Self Expression in the Workplace: The Case for Edited Authenticity

By: Raleigh Mayer

Significant controversy and outcry arose when a  Google executive lost his job after airing his views on the company's diversity policy . This sparked  public debate regarding the benefits and risks of airing personal viewpoints, and the expectation of individual responsibility in regard to protecting corporate reputation. Of course, each industry and company environment is different, but every employee is assumed to be a representative of the organization.

Despite the current emphasis on authenticity and "bringing your whole self to work", the over-arching consideration is whether complete freedom of expression  at work -- whether through speech, dress, or demeanor -- is always wise.

Our country's first amendment does protect free speech, but it doesn't protect  speakers from the consequences of that speech, including the impact on our  reputations. So , while we should certainly be true to our ethics, morals, and core beliefs, we should  keep in mind that  communicating positions on unpopular, political, and controversial topics can make us targets at work .

Rather than total authenticity, I recommend edited authenticity. Make deliberate, thoughtful choices, aligned with your professional environment, and seek counsel from trusted colleagues, coaches, mentors, or other allies if you're unsure of your potential impact.

Be aware that exceeding the normal  boundaries of behavior, personal appearance, and yes, individual expression, may jeopardize your career.

Remember, when we bring our whole selves to work, we are also carrying our reputations.

Want to assess, discuss, or enhance your reputation? Call or email me, and let's talk.


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Known as the "Gravitas Guru", Mayer is currently a senior fellow at the Logos Institute for Crisis Management and executive leadership, a leadership lecturer at New York University and Barnard College, and on the leadership council of the Financial Women's Association. 

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Raleigh Mayer

Raleigh Mayer, known as the “Gravitas Guru”, is an executive development consultant, coach, and speaker, specializing in presentation, communication, and leadership, including programs designed specifically for the career acceleration of female executives. Formerly a vice president and spokesperson for the New York City Marathon, Raleigh has coached and trained executive clients for more than a decade and serves a wide variety of Fortune 500 companies.  She is currently a senior fellow at the Logos Institute for Crisis Management and Executive Leadership, a leadership lecturer at New York University and Barnard College, and on the leadership council of the Financial Women’s Association.

Teach Your Children Well: Financial Literacy is the Key to Economic Success

By: Marguerita M. Cheng

Parents would not dream of raising illiterate children—why does it seem that to most parents, financial literacy is less important?

Not to me. As a Certified Financial Planner professional and mother of three, I believe that teaching children how to manage money is one of the most important responsibilities parents have.

Living in a consumer culture where delayed gratification seems like an outmoded concept, it’s’ not easy to keep kids financially grounded. However, by providing our children with firsthand experience in earning, saving, and spending their own money, they are more likely to develop a savvy sensibility and the framework necessary to manage their personal finances as adults.

Financial Literacy Is a Lasting Legacy

Financial literacy—understanding fundamental financial concepts and being able to make prudent financial decisions—will have a critical impact on many important aspects of our children’s lives, including:

  • Cash-flow management,
  • Saving,
  • Debt management,
  • Real-estate purchases and refinances,
  • Investments,
  • Investing planning for retirement and college education, and
  • Tax planning.

Additionally, individuals who are financially literate demonstrate a keen understanding of fundamental financial concepts, such as compound interest, the time value of money, use of consumer credit, diversification, tax-preferred savings vehicles, consumer rights, and more.

With student loan debt at crisis levels and many of today’‘s college graduates burdened by both high student-loan payments and a challenging job market, I encourage parents to adopt a proactive approach to the problem by raising financially literate children.

Since financial education is a natural contributor to economic success, I am passionate about helping my children understand the value of financial stewardship. I want them to be able to differentiate between needs and wants. I want to teach my children sound money-management skills that will serve them well throughout their lives.

Three Tips for Teaching Kids About Money

With the goal of financial literacy in mind, consider these three money-saving strategies to help teach your children how to best manage their money. They are simple and effective, even for children still in elementary school.

1. Create a financial mission statement for your family. Solicit input from your family about what each member thinks is important. Is it eating out, taking vacations, saving for college, or all of these goals? Have an open conversation with your spouse and children to encourage them to think about the meaning of money, the challenge of earning it, and the importance of saving for what they truly value.

2. Take opportunities in your daily activities to model how you make spending decisions. By discussing money-making decisions as you shop, cook, and pay bills, you provide concrete examples that your children can model. Plus, taking the kids to the grocery store and cooking dinner afterwards teaches them to apply their math skills in the real world. For example, having them bag groceries with you at the checkout shows them how much it really costs to fill up the fridge each week.

My daughter Sarina, who just graduated from high school, has worked as a swim instructor, lifeguard, and math tutor. Earning money has given her an understanding of how much she needs to work to pay for the things she wants. Working at a summer camp this year, she realized that by not taking a full hour for lunch, she could lifeguard for an extra 30 minutes and earn an additional $10 a day! The extra income benefited Sarina and the camp director, who was able to accomplish other tasks while Sarina was lifeguarding.

The value of money is not the only thing Sarina derived from her work experience. “Every teen needs to have work experience so that they know how to deal with people!” she says.

