Money Maven Says No Tricks In Finance, Just Practical Financial Security: Part 2

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In this second part of our interview with personal finance coach Patrice Washington, we discuss the difficulties of allotting appropriate savings to designated funds.

When children are thrown in the mix, finances seem to become a bit more taboo, a bit more difficult to organize. Washington said that doesn’t have to be the case. Through respect of money, respect of self and a strategic discipline, planning for your own future and that of your children does not have to be a Herculean feat.

Read part one of this interview here.

There Are No Scholarships For Retirement

BZ: We’ve talked earlier about how savings strategies shouldn’t be treated as cookie-cutter techniques. Sure, I get that. But, how can you decide on where your savings go? How much weight does each need get?

PW: I highly, highly suggest the first thing you fund is an opportunity fund, so that you are prepared for real life. Then, have something saved for retirement.

Be real. There are no loans for retirement. In college, you can work; take advantage of work study, grants, scholarships, loans. There are no grants, scholarships or loans for retirement. So, we have to be very mindful of that. Do the work upfront and establish good money habits.

Related Link: Kiplinger Unveils A Different Way To Plan For College

Meanwhile, talk to your children about scholarships and saving for college now.

Our own retirement is really important. We don’t have any options. As we plan for our retirement, we can make sure we are doing what we can for our own future while making sure our kids build themselves. Help them build a self, a brand, a reputation that they could capitalize on as they grow.

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Children And Our Future, