Young Adults: Financial Lessons Series - PART I

This blog series began out of a desire to have a conversation about personal financial habits and building an estate. There have been numerous educational books written on these topics, but some can be outdated. Others start out as page turners, but halfway through transform into soapboxes. The point of this conversation is for it to be a discussion, where mistakes are educational, points are reviewed, and people learn instead of being lectured. 

This series is not just focused on accumulating wealth, but how and when we apply the financial lessons we have learned. It is about honoring individuals who chose to share hard-learned experiences from their lives.

​The experiences and wisdom that have been passed on from parents, teachers, mentors, friends, and peers, provide a financial foundation. Knowledge passed from one generation to another is invaluable, but meaningless if not put to good use. As an advisor, my ambition is to help answer, “How are we being responsible to those we care about?”

PART I: Estate Building: Lessons for Every Generation

​We are approaching the greatest transfer of wealth in our lifetimes, which is projected to occur by 2030. Now is the perfect moment for young adults (Gen X and Millennials) to engage in financial conversations with your parents, peers, and friends. These conversations can be uncomfortable but are necessary. Missed opportunities and potential tax bills await those who do not speak up and prepare. In this series, we will discuss how and when to act by leveraging this knowledge for long-term financial success.

The Importance of Financial Wisdom

​Understanding how to set up an estate or manage investments is important, but only impactful once implemented effectively. Putting a financial plan in place goes beyond creating a monthly budget or knowing the differences between Qualified vs. Non-Qualified Accounts. Individuals can limit a financial plan as well. Once implemented, do you have the self-discipline and patience to stay committed to a long-term plan?

People who say they can, and people who say they cannot, typically have one thing in common: they are both right. Knowledge is understanding, but wisdom is how one leverages these insights. 

Tailored Financial Discussions

Financial discussions are for everyone - parents looking to impart financial wisdom to their children, young graduates who have just entered the workforce, or busy professionals balancing mortgages, college funds, and retirement savings.


Here is a breakdown of who can benefit:

• Parents: If you did not receive financial education growing up, now is your chance to learn and pass on those lessons. We will explore ways to tutor your children about budgeting, saving, and investing - skills vital to their future.
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• Recent Graduates: At 18-25, the world is full of possibilities and hurdles. Beyond setting up an initial monthly budget, we will discuss saving for emergencies, understanding credit, and the importance of starting early. Time is your greatest asset and compounding interest is your friend, but only if you take advantage of both. 
  
  
• Mid-Career Individuals: For those in their 30s-40s with family responsibilities, we will discuss strategies for managing multiple financial demands. How to balance mortgage payments, college tuition, and retirement savings effectively. What questions to ask and topics to start bringing up so you can have a conversation with your parents. 

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Structuring Your Personal Financial Future

Throughout this series, we will provide rough outlines and structures for your financial plans. The idea is not to provide a one-size-fits-all solution but a framework that you can customize according to your circumstances. We will also encourage you to answer the tough questions, such as:

• What are my financial priorities?
• When do I need to start setting things up for my future?
• Is this the best option, or the most convenient?
• How am I being accountable to those I care about? 

​Everyone's financial situation is unique, shaped by different demands and priorities. I plan to share what I have in place and my thoughts on appropriate strategies. While you do not have to follow my approach to the letter, my experiences, and the experiences of others, may resonate and help you develop your own estate structure.

Conclusion: The Impact of Taking Action

As we prepare for this historic time of wealth transfer, we need to discuss and implement all the financial lessons we have learned. You do not need to wait until you meet a subjective milestone to start. This series can be your resource for a financial foundation. We want to enable you to achieve your goals and ensure financial security for yourself and your loved ones.

Stay tuned for our upcoming blogs, where we will delve deeper into specific financial topics, answer your pressing questions, and guide you in becoming the financially savvy individual you aspire to be.

Remember, knowledge is power, but wisdom is the key to unlocking your financial potential.

Empowering Generations,

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Riley

Ryland Hudack
​www.financialsynergistics.com