3. Allow children firsthand experience in earning, saving, and spending their own money. Allowances are great, as long as the kids actually do chores to earn the cash. Be sure to set up a savings account for them early, and consider allowing them to manage the records. Children can monitor their savings activity over the years.

By the time they become teenagers, the benefit of saving regularly over time will be apparent, because they will have some money to spend on clothes, food, and friends—and still save for college. And by the time they head off to the university of their dreams, they will be more likely to have a savvy sensibility about managing their expenses.

One of the hard parts of giving children some control over their own money is that they are sure to make some mistakes. It is important not to rescue them from every mistake! Children need the benefit of making their own decisions. By learning from their mistakes, they become adults who can manage their money well.

The Bottom Line

As 7th century Muslim sage Ali ibn Abi Talib espoused, ““There is no greater wealth than knowledge, and no greater poverty than ignorance.””

I hope you’ll consider these ideas for raising your own financially savvy children, and keep me informed of your progress. If you have any good advice on how to help your children become financially literate, please share them with me at mcheng@blueoceanglobalwealth.com.

For more information, visit www.blueoceanglobalwealth.com.

This article originally appeared on www.beinkandescent.com


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Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. Prior to co-founding Blue Ocean Global Wealth, she was a Financial Advisor at Ameriprise Financial and an Analyst and Editor at Towa Securities in Tokyo, Japan. She is a CFP® professional, a Chartered Retirement Planning Counselor℠, a Retirement Income Certified Professional® and a Certified Divorce Financial Analyst.

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Marguerita M. Cheng

Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. Prior to co-founding Blue Ocean Global Wealth, she was a Financial Advisor at Ameriprise Financial and an Analyst and Editor at Towa Securities in Tokyo, Japan. Marguerita is a past spokesperson for the AARP Financial Freedom Campaign and a regular columnist for Investopedia & Kiplinger. She is a CFP® professional, a Chartered Retirement Planning CounselorSM, a Retirement Income Certified Professional® and a Certified Divorce Financial Analyst. As a Certified Financial Planner Board of Standards (CFP Board) Ambassador, Marguerita helps educate the public, policy makers, and media about the benefits of competent, ethical financial planning. She serves as a Women’s Initiative (WIN) Advocate and subject matter expert for CFP Board, contributing to the development of examination questions for the CFP® Certification Examination. Marguerita also volunteers for CFP Board Disciplinary and Ethics Commission (DEC) hearings. She served on the Financial Planning Association (FPA) National Board of Directors from 2013 – 2015 and is a past president of the Financial Planning Association of the National Capital Area (FPA NCA) 


Rita is a recipient of the Ameriprise Financial Presidential Award for Quality of Advice and the prestigious Japanese Monbukagakusho Scholarship. In 2017, she was named the #3 Most Influential Financial Advisor in the Investopedia Top 100, a Woman to Watch by InvestmentNews, and a Top 100 Minority Business Enterprise (MBE®) by the Capital Region Minority Supplier Development Council (CRMSDC).


Marguerita’s mantra is “So many people spend their health to gain wealth, and then have to spend their wealth to regain their health” (A.J. Reb Materi).

How to Not Go Broke Supporting Adult Children

by David Ragland

You’ve worked hard, you’ve saved, you’ve downsized, and the nest is finally empty. Life is good. But then one of your kids loses his job. Or she starts falling further into debt. Or decides to send your grandchild to a private school he can’t afford.
Now what do you do? Is your only choice to dip into retirement to support an adult child? How do you manage the feelings of guilt and obligation versus your own needs?

Your Retirement Reality

Once the nest is empty, the kids are off the payroll, right? Or just theoretically? Because your retirement may depend on it, know that it is never too late to talk to your kids about money. Even if that “kid” is approaching middle age.
This is particularly true because during your last ten years in the workforce when you’ll most likely reach your maximum wealth-building potential and accumulate a significant portion of what you need for retirement. This is the time to put more into your 401K, downsize and reduce expenses, and really focus on reaching your retirement goals. Sure, there will be unexpected expenses, but ongoing unexpected expenses from your children shouldn’t be one of them.

Build Your Financial Support Team

But I know. You love your kids. You’ve made sacrifices for them since they were born. Shifting the dynamic can be hard when children become adults and their financial footing is still wobbly.
“These can be really difficult situations,” says Wendy Dickinson, PhD and licensed psychologist at GROW counseling in Atlanta. “When we have parents who are in a crisis because of a failure-to-launch young adult, or an adult child in a health crisis, or perhaps an adult child dealing with an addiction that becomes a bottomless money pit, one of the first things that we do is a thorough assessment. We need to determine 1) what is the goal 2) what would the parents not be able to live with and 3) to what extent the parents are willing to learn to set boundaries.”
Dickinson says that setting a goal is extremely important because it will guide the rest of the process:

  • Does the parent unit want to require the young adult to be responsible for their decisions?

  • Do they want to appropriately financially support them during a difficult time?

  • Do they want to provide for some but not all of their needs?

