purchases

My mother never made any large, unplanned, optional purchases. When we were on vacation, my mother would have a shopping budget for the trip. She didn't make any significant purchases without taking a couple of days to think about it.

I remember asking my mother why she wouldn't buy things that she wanted since she had the money for them. She would say that being able to afford something is not a good enough reason to buy it and that we should be intentional about every dollar spent because money is a resource that should not be wasted.

Watching her practice that habit over the years left a big impression on me. It helped me become more intentional about spending.

3. Getting the most out of compound interest

When my mother's first grandchild was born, she gave her parents money and asked them to open a high-yield savings account under my niece's name so the money would grow over time and provide a safety net for her. Over the years, my mother would continue to add money to the account.

It's a tradition she kept with her other grandkids while she was alive and healthy. Today, I use investment accounts for my kids as they provide a better opportunity for interest to compound over time.

4. The importance of having life insurance

My mother used to openly share that she had life insurance policies, a taboo topic in our Cameroonian culture. When I asked her questions about it, she let me know that it was an important financial tool to have as it helped provide financial relief to your loved ones in the event of your passing.

Though my mother never explicitly advised me to get life insurance, I have had life insurance outside what is provided at work since my early 20s, years before I started my own family.