When providing financial advice, I often find myself answering these common questions: “What would you do if it were your mother? Your daughter? Your family?”
These are sometimes hard questions to answer, depending on the context of the conversation. But when it comes to the well being of my loved ones, it is important to prioritize financial management and planning, no matter what age or stage of life.
So for all the mothers, daughters and loved ones who are women in my life and yours, below I’ve outlined what I am always teaching my own daughters, Lizzie and Caroline, to understand about money management – and what I believe could help any woman teach other women and girls about financial responsibilities.
NEED VS WANT
Make smart decisions with money, rather than emotional ones (always ask yourself: Do I NEED this or do I WANT it?).
PAY YOURSELF FIRST
The first bill you should pay every month is to a savings account. Save a set percentage of your income (start with 10%) each month.
GIVE BACK
Give to those less fortunate than you, even if it hurts a little. Just do not go beyond your means. Trust me…it will feel great!
TREAT YOURSELF
Treat yourself, within reason, every once in a while. Depriving yourself is not healthy. Enjoy the fruits of your labor.
PLAN TO LIVE – LONGER
In general, women live longer than men, so never stop saving and understand that women ultimately need to save approximately 25% more than men. Start that process now.
NEVER STOP LEARNING
Failing does NOT make you a failure. Failing helps us all to learn. Making minor financial mistakes will teach you lessons that will help with bigger financial decisions in the future.
I know for me, there are so many important life lessons the women in my life have taught me – compassion, humility, perseverance, bravery and leadership, to name a few. I hope that this financial wisdom is one attribute I can add to the list of contributions as it relates to money management and planning for women and for all.
Eaton Financial Group is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.