Essential to the process of goal setting is clear communication and a willingness for the parents to be open and vulnerable about what they are feeling and what they need.
“I always spend some time talking to parents about what they could NOT live with – it’s really helpful in establishing a threshold of behavior. For example, would they not be able to live with their grandchildren being hungry? Or their kids/grandchildren not having the medical attention they need? Sometimes parents will say they are not going to pay for anything, except unlimited counseling if their son/daughter is willing to participate with a goal of getting better. I find there are usually exceptions to what parents are willing to pay for, and in the process of setting boundaries it’s important to be clear about these exceptions upfront if possible.”
Finally, Dickinson says, the parent unit needs to learn to set boundaries. This can be a challenging because boundary setting has most likely been difficult for these parents during their child-rearing years. “Much could be written about navigating the process of boundary setting, but regarding the topic of money, I specifically think it’s important to be clear, consistent and compassionate,” says Dickinson.
“Clear and consistent relate to the goal-setting process and learning how to have difficult money conversations. The compassion that is critical is in separating the feeling from the behavior. It’s OK to empathize with your child even if you are standing firm on the financial support. Often parents interpret ‘boundary setting’ to mean they have to be cold, stoic, or disconnected. Rather you, as the parent, are the biggest cheerleaders for your kids – your encouragement can be the very thing that pushes them to take a risk and realize that with a little work they are able to achieve financial autonomy.”

Rounding out the Team

In addition to finding a counselor who can provide guidance and recommend strategies, you can also lean on your financial planner, accountant and/or attorney. You want a team that has your back especially as you get older. They need to understand your goals and your challenges — including your children’s financial situations — and be there to help you draw the line. They may need to play the bad guy and that’s OK.
You may also want to talk to your financial planner about including your adult child in a meeting so they can see the realities of your budget, as well as the benefits of a financial plan. And unless you can really afford it, don’t distribute an inheritance before you die. We’re all living longer and the expenses associated with aging continue to rise. You may need that money.
The challenges of family and money are nothing new, but how you deal with it can be. Communication is key as is finding the support you need to stay focused on what’s best for your situation. And know that regardless of how old your children are, it’s never too late.

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David Ragland

David Ragland is a Certified Financial Planner™ (CFP®), Certified Divorce Financial Analyst® (CDFA®) and Chief Executive Officer of IRC Wealth, a private asset management company based in Atlanta. Holding both a BBA and a Master’s degree in Accounting from the University of Georgia, David began his career in the tax division of Ernst & Young. He then served as CFO for several companies, gaining experience in taking companies public and propelling them on to the INC 500 List of Fastest Growing Companies. A vibrant, energetic speaker, best-selling author of Wealth Made Simple (yes, really), businessman and Ironman triathlete, David Ragland understands and articulates the core ingredients that motivate, energize and push people across their personal finish lines.

Instead of Spending, Teenagers Can Turn to Saving

by Samantha Cueto

When Should Teens Start a Savings Account?

As soon as a teenager begins to spend the money that they earn, they should start considering opening a savings account. According to an ING Direct study, a surprisingly large percentage of teenagers amounting to approximately 83% admit they are clueless when it comes to how they should be spending their money.

How Teenagers can Earn Money for Their Savings Account

Around 35% of teenagers attain jobs, according to a graph from the U.S. Bureau of Labor Statistics. This is a moderate percentage considering how most teenagers focus on educational classes or internships for their resumes during the summer. Teenagers can attain their money inside homes through some of these popular options:

  • Some teens can receive small allowances each week, in return for completing chores throughout the house. Yet there are fewer parents who have been giving their teenagers money, and may even consider the prospect of chores as something that is more of a responsibility rather than an optional task nowadays. Therefore, this option may not be the easiest opportunity to earn money, and can only depend on what a parent’s perspective of allowance is.

  • Teens can babysit or tutor their neighborhood’s children, if there are any parents actively searching for either a babysitter or tutor. Teens who enjoy being in the presence of young children may find this option the most appealing, but it does require knowledge on the academic subjects the child may be having trouble with, and how to take care of children in general.

Teens who desire to work outside of a home can consider other viable jobs to earn money, such as:

  • Some retail stores or fast-food restaurants are willing to hire any teenagers vying for the occupation. Teens can learn some basic skills such as how to operate a cash register or how supplies can be properly stored. Retail stores and fast-food restaurants offer small salaries and a daily schedule that can help any teen become slightly more organized.

  • Any small tasks teens can complete around their local neighborhood can help them earn some extra cash. Some conventional examples do include, but are not limited to: washing neighbors’ cars, mowing a neighbor’s lawn, and offering cool refreshments to anyone passing by that may look dehydrated. This option does not earn as much money for a teenager than the other aforementioned ones, and are more of temporary solutions.

Teenagers who earn the money from these jobs end up spending it rather than saving. Teenagers who are interested in their future should open a savings account to pay for their dream college and the expenses that eventually come when they reach adulthood, such as purchasing an apartment or paying their bills.

