Money Lessons From the Wisdom of Your Grandparent’s Purse
Peter McGahan
Monday 2nd February, 2026.
YOU can tell a lot about a person by how they carry their purse. My grandmothers' was worn, always clean, contained enough cash for the day (and an emergency), a few boiled sweets, and a steel clasp which shut with purpose. That purse taught me more about money than any financial seminar ever could.
She didn’t talk about personal finance or inflation-adjusted returns. She talked about not wasting, about saving in jam jars, about fixing things before replacing them. She believed money was there to keep you safe, not entertained.
Today, many of us are trying to teach children about money in a world built on brand addiction, instant gratification, and Buy Now Pay Later buttons the size of a toddler’s thumb.
By the age of seven, many children have already set their internal views on how money works. Not because of what we said, but because of what they felt. They absorb the tension when bills arrive. They notice the silence in the supermarket queue. They feel the anxiety behind “we can’t afford that”, especially when it isn’t explained.
So, if you want to teach a child about money, start by noticing your own demeanour when you talk about it. Calm and open, beats controlled and tight, every time.
Have you ever spent 10 minutes explaining a money subject to your bored child’s face, only for your child to repeat back their grandad’s version a few weeks later: “If you can’t pay for it twice, you can’t afford it”? Don’t be offended. Grandparents speak in parables and children listen, because it sounds like wisdom, not warning. Just realise grandparents are a very brilliant cog of society. You will be one - one day.
Delayed gratification. We went from three decent channels to the same content diluted over 100’s of channels on demand, food on demand – everything. This trains us for immediate gratification. Take pride in simplicity. Have control over impulse - a sense that you’re the boss of your money – not the commercial world controlling you.
That’s the legacy we need to pass on. State this in the positive because the brain hears that. Rather than “don’t waste money”, say “we spend with care, because we value freedom and control more than flash and someone else controlling us.”
Rules like “save your money” don’t last unless they’re anchored to a value. Children will ignore a rule if they don’t see what it protects.
So tell them the why behind the rules.
“We don’t spend what we don’t have because peace is more valuable than things”.
“We buy what lasts not what shouts loudest”.
And if they’re worried about labels and brands, explain the trap, not just the cost. Tell them marketing isn’t selling products. It’s selling belonging. Brands often target them because they know children equate stuff with status.
Then give them status another way: through praise, choices, creativity. Tell stories:
“This spinning top is my grandfather’s toy. It’s over 110 years old. Think of the history, the joy that was had with that”.
Children don’t remember lectures. They remember stories.
“I once blew my entire pay packet on a stereo. I had to eat toast for a week. Never again”.
Or, “We saved up for two years for that holiday. Every choice added up to that memory”.
These stories teach meaning, not just mechanics. They say: “this is who we are”.
Tell them about how their grandparents used to budget with money in envelopes, and when they ran out, they had to reprioritise from other envelopes. It creates the connection to the money.
And if they want to buy something daft, let them. Better to feel that regret at 10 with a tenner than at 28 with a personal loan.
My dad once likened it to the old days when you had to fetch your water from the well. If the bucket had holes, you didn’t just keep carrying more. You stopped. You fixed the biggest leak first.
Start by teaching kids how to see the holes: subscriptions they’ve forgotten, snacks which add up, money slipping out of their lives without meaning, being subjected to consumerism.
Then teach them to control the tap: earning with purpose, not panic.
What do you wish someone had told you when you were 10? What story shaped your view of money, good or bad?
Grandmum’s purse didn’t just hold coins. It held lessons. Patience. Boundaries. The quiet power of thinking before spending. Maybe it’s time we opened that purse again, not to spend, but to remember what’s worth holding onto and smell its wisdom.
If you have a financial question, please call 01872 222422 or email info@wwfp.net
Peter McGahan is the Chief Executive Officer of Independent Financial Adviser firm, Worldwide Financial Planning. Worldwide Financial Planning is authorised and regulated by the Financial Conduct Authority.
