As children, when we are completely dependent on our parents, concepts such as financial planning, money management and financial security don’t mean much. Yet most of our beliefs about money are fairly established by the time we are approximately 12 years old. These beliefs are based on a number of factors, including the financial status of our family, the economic climate in which we have grown up, and our parents’ way of dealing with finances.
Our first practical encounter with money often begins when parents provide us with an allowance. Along with that allowance, most of us will usually receive a piggy bank, or even better, a savings account in the family’s bank. We are encouraged to “save” our money. At this point, money has an actual value, and the words “money management” begin to take on some meaning. Add a simultaneous increase in personal freedom to the equation, and the possibilities can seem endless. It is at this time that our future attitude towards money matters becomes more clearly defined.
Some of us revel in the money-equals-freedom formula. We live for the day. Adults of a certain vintage may recall arcade game marathons followed by fast-food feasts. Perhaps some of our friends were more frugal with their money. They likely didn’t use the words “financial planning” or “money management”, but that’s precisely what they were doing. Maybe they were saving up for a special purchase. Others may have simply enjoyed watching their money add up, admiring the potential value of their growing funds. Merely having a piggy bank or savings account gave them a sense of financial security.
Teaching Your Children About The Importance of Financial Planning
Our attitude towards “financial planning” changes during adolescence, usually as a result of getting our first job. Going to the movies involves a financial sacrifice. We begin to put our money belief system into action, and this requires some small-scale financial planning. This is where parents can help. Many parents, however, are hesitant to discuss financial planning with their children. Studies reveal that:
- A majority of parents feel less prepared to talk to their children about money than they are to explain “the birds and the bees”.
- Only a small percentage of parents have explained to their teenagers how credit card interest and fees work.
- Very few parents are cognizant of the fact that learning about money management should be a priority for their adolescent children.
If you are a parent, look for opportunities that allow you to explain financial concepts using real-life situations. Try to lead by example. Encourage your children to help out with the planning process so they understand the value of money and the importance of having a sound financial plan to achieve their goals. They’ll be indebted to you and it will become an enjoyable experience for all!
Financial planning is essential for every individual and family. How much or how little we know about money directly affects our quality of life, now and in the future. If you’re a recent graduate or have just started your career, Plan & Act can start you on the road to financial independence. Regardless of your current financial status, you can get started with one of Plan & Act’s Free Financial Assessments and then continue on with a personalized financial plan down the road to help you reach your goal of financial security and stability.
* Plan & Act is a registered Fiduciary Financial Advisor. This ensures the financial advice you receive from us is objective, unbiased, and protects your financial interests.
Happy New Year from all of us at Plan & Act! Hope everyone enjoyed the holidays.
So…2012 is here…and despite all prophecies and pseudoscientific claims of Doomsday, The Ice Age, the Apocalyptic Meltdown and what have you, this New Year, just like each one before it, brings new hope, new promises and new dreams.
Look around you—almost everyone is talking about New Year’s resolutions. Yes, there are some who are talking about simply not having one, but they’re still talking about it. Not surprisingly, one resolution that features among the top 5 each year is the one about good health and fitness. Around the world, people want to live healthier, happier lives and realize the importance of being physically fit. A few discerning folks, however, also recognize the importance of fiscal fitness. Being prepared financially for the future contributes greatly to peace of mind and thereby, good emotional / psychological health.
Remember that 2012 is not just “one year”; it is “366 days”. Yes, that’s right; we have an extra day this leap year. A little planning, a little saving, a wise move one day at a time can help you transform your financial health for the better and keep you steadily on the growth path.
What Steps Can YOU Take to Achieve Financial Health?
If you have resolved to think seriously about financial planning and get fiscally fit this year, we at Plan & Act are delighted to help you achieve your goal. Here are 5 quick tips and advice that you will find useful:
- Know where you stand—no two individuals, families or businesses have the exact same investment risk capability. Identify what your comfort level is and be aware of how much volatility you can and are willing to face with your financial portfolio.
- Thoroughly research various investment options available to you. Shortlist the ones that seem to make the most sense and get professional advice to determine which options are most suitable for your situation and financial goals.
- Be smart about calculating the various contributions you have to make on a regular basis and ensure the funding sources are rock solid in place.
- Keep in mind that financial plans are not cut in stone; they must be dynamic and evolving based on your changing situation. Monitor and review your plan, your savings and investments, retirement funds and overall financial growth strategy at fairly regular intervals so you can tweak your portfolio as required.
- Trust a fiduciary financial advisor so you are not bound or constrained by biased advice. Be wary of being coerced into investments that are not specifically suited to deliver the maximum benefit for you.
*Take the first step to fiscal fitness in the New Year. Like Us on Facebook and get your FREE assessment by the online financial planning experts at Plan & Act. Take advantage of our online financial planning and assessment tool—for a low $199 only, you can get your own personalized financial plan. If you are not completely satisfied, your cost will be refunded in full.
* Plan & Act is a registered Fiduciary Financial Advisor. This ensures the financial advice you receive from us is objective, unbiased, and protects your financial interests.
Flickr Image: ElvertBarnes
It sounds strange, but one of the most common reasons individuals shy away from meeting with a financial planner is fear—
- of being asked questions they don’t have answers to
- of being judged for past financial decisions that did not pan out so well
- of having to pay exorbitant fees for a financial advisor
- of a financial plan they aren’t confident will be in their best interest
- of a consultant who sells them financial products they know nothing about
Amidst all this anxiety, stress and fear of financial planning, it is reassuring to know that there are credible, convenient, affordable online financial planning tools available to you. The best part of a sound online financial assessment and planning tool is that while it is runs on an advanced technology platform, there are highly qualified and experienced financial advisors that continuously monitor the tool. The technology is designed to be intuitive so you don’t waste time over irrelevant questions or deciphering tons of meaningless information.
Plan & Act’s online financial planning tool is affordable for everyone. For only $199, you are presented with a customized financial plan. This plan is developed on the foundation of a FREE assessment—you walk through the process in an online ‘chat’ with our team of financial planning experts. You will be asked pertinent questions regarding your personal financial matters with the primary aim of finding out:
- Where do you stand today?
- What is your vision or goal—where do you want to be in the future?
- What is your plan of how to get where you want to be? Our recommendations will help you decide on the best way to go about doing this.
You can chat online when it is convenient for you, in the privacy or your own home or office, taking the time to keep information at hand and answering what you feel comfortable sharing. There is no evaluation or judging of what you did or did not do in the past with your finances. Only good, solid, objective, independent financial advice from the experts who care about your financial growth and stability.
Your confidence in the expertise of the Plan & Act will be reinforced when you see the level of detailed assessment and a comprehensive plan that you receive at the end of the process. You are free then to choose whether to engage the same team for your money management or to undertake that on your own following our recommendations and advice.
Take the first step now—Like Us on Facebook and get your FREE assessment by the online financial planning experts at Plan & Act.