Why Teenagers Should Open Savings Accounts with Their Banks

Once a teenager signs up for a saving account with their chosen bank, they can begin depositing the money they earn into their account. A savings account can even limit the number of withdrawals to six per month, which can keep teenagers on a reasonable budget instead of splurging most of their money on shopping sprees. Savings accounts also come with interest rates.
An interest rate can be beneficial to a teen if they earn it correctly. Savings accounts add a certain amount of money to the current balance if it has been deposited there for a certain period of time. The amount of interest a teenager can earn in their account depends on how much money they have deposited into their account, the bank they created a savings account with, and the general interest rate of that aforementioned bank. A teenager must also keep in mind that they would have to pay a fee if they do not maintain a minimum balance on their account that some banks can require, but not all.
A teenager who has just commenced the process of searching for the right bank may be encountering some trouble. There are hundreds of different banks offering several different options that can be overwhelmingly confusing to a teenager. Not all of these banks offer the best deals or have a teenager’s interests in mind, but there are three options that have been narrowed down so a teenager can begin their search:

  • Capital One 360 Savings Account is a superb option for a teenager because there is no minimum balance or deposit that can come with most banks. Teenagers can also find their Automatic Savings Plan extremely helpful, which transfers money automatically to the account and can be adjusted or stopped at any time. The interest rate is only 0.75% per year, which may sound small but will have money growing in no time.

  • The Barclay Dream Account is an online banking account option that will earn the most interest. If deposits are made continuously for six consecutive months, there will be a 2.5% bonus on the interest earned. If no money has gone through withdrawal for six consecutive months, another 2.5% bonus will also be added on the interest earned. It also promises no monthly service fees have to be paid and there is no minimum deposit number to open the account.

  • All of Ally Bank’s accounts can be opened as a custodial account, meaning that a parent will have control over the account until the child they’re saving for becomes 18. In-trust accounts can also be opened, meaning the income can be split between a parent and their child once the child reaches legal age as well. Ally Bank doesn’t require a minimum balance when opening an account and no fees have to be paid monthly. The interest rates vary depending on which account a teenager and their parents decide to choose. CDs, or certificates of deposit, are also a viable choice in Ally Bank.


Samantha Cueto is a teenager herself. She is a rising sophomore at Dominican Academy in Manhattan.

Turn Your Kids Into Personal Finance Champs

by Manisha Thakor

Do your children think you are a walking ATM?

If you are tired of "must-have-that-toy-right-now" tantrums as you walk down the aisles of Target or Toys “R” Us, go straight to your nearest bookstore and buy Alisa T. Weinstein's new book, EARN IT, LEARN IT.  Alisa tosses the old allowance-based system of teaching your kids about money and replaces it with: J.O.B.S.  But not in the way you might think...

Innovative learning lessons can transform a child's life. When I was growing up one of my pivotal memories was sitting down with my dad who showed me how to calculate how much money I'd have in my IRA down the road if I contributed my babysitting and lawn mowing money to it and it grew at 6%, 8%, 10%, etc.  Yeesh. Once I saw that if I saved $2,000 a year (the annual max contribution back then) for 50 years and earned 8% average annual returns I'd have over $1,000,000 - I was hooked. It changed my attitude about money forever. Learning to be responsible with money became fun. Now most kids aren't as wonky as I was so punching the keys of an HP12C financial calculator might not do it for them, but I have a strong hunch Alisa's unique approach will.

How did you come up with this concept of using jobs to teach kids about money?

I credit my daughter completely. She wanted “one more lip balm Mommy!” and I thought 13 lip balms were plenty for a four-year-old (a four-year-old!). In my exasperation I told her to “get a job.” As soon as I said it, I just knew that was how she was going to earn her allowance: by test-driving real jobs.

How does EARN IT, LEARN IT work?

For the book, I interviewed 49 people with 49 different careers. I then translated their day-to-day responsibilities into kid-friendly tasks, many of which take 15 minutes. So when Mia was a Toy Designer, she cut out a paper version of her favorite stuffed toy and we talked about things like hard costs (which she apparently doesn’t have because “Mom, I don’t pay for [that stuff]. You do!”)

What is the most surprising reaction you've had so far from a child?

I say this with a big smile: the most surprising reactions don’t come from kids. The real surprise reactions are from parents, who didn’t realize it could be so easy, and take so little time, to get their kids engaged in something totally worthwhile.

What is the most common challenge parents have today when teaching their children about money?

It has to be just getting started. Talking about money makes people uncomfortable. On top of this, the traditional methods (paying for chores, odd jobs, or no strings attached) aren’t much fun. Since we’re all so busy, it would seem easier to avoid the subject altogether. But then you end up with a kid who thinks the world exists to provide her with another lip balm.

What have you personally learned about money while writing this book?

I was lucky. My parents taught me early on that what we do to earn money can be even more valuable than the money itself. Which means being more open to finding a career that simply makes us feel good. And this not only makes life richer, it makes living with (and learning about) money a lot more fun. [You can follow Alisa on Twitter at @EarnMyKeep]

What experiences have you had teaching your kids about money?


[Want more financial love? You can follow Women's Financial Literacy Initiative founder, Manisha Thakor, on Twitter at @ManishaThakor or on Facebook at /MThakor.]

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Manisha Thakor

From Manisha's linkedin profile page:

Manisha Thakor is the Director of Wealth Strategies for Women at Buckingham Strategic Wealth and The BAM Alliance. 

Manisha and her colleagues provide both evidence-based wealth advisory services for high-net-worth households and core asset management solutions for women and families nationwide with $80,000 or more in investible assets. 

An ardent financial literacy advocate for women, Manisha is the co-author of two critically acclaimed personal finance books: ON MY OWN TWO FEET: a modern girl’s guide to personal finance and GET FINANCIALLY NAKED: how to talk money with your honey. She is on Faculty at The Omega Institute and serves as a Financial Fellow at Wellesley College. Manisha is also a member of The Wall Street Journal’s Wealth Experts Panel, a member of the 2015 CNBC Financial Advisor’s Council, and wearing her financial educator’s hat serves as a part of TIAA-CREF’s Women’s Initiative. 

Manisha's financial advice has been featured in a wide range of national media outlets including CNN, PBS, NPR, The Today Show, Rachel Ray, The New York Times, The Boston Globe, The LA Times, Real Simple, Women’s Day, Glamour, Essence, and MORE magazine.

Prior to joining the Buckingham team, Manisha spent over twenty years working in financial services. On the institutional side she worked as an analyst, portfolio manager and client relations executive at SG Warburg, Atalanta/Sosnoff Capital, Fayez Sarofim & Co., and Sands Capital Management. After this she moved to the retail side and ran her own independent registered investment advisory firm, MoneyZen Wealth Management. 

Manisha earned her MBA from Harvard Business School in 1997, her BA from Wellesley College in 1992 and is a CFA charterholder. She lives in Portland, OR where she delights in the amazing Third Wave coffee scene and stunning natural beauty of the Pacific NorthWest. Manisha’s website is MoneyZen.com.

Is there such thing as a kid-friendly bank account?

by Stacy Francis, CFP®, CDFA

Have you ever given a dollar to your child and seen the expression of awe on their face? Imagine how that expression can change in a few years when they have their own bank account that has increased because of interest.  

The problem?  The high fees on low-balance bank accounts mean kids are likely to end up losing money. An ordinary savings account usually requires a balance over $200 to avoid those annoying monthly fees of around $3. This means that a child may pay $36 a year in fees and only earn 50¢ in interest.

The solution? Fortunately, many banks offer a no-fee, no minimum option for minors; however, they do not always advertise that fact--YOU have to ask. If you are lucky, you may find that some banks offer bonuses for kiddie savers like higher rates and prizes for deposits. Compare terms at local banks to find the best deal.

Keep in mind.. What matters most is the experience kids get when they go to the bank to hand over cash and they learn to feel good about saving money. This may be the best financial lesson you can give them.

 

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Finding the Money for a Baby

by Stacy Francis, CFP®, CDFA

A new mom the second time around, of course I run into many other new moms. Despite the lack of sleep, they’re all so radiant and happy. However, when they learn that I am a financial planner, a different emotion often surfaces - the feeling of being completely overwhelmed with new responsibilities. For most of us, it takes years and years to find the perfect father for our future child. We also tend to factor in safety and the quality of schools when shopping for our first home. Yet most of us fail to prepare for the financial impact of the new family member. Below are a few things you can do.

  1. Get the appropriate medical coverage. Make sure pregnancy checkups, birth, and hospitalization are covered. Of course, when your baby arrives, you need to add him or her to your policy.
  2. Acquire disability insurance before you try for a baby. Just in case, something should happen, you are covered.
  3. Find the right work-life balance. If your partner’s paycheck is big enough to support all three of you, you may want to take some time off to bond with your newborn. If you have flexible schedules, you may be able to take turns caring for him or her.
  4. Sort out childcare. This is an area where a bit of research can make all the difference. Between nannies, pre-schools, co-ops and other options, both quality and price tags vary widely. Don’t forget to take the dependent care credit on your tax return too!
  5. Cash in on your tax breaks. With the Child and Dependent Care Credit, you can save a bundle.
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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

The New Triangle Drama: Remarriage, Kids, and Inheritance

by Stacy Francis, CFP®, CDFA

It is rare that anyone cries in my office, but it did happen last week. A client reported between sobs that her dad had passed on a while back. Not only was she paralyzed with grief; she had also just learned that she wouldn’t get a dime out of his estate. It was all going to the twenty-years-younger woman he married three years ago. It felt, in her words, like a slap in the face. 

A sad story indeed, and more common than I think anyone would like. With an increasing number of people remarrying late in life, conflicts with children are on the rise – not just on a personal level, but financially, too. Unfortunately (and perhaps surprisingly), kids have very few rights in these scenarios. While it takes very little for a parent to disinherit a child, most states require that a surviving spouse receive between a third and half of the estate, at least (referred to as the elective share).

Sure, my client could make a court case out of it. Children often gain the jury’s sympathy in inheritance disputes. Unfortunately, the law is on the surviving spouse’s side.

The good news is: if you plan ahead, you can nip this ugly scenario in the bud and ensure that bereavement is the only reason your children cry at your funeral. Below are just a few ideas: 

  1. Skip the wedding altogether. Many couples who meet late in life opt to just live together, keeping assets separate and making life a lot easier for their respective children.

