Money Musings: Important 💰 Family Convos
Around here we talk a lot about money goals. And for many in the Fiscal Femme community, being able to take care of parents or elder dependents is a future money goal or current reality. So, we want it to be part of our financial plan.
One of the hardest parts about this type of financial planning is having tough conversations with those you care about. I know… It’s never fun to talk about what happens when someone is unable to care for themselves or passes away. BUT I promise, it’s worth it.
A great place to start is by asking the person or people about their wishes. How do they want to be cared for? Where do they want to live? In some cases, they might not have even thought about it yet. Having these conversations gives them a chance to plan for themselves as well.
Then it’s really helpful to understand what resources they have available, if any. This can provide a lot of clarity and can help you feel more confident in your planning. It also helps those you care about take a financial inventory. Win-win.
There are also important estate planning documents like a healthcare proxy, living will and financial power of attorney that you’ll want to make sure they have in place. Spoiler alert! 💥 We talk about them in the book!
Just like with other big goals like retirement, there will be many unknowns, which can make planning more daunting. Do your best to guesstimate with the info you have. Starting is always better than waiting until you have all the information. You can revisit and adjust these estimates once per year at your Money Party.
Who’s taking on one of these important money conversations this week?
MONEY MOVE OF THE WEEK
KEEP A MONEY JOURNAL
Most of us have no idea where our money is going - and we don’t want to look because we’re afraid of what we might find. 🙈 Technology makes it so easy for us to remain in the dark. When I first started keeping a money journal, I was shocked to see how much I spent on dining out. 🍳 Although I loved the time with my friends, I would have rather spent SOME of that on something else.
Keeping a money journal allows us to know exactly where our money is going. It’s about awareness. If we don’t like what we see, we can make adjustments so that we’re spending our money on the things we love and enjoy most! Keep it simple: start by writing down everything you spend along with what it costs in a notebook, the notes on your phone, or in my free template.
YOU GOTTA SEE THIS
DEFINE: FINANCIAL ADULTING.
Financial Adulting = the act of being a Financial Adult.
Here’s how I define a Financial Adult.
A Financial Adult...
Takes small, consistent steps that add up to big results
Understands what’s happening with their money
Feels confident in their financial plans, knowing they will get to have and experience what they want in life (which is the whole point of having money anyway!)
Understands the critical context of equity and personal finance: recognizes that privilege can and should be used to help close racial and gender wealth gaps, or realizes that they may be starting at a disadvantage due to historic and systemic obstacles
Use it in a sentence: “In 2022 I'm committed to financial adulting!” Said as I start my new money journal (the money move this week!).