Paying Back is the Payback

   Welcome back to Money Matters. We’ve already talked about the four stages of money management that we go through in our lifetime. If you’re just joining us, you may want to start at the beginning of the “Color of Money” series.

Stage 1: Color Yellow

Stage 2: Color Green

Stage 3: Color Red

Stage 4: Color Blue

In the 4^th segment, we discussed retirement and I mentioned that this is when we receive the payback for all of our efforts. In today’s segment, the last installment for this series, I want to talk about another kind of “payback.”

I believe a better way of thinking of it is how we Pay it Forward.

This, of course, is talking about how we become role models for other people within our circle of influence.

Regardless of our age, there is always another person who interacts with us that, on some level, is observant of how we conduct our life. Included in that evaluation is our relationship with money.

Think of your children. What kind of messages are you sending them through your  attitudes about money? How do your actions support your commitment to financial planning? What beliefs and attitudes do you want them to have about money as they begin their artistic journey, creating their own masterpieces?

What about other people who may not be tied to you through family, but over whom you have influence? This could include your co-workers or young adults in professional organizations in which you belong.

None of us is immune from learning just because we get older. Our demonstration of sound money management could even have an impact on our parents. (At a minimum, I would hope this could give them peace of mind that we are self-supporting and no longer rely on them for our financial needs).

Wouldn’t it be splendid if each generation could become self-sufficient through their smart money decisions so that they would not be dependent upon the next generation for support?

It all starts with me . . . and with you.

Here are three easy ways to begin “paying it forward”. And you can begin today.

1) As you’re figuring out what works for you, I encourage you to share that wisdom with others. It may or may not be a perfect fit for the next person, but the sharing of ideas and wisdom can certainly shorten the learning cycle and strengthen each other’s portfolio of knowledge.

2) Talk to your children about money. Money discussions are frequently a taboo subject in households. By breaking this code of silence, your willingness to discuss some money issues with your children can do wonders. Show them, through your decision-making process, how you choose one purchase over another. In their early years, teach them habits of saving and wise spending. If you’re retired and have young adult children, share your concepts and bits of wisdom when discussions turn to finances and borrowing. And while you’re at it, when appropriate, talk to them about your own financial situation. It helps them to know that you’re comfortable financially – or not. And if you’re doing well in that regard, it might provide them with a guidepost of how much it will take (in today’s dollars) to live as comfortably (or not) as you do.

3) Keep your financial affairs in order. The older we get, the more important it is to have everything documented for those who will handle our estates. We don’t know when our time on this Earth will be up; so always keep your money matters documented and well-tended. And let at least one other person, someone you feel is trustworthy, know where to find this information in case of an emergency.

We all need examples to live by. May it start with us.

May you have a bountiful life!

Coach Darlene