  2. Draft a detailed prenup. It may not be the most romantic thing to do, but it can make all the difference later on.

  3. Set up a Q-Tip trust. Q-Tip trusts are designed for this very purpose. When the parent passes on, the surviving spouse receives the income from the trust while the children hold on to the principal. Once the surviving spouse kicks the bucket, everything in the trust is paid out to the children. While Q-Tip trusts have their advantages, they can also create a lot of conflict- especially if the surviving spouse is young with a long life expectancy. Furthermore, setup costs can be substantial.

Comment

Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

The New Triangle Drama: Remarriage, Kids, and Inheritance

by Stacy Francis, CFP®, CDFA

It is rare that anyone cries in my office, but it did happen last week. A client reported between sobs that her dad had passed on a while back. Not only was she paralyzed with grief; she had also just learned that she wouldn’t get a dime out of his estate. It was all going to the twenty-years-younger woman he married three years ago. It felt, in her words, like a slap in the face.

A sad story indeed, and more common than I think anyone would like. With an increasing number of people remarrying late in life, conflicts with children are on the rise – not just on a personal level, but financially, too. Unfortunately (and perhaps surprisingly), kids have very few rights in these scenarios. While it takes very little for a parent to disinherit a child, most states require that a surviving spouse receive between a third and half of the estate, at least (referred to as the elective share).

Sure, my client could make a court case out of it. Children often gain the jury’s sympathy in inheritance disputes. Unfortunately, the law is on the surviving spouse’s side.

The good news is: if you plan ahead, you can nip this ugly scenario in the bud and ensure that bereavement is the only reason your children cry at your funeral. Below are just a few ideas:

  1. Skip the wedding altogether. Many couples who meet late in life opt to just live together, keeping assets separate and making life a lot easier for their respective children.
  2. Draft a detailed prenup. It may not be the most romantic thing to do, but it can make all the difference later on.
  3. Set up a Q-Tip trust. Q-Tip trusts are designed for this very purpose. When the parent passes on, the surviving spouse receives the income from the trust while the children hold on to the principal. Once the surviving spouse kicks the bucket, everything in the trust is paid out to the children. While Q-Tip trusts have their advantages, they can also create a lot of conflict- especially if the surviving spouse is young with a long life expectancy. Furthermore, setup costs can be substantial.
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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Nanny Tax 101

by Stacy Francis, CFP®, CDFA

I do not make it a habit to eavesdrop, but the girls at the table next to me at the smoothie bar this morning were so loud and animated, there was no way around it. They were all international students, pushing the benefits of babysitting to the newest girl in the gang. It’s the perfect extra job, they said, because you don’t need a work permit.

Most moms will know this isn’t true. But since this isn’t the first time I have encountered this misperception, allow me to shed some light on employees in your home and taxes.

If you drop your child off at a sitter’s house on your way to work, and pick him or her up on your way home, the babysitter is not your employee. However, if your nanny works in your home and under your direction, she is considered an employee - regardless how many hours per week, month or year she does so. This means you both have to pay taxes. In order to do this, your nanny needs a work permit.

Now that we’ve gotten that part straightened out, let’s put this into numbers. If you pay your employee $1,400 per year or more, you need to withhold 7.65% percent from his or her paycheck, and then match this (a total of 15.3%). Minors under 18 and relatives such as parents and spouses are exempt from this rule.

If your employer has a childcare spending plan, you may be able to save some on your taxes and put money away pre-tax, to use for childcare. Even if you do not have access to such a plan, you may still qualify for a dependent care tax credit of 20-35% of the first $3,000 you spend ($6,000 if you have more than one child).

So while it may come as a surprise that such transactions are subject to taxation, you get a break, too. Not too shabby, is it?

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

5 Money Lessons for Teens

by Stacy Francis, CFP®, CDFA

I read in the newspaper the other day that in a survey, high schoolers answered only 48% of basic personal finance questions correctly. The number was only slightly higher – 65% - for college students. This is scary, as good money management skills are crucial for success – and for peace of mind. Since it all starts at home, below are 5 great money lessons that can help your teens get ahead in life. 

  1. Budgeting. How many teenagers do you know who always run out of money mid-month, and beg their parents for more? Teaching your teens to prioritize can make a huge difference as they grow into adults.
  2. Establishing credit. Regardless of how you feel about credit, the minute your teens are off to college, their mailboxes will brim over with credit card offers. If you teach your teens to handle credit while they’re at home still, the damage is likely to be much smaller.
  3. Differentiating wants from needs. This is a crucial skill in all aspects of life and no less important when it comes to money.
  4. Filing tax returns. By becoming familiar with the filing process and learning a few tax smarts, your teens can save a ton of money later on.
  5. Taking all costs into consideration. Many teens tend to forget about things like insurance, maintenance and repairs when estimating how much their next car is going to cost them. Taking all costs into consideration when making a money decision – no matter the specific circumstances – may be the most valuable money lesson of all.
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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Top Ten Money Mistakes New Parents Make

by Stacy Francis, CFP®, CDFA

When I showed up at a recent Savvy Ladies seminar with my big belly, naturally, the conversation gravitated toward money and parenthood. Many soon-to-be and new mothers expressed concern about making financial mistakes that could hurt their babies. Below is a list of ten common money mistakes new parents make, so that you can learn from them and make wiser choices.

  1. Ditching life insurance. Death is an awkward topic – but so is the one of your child not being provided for in case of an accident.
  2. Ditching disability insurance – ditto.
  3. Missing out on the tax benefits generated by their newborn. Talk to your accountant or financial planner – you’ll be glad you did.
  4. Overspending on baby stuff. Your new baby needs many things in order to be comfortable, safe, and happy - but not a $2,000 stroller and an all-label closet.
  5. Acquiring life insurance for their child. Life insurance is supposed to make up for the loss of income your family would suffer if you kick the bucket. While the loss of a baby surely would be a major tragedy, it would hardly cause financial hardship.
  6. Getting so worked up over the baby’s savings, they forget to set money aside for their own retirement.
  7. Delaying college savings. No dollar will matter more than the ones set aside early on. Even if you can only afford tiny contributions, keep at it.
  8. The UGMA account trap. Not only will your child be free to do whatever he or she wishes with the money when he or she turns 18 or 21 (this varies by state), but large savings in your child’s name will reduce the amount of financial aid for which he or she is eligible.
  9. Not writing or rewriting their will. Make sure your baby’s fate is in your hands and not some stranger’s.
  10. Making the decision of whether to stay at home or keep working all about salary versus childcare costs. It’s much more complex than that! You also need to consider things like commuting costs and the value of the benefits package provided by your employer – and of course what you want to do!

 

 

Stacy Francis, Savvy Ladies

www.savvyladies.com

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

3 Money Lessons for Pre-Schoolers

by Stacy Francis, CFP®, CDFA

In the park this weekend, one of the moms shocked me by telling me that her 5-year-old son recently asked her about car financing. Why, he wanted to know, can’t we have a Ferrari? It won’t cost anything – we’ll even get cash back!  

Advertisers are well aware that small children pick up on basic money concepts. Yet many parents wait until their children reach adolescence – if not forever – to teach them proper money management. To ensure that you and not the advertisers will shape your children’s relationship to money, below are a few money lessons you can teach them while they are still in preschool.  

  1. Money can be saved or spent – but not both. The best way to teach your children saving is to start setting money aside for a certain toy that they really want. Your children will learn the value of saving when they hold that precious toy in their hands.
  2. Once money is spent, it is gone. Many children seem to believe that money grows in their parents’ pockets – and just as many parents support this belief by acting as though it does. You can get your message across by giving them a dollar, allowing them to spend it in the store, and then not giving them another one next time they want to buy something.
  3. People have to make money choices. Most adults don’t do this well, so it would hardly be fair to expect great choices from preschoolers. But if you give your children an allowance, and when it is spent make them wait until next week before you give them any more, eventually the message will start to sink in that when they choose to buy something, they automatically un-choose to buy something else.
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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

5 Vital Questions for New Parents

by Stacy Francis, CFP®, CDFA

Shopping for my new baby earlier today, I met two very anxious soon-to-be mothers. Talking to them made me realize how much easier it is to be pregnant the second time around. Not only am I more relaxed about everything, but I also know what needs to be done, both around the house and financial planning-wise. For those of you still on your first child (or planning to have one in the future), below are five crucial things to ask yourself during those first, tired months to make sure you are on track. 

  1. Have you updated your will to include your newborn? Many new parents have neither wills, nor have never seen the need for them in the past. With a little one to care for, this all changes.
  2. Have you set up a college savings plan? I am aware that college is eighteen years away. But as I have mentioned before, due to the concept time value of money, no dollar is going to make more of a difference than the ones set aside early in your child’s life.
  3. Have you acquired life insurance? True, it is unlikely that you and your spouse will die in the near future, but accidents do happen and you will sleep better at night knowing that your baby would be provided for in your absence.
  4. What about disability insurance? The thought of becoming disabled is no more pleasant than the one of dying, but since it will be many years before your son or daughter will be able to support him or herself, you need to be prepared for everything.
  5. Have you factored in the increase in your cost of living? There are cheaper and more expensive ways to raise kids. From helpful grandparents to nannies, hard-working parents to stay-at-home moms, the cost can vary widely, but according to statistics, the average cost for raising a child in the US is $250,000.
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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

The iPod Issue: How Much Can -and Should- You Spend on Your Children?

by Stacy Francis, CFP®, CDFA

I took the subway uptown today, to meet a colleague at a favorite lunch place. Turns out, the subway I was in also had twenty-something ten-year-olds, on a field trip coming back from the New York Stock Exchange. As Sebastian is only three, I don’t spend a lot of time around older kids. Now, I couldn’t stop staring at their iPod Nanos, glossy cell phones, Seven jeans and designer handbags.

It got me thinking about the finances of reproduction. How much do parents spend on their children these days, and how much should they spend?

A bit of Internet research told me that the average family spends $7,500 per year and child, not including added expenses pertaining to the increased living space. If you have enough money to set 10% aside for retirement savings, live comfortably, and stay out of debt while spending $7,500 per child -- go for it! But if you have to cut back on savings, skimp on your own needs or pull out the plastic, you should consider cutting back. But how do you make this happen without turning into the mean mom on the block?

