Out-of-Control Finances? Adopt These Old-Fashioned Money Habits

Adopting and adapting these money habits from your great-grandparents can help you gain control of your spending and your budget.

by Andrea Norris-McKnight

Old Fashioned Money Habits for Controlling Finances

My 18-year-old niece is just learning how to get a handle on her money. And she is always broke. Her grandmother offered up some lessons she learned from her parents and grandparents to keep spending in check and stay on top of her budget.

Of course, my niece thinks her grandparents are out of touch, even though they have been managing money as adults for almost 60 years. But my niece is right that personal finance is more complex than it once was when they didn’t have access to credit cards, money apps and retirement plans.

Additionally, it’s easy to lose track of frugal habits with today’s endless spending temptations, from ads to social media influencers.

If you’ve lost control of your finances, take a cue from your great-grandparents and grandparents. Many lived simply, spent wisely and understood the power of saving — not because they were better with money, but because they had to be to make ends meet. Here are a few old-fashioned money habits from past generations worth reviving if you’re trying to regain control of your finances.

Old-Fashioned Money Habits for Controlling Finances

The following habits are just as helpful today for controlling your money as they were decades ago:

Track Every Penny

Your great-grandparents had to budget money carefully to make sure they could cover essential expenses. There was no pulling out a credit card to get by. There were likely times they had to prioritize spending if it looked like there would be more month than money.

Decades later, a budget is the tool people still use to track income and expenses and prioritize spending. If you don’t have a budget, create one. Use a notebook, spreadsheet or app to start tracking every dollar you have coming in and going out. And then use it to find any money leaks — overspending — so you can ensure spending is within your budget.

Save Like It’s a Must

Our grandparents didn’t think of saving as optional. They saved because they had to — whether for something the family needed or for a “rainy day.” A rainy day fund was intended to weather small financial challenges like a minor appliance repair or a doctor’s visit.

Today, you should also be saving for unexpected expenses and financial goals. Automatic transfers to a savings account allow you to save without thinking about it. Treat saving like an essential monthly bill and watch your balance grow.

Make Extra Money on the Side

Before dual-income families became the norm, side hustles were how many families made ends meet, whether selling homegrown vegetables, doing odd jobs or babysitting. Every bit helped.

Today, opportunities are endless — from selling handmade goods online to freelancing. These side gigs can ease financial stress and even be enjoyable.

Learn About Money

Our great-grandparents didn’t have financial blogs and podcasts. But they still learned how to manage money.

Now, we have tons of resources at our fingertips. Take advantage of that! Learn about budgeting, investing or starting a side hustle. The more you know, the better you’ll handle your money.

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Old-Fashioned Money Habits for Controlling Spending

If overspending is a problem for you, these habits can help you reign it in and keep it in check:

Have Fun Doing Simple — Cheaper — Things

Back in the day, entertainment didn’t require big spending. A walk in the park, board games, or a night listening to the radio brought passed the time without breaking the bank.

Fast forward to today, and we’re spending on streaming services, concerts, in-app game purchases and more. Look for free or low-cost activities that bring happiness — and budgetary relief. A quiet evening with a good library book, a movie on a free streaming service or a potluck with friends can be just as fulfilling.

Learn To Ignore Ads and Influence

Older generations who lived through The Great Depression or were raised by Depression-era parents learned to value what they had and avoid buying stuff they didn’t need.

Before television and the internet, they also weren’t bombarded with ads telling them they needed the latest gadget. Nor did they have social media feeds filled with people encouraging them to spend.

Avoiding ads and influencers is almost impossible in our digital world. It’s important to learn tricks that can help you control that urge to splurge and overspend. After all, do you really need the latest tech upgrade or those trendy clothes? Probably not.

Embrace the “Cash is King” Concept

Older generations didn’t swipe credit cards every time they bought something. The first consumer credit cards weren’t introduced until the 1950s and could only be used at select merchants.

If your great-grandparents didn’t have the cash, they simply didn’t buy it. This straightforward approach kept them out of debt and living within their means. Many used the “envelope method” — dividing their money into separate envelopes for different expenses. When the money was gone, that was it for the month.

It is becoming increasingly difficult to have a cash-only spending plan. But that doesn’t mean you have to rely on credit cards. Use a debit card and online bill pay to cover your expenses. It is almost the same as paying with cash.

Log every expenditure in your budget so you know when to stop spending in your various budget categories each month. Logging your expenses as you spend can help you become more conscious of your spending and avoid unnecessary debt.

Regain Control of Your Finances With These Old-Fashioned Money Habits

Bringing these old-fashioned habits into your life can help you regain control of your finances — without feeling like you’re always giving something up.

Sometimes, simple is better.

Reviewed September 2024

About the Author

Andrea Norris-McKnight took over as the editor of The Dollar Stretcher and After 50 Finances after working under the site founder and previous editor for almost 15 years. She has also written for Money.com, GOBankingRates.com, HavenLife.com and The Sacramento Bee.