In our experience, one emotion new clients often bring to our first meeting is guilt. We have heard apologies from folks who think they should have made their appointment months ago, who feel they aren’t organized enough when they come in, and still others who are dwelling on past mistakes. Our first piece of advice in cases like this: acknowledge the emotions that are present, so you can manage them and move forward towards a more productive financial future.

An empowered financial future

While the title on our office door may say “financial planning”, we do more than just crunch numbers. We work with clients to replace their guilt with a sense of empowerment. Before we can make a solid go-forward plan, it’s vital that clients forgive themselves and move away from any negative emotions clouding their decision-making. It doesn’t matter what happened in the past; it can’t be changed. Instead, we help our clients learn how to focus on what can be done from this moment forward.

Easy actions make a big impact: Take Control of Your Finances

The way forward will vary some from person to person, considering individual goals, aspirations, history, current income and investments, and more. However, we have a go-to list of easy actions anyone can take to start on the right foot for the future. We can almost guarantee that after you make just a few adjustments, your feelings about your financial future will be better and brighter.

• • Automatically send money to savings. You won’t miss what you can’t see. Even a small amount going into your savings account every month will add up faster than you think.
  • Put pay increases towards retirement. Every time you get a raise, put that amount into your 401K. Your take-home income will look the same, and you’ll painlessly increase your retirement income. You’ll be amazed at how this small addition compounds over time.
  • Be realistic about spending. If debt is weighing on you, start a new monthly check-in practice. Always pay off what you spent that month, the interest, and a little more. If you’re not doing that, you’re spending too much.
  • Eliminate impulse purchases. If credit cards are causing your debt to rise, leave that card at home! If you have to make an extra trip to buy that special something not in your budget, or on your list, you’re much less likely to follow through.

Start today

If feelings of guilt, or hesitation, or uncertainty have been keeping you from your financial goals, its time to make a change. Take stock of what is preventing you from moving forward, acknowledge it and let it go! There are simple things you can start doing today that will alleviate feelings of being overwhelmed, unsure or unprepared. You can become an empowered, intentional person who is achieving goals and laying the groundwork for a bright financial future. We can help.

No matter your religious or spiritual traditions, chances are good your family gives gifts during November and December — or gets barraged by ads talking about them. As a mom to four adult children, I’ve sometimes experienced a certain panic around finding the “right” gifts for my family, including my children, nephews, nieces, and other relatives.

In our busy society, it’s easy to default to buying gift cards or throwing last-minute toys on the pile. But as I got further into my career as a financial planner, I realized I could give gifts with a long-term impact instead. Rather than simply spending money, I wanted to go deeper and teach my kids the value of it. I realized that like many adults, young people need to be taught how to spend wisely. Delaying gratification, planning ahead, and being intentional are important values I wanted to instill in my family.

7 Holiday Gift Ideas from a Financial-Advisor Mom

If you’re feeling overwhelmed by the prospect of buying gifts this holiday season — or if you want gift ideas for any time of year — consider this list. It comes from my own playbook as a mom (who also happens to be a financial advisor).

Think about your family as you read. Is there someone you know who might benefit more from a long-term legacy than a short-term thrill? The ideas below will continue to serve the recipient long after the excitement of the holidays passes.

At some point over the years I’ve given every gift on this list with great success! Now it’s your turn.

Gift idea #1: Write a Blank Check for Charity.

Give kids a check with the “pay to the order of” blank so they can choose a charity to support. If it’s local, take them there to give the check in person. (You might consider making arrangements first with a contact there, so the connection can happen at a good time.) The trip will show your youngster what a great feeling it is to give to others. Experiences like this can create lifelong memories. Make it a tradition!

Gift idea #2: Invest in a Roth IRA.

If a young person has worked and has earned income that will receive a W-2, no matter the age or amount, put some money in a Roth IRA in their name (see minimum and maximum contribution limits). For those under 21, you can set up what’s called a custodial Roth IRA. This means you’ll manage it until the individual turns 21. Whether or not they see the value today, as the years pass they’ll thank you a million times over.

Gift idea #3: Set up a Brokerage Account.

To teach children about investing, set up a brokerage account and purchase one share of stock. Remember this isn’t about you: the company has to be one the youngster wants to watch over time. When I did this with my kids, they chose companies that matched their interests: Disney, Sony, John Deere, and Electronic Arts. Follow these steps:

1. Start with a product, restaurant, service — something tangible that’s caught your loved one’s attention. (Bonus: This is a great opportunity to get to know your family in a new way. The bond that can form from this shared experience may surprise you both!)
2. Do some research. You might have to dig to find out the parent company. Embrace the learning opportunity and do it together!
3. Talk about the company. Figure out why it intrigues your child, and ask: Do they think it will continue to do well? Does it need to develop new ideas, change with trends, or does it serve an ongoing need? If the company has other products, how are they doing? Give your child some homework/research they can do on the company over the internet. Maybe they can even earn another share by making a persuasive argument.

Gift idea #4. Purchase a Stock in a Dividend Reinvestment Plan.

Another option is to set up a Dividend Reinvestment Plan (DRIP) directly with your selected company. These plans can provide advantages not available when opening a brokerage account, such as buying shares without paying a commission and automatically having the dividends reinvested in additional shares of the company.

While every company’s policy is different, there are many companies that offer free plans. Others charge fees or have minimum investments. Possibilities children may recognize include General Mills, Kellogg, 3M, Polaris, Toro, Johnson & Johnson, Foot Locker, and Dr. Pepper Snapple Group.

Gift idea #5. Play the Stock-Market Game.

Sometimes experiences make the best gifts. Bring fun and learning to your family by playing the virtual stock market through an experience from Best Prep, an organization founded to teach Minnesota students business skills.

For less than $15 per team, play for your choice of three, six, or twelve months. You pick the teams: cousins, parents versus kids, random pairings, family friends, or neighbors are all fun options. It’s up to you! (Note: This gift involves more advance planning, but the effort is worth it.)

If playing for bragging rights doesn’t appeal to your family, sweeten the pot by offering a prize to the winning team. Game winners receive imaginary money, but your prize can be anything you decide. Consider a monetary gift, or — my personal favorite — a gift to a charity of their choice.

Gift idea #6. Participate in a Microlending Campaign.

It can be great fun for older kids to make a decision as to whom they would like to lend money and for which projects. An excellent site is the nonprofit Kiva. For as little as $25, anyone can make a loan to a help people around the world create opportunities for themselves, their families, and their community.

Gift idea #7. Piggy Bank Sets: Share Save Spend.

This concept was started by a local Minnesotan, Nathan Dungan. Start younger children out with an allowance and three piggy banks. Label the banks Share, Save, and Spend. Shopping for the banks themselves can be fun (and if your kids like crafts, this paint-your-own piggy bank could be a great activity to do together)! You can adapt this gift for older recipients by increasing monetary amounts and replacing the “piggy bank” with setting up checking accounts.

For inspiration and family-friendly tips about these concepts, check out Share, Save, Spend: Money + Meaning. I highly recommend the site for young people and adults who are learning to understand the importance of money and the role it plays in our lives.

 

Now that you’re equipped with some new concepts to inspire your holiday giving, give one a try! Whether you use these “out of the box” or as starting point for your own ideas, you’re on track to give your loved ones the gift of deeper financial capability. I’m a firm believer that it’s never a bad idea to combine education with generosity.

As you decide what gifts you give this winter, I wish you and yours all the happiness that the holiday season has to offer. Happy gifting! Contact us >