An excellent way to go is to give your children some financial responsibility. If you increase their allowances, and in return require that they buy their own clothes, they may think twice about those $200 jeans when they see everything they have to pass up to get them.

Other ideas include sticking to the cheap stuff while your child is still too young to care about brands -- and outgrows things quickly. Vintage stores for baby clothes can be true treasure chests – and you can sell the clothes back when your child has outgrown them. You can also scale down on things like extravagant birthday parties, and of course, encourage your children to take on part time jobs when they grow older. I know that my years at Dairy Queen helped me become the hard-working successful woman I am today!

 

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Lending Money to Family and Friends

by Stacy Francis, CFP®, CDFA

I received an interesting email this morning. It was from a mother-of-two in her early thirties, who was broke because over the past five years, her parents had continuously borrowed money from her, supposedly to get into some miraculous investments bound to triple within six months. Of course, none of these had worked out, so they didn’t have any money to pay her back. Her children needed new clothes, she needed a new car, her husband needed a vacation . . . and her parents were giving her guilt trips for refusing to lend them more money. When she told me this story I had to keep myself from asking her parents phone number and calling them to give them a piece of my mind!

This situation may sound terrible, but I have heard similar stories before. Which is why I generally advise against lending money to family members and friends. Many friendships have ended this way, and within families things can – and do -- get really ugly. Your own children can be exceptions, but even there, make sure you

  1. Put everything, including amount and conditions for the loan, on paper,
  2. Have a clear payback plan, and
  3. Don’t lend them another dime before they have paid back the original loan.
  4. Use a lender like Virgin Money to legitimize the loan so that you protect your assets.

Like I said, in 99% if the cases, don’t do it. But if you are going to anyway, at least make sure you cover the steps above.

 

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Should Your Kids Have Credit Cards?

by Stacy Francis, CFP®, CDFA

The children in front of me in line at the grocery store today were no older than eleven or twelve, yet when the time came to pay for their snacks and sodas, they pulled out their MasterCards. I started to wonder, is this normal now? Do all kids and teens have credit cards and – even more importantly – should they?

I started thinking about my son Sebastian. When should he get a credit card? He is only 21/2 but is the right age 10,15 or 20?

This, of course, depends – on everything from your financial situation to your relationship to your children, and in turn, your children’s relationship to money. But generally, I would advise against it. After all, you want your children to develop a healthy relationship to money – one where they spend no more than they earn, preferably a bit less. If money seems to appear out of nowhere (like, out of your bank account) to bail your children out when they get into trouble, chances are they will get themselves into much more trouble later on, when sums and stakes are higher.

There is, however, one major exception: secured credit cards, where you or your children (or both) deposit a certain amount into an account, and your children can learn how to manage money the way most adults do.

If your children are very mature and financially responsible, it may not be a bad idea to allow them to carry plastic as long as you can manage the account with them. But for the grand majority, stick to ATM cards, secured credit cards or good old-fashioned paper bills.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

What Size Allowance Should I Give My Child?

by Stacy Francis, CFP®, CDFA

At the park today, the moms were discussing allowances. At what age should a child start to receive them, and how much is appropriate? All at once they stopped and asked me, “You are the expert, tell us what to do!” Talk about pressure. I took off the mom hat and put on my financial planner thinking cap.

There are almost as many theories for this as there are experts in the field. The most common system seems to be to give the child $1 per week and years of age. Meaning, for instance, that my son would receive $3 per week, and my friend’s six-year-old daughter $6. But of course, the right amount will also depend on other factors such as

  1. Your child’s attitude toward and awareness of money. Before he or she appreciates it, there’s little point in throwing cash his or her way.
  2. What sorts of expenses your child is expected to cover in exchange for the money. If he or she, for instance, needs to cover friends’ birthday presents and some or all of his or her own clothes, he or she will need a lot more than he or she would if the money were for entertainment only.
  3. How much you expect your child to save. Many parents take care of their children’s savings for them, but if possible, I always recommend that you give him or her enough money to set some aside and watch it grow. For many children, this is an invaluable lesson.

Of course, both the sum and the level of responsibility will change as your child grows older. The most important thing of all is therefore to keep an open mind and constantly rework your allowance system as your circumstances change.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Talking to Kids about Money

by Stacy Francis, CFP®, CDFA

During a dinner party last weekend, a woman told me her son had taken her by surprise by asking “are we rich?” She said she was dumbfounded, and as she had no idea how to respond, she mumbled, “no.” Her son got extremely anxious, and she spent the rest of the evening trying to comfort him. Below is some advice, so that the rest of you can be prepared in case your son or daughter . . . pops the question.

If you do have a good amount of money, tell your child that you have enough to be comfortable. If possible, avoid going into sums and too much detail – most children won’t grasp them anyway. They just want to know that you are OK.

If, however, your child insists and starts asking for numbers, tell him or her that you are doing better than most. This should still his or her curiosity.

If, on the other hand, you are not doing so well, the situation gets a little trickier. You don’t want to worry your child, but at the same time you don’t want to lie. Tell him or her that you are doing alright, and hopefully will do even better in the future.

As a general rule, stay as close to the truth as possible and avoid details.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.