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A Financial Life Planning Guide for Young Entrepreneurs

As a 40-something mom, female entrepreneur, CPA, and advocate of Financial Life Planning, I’ve taken a unique approach to educating my kids about money. My message is clear and consistent: after college, you’re on your own financially, so manage your money accordingly. And trust me, they’ll thank me later—just as I’m thanking my parents now for the valuable lessons they instilled in me, despite the financial challenges they faced.

From Immigrant Roots to Empowering the Next Generation

My journey began with my parents, first-generation immigrants who couldn’t afford to finance my college education. Their struggles and sacrifices laid the foundation for my understanding of financial responsibility and the value of financial Literacy. This background has profoundly shaped my approach to parenting and how to manage your money.

Investing in Our Children: A Privilege and a Responsibility

Unlike my upbringing, I’ve been able to provide my children with a life of privilege. I made a conscious decision to invest in them not just financially, but with my time, often putting my entrepreneurial aspirations on hold to be present. We’ve created countless experiences together and yes, there have been gifts. But with each experience and gift came a lesson in appreciation and understanding of value.

  • Time Investment: By choosing to pause my fearless entrepreneurship at crucial moments, I showed them that time is our most wealth-building asset. We used this time to bond, learn, and grow together.
  • Experiences Over Things: While we enjoyed family vacations and enriching activities, each experience was coupled with discussions about money management, budgeting, and the value of memories over material possessions.
  • Thoughtful Gift-Giving: When giving gifts, we always discussed the thought process behind the purchase, the budgeting involved, and the importance of gratitude.

Teaching Value in a World of Plenty

Despite their privileged upbringing, I’ve been adamant about teaching my children the value of what they’ve been given:

  1. Chores and Allowance: Implementing a system where they earn their allowance, teaching the correlation between work and reward.
  2. Donation and Charity: Regularly involving them in charitable activities to develop empathy and understand their privileged position.
  3. Cost Awareness: Openly discussing the costs of items and experiences, helping them understand the real-world value of things.
  4. Delayed Gratification: Encouraging saving for desired items rather than immediate purchases, teaching patience and financial planning.

The College Years: A Launching Pad, not a Lifetime Ticket

I’ve been incredibly fortunate to support my kids through college, a stark contrast to my own experience and a privilege I don’t take lightly. With friends still paying off student loans in their late 40s, I acutely understand the value of this head start. But I’ve always been crystal clear – graduation means financial independence. This isn’t about cutting them off; it’s about giving them wings to soar on their own, armed with the lessons and experiences we’ve shared.

A Fearless Entrepreneur and Mother’s Wisdom for Gen Z

To all the Gen Z’ers out there, and especially to my children, remember:

  1. Financial independence is empowering – it gives you the freedom to make choices
  2. Budgeting is your superpower, not a bad word! It’s the roadmap to your financial life planning and dreams
  3. Every financial decision is a learning opportunity (I say a “blessing or a lesson”) – there are no failures, only feedback
  4. Gratitude and smart money management go hand in hand – appreciate what you have while working towards what you want
  5. Build wealth: Invest early and often – time is your greatest asset in building wealth
  6. Understand the difference between good debt (investments in your future) and bad debt (high-interest consumer debt)
  7. Remember your roots and the sacrifices of those who came before you – use their lessons as motivation

By cutting the financial cord early, we’re not being cruel – we’re equipping our kids with the tools to thrive in an ever-changing financial landscape, and giving them a financial education is the best gift. We’re teaching them to fish, not just handing them fish. And that, my friends, is the greatest gift we can give them, honoring the dreams and sacrifices of the generations that came before us.

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Financial Life Planning

Sherron Permashwar is the go-to expert on all things financial. Reach out today to schedule Sherron as the guest speaker in your High School Financial Literacy Class.

The information and views on this post is provided for specific subject matter only, and does not reflect official opinion or position of the modern savvy CPA LLC, or Sherron Permashwar, CPA. The Modern Savvy CPA LLC or Sherron Permashwar, CPA were not engaged in providing legal tax or accounting services. Before taking any action based on this information, we strongly encourage you to consult with a professional accounting or tax advisor about your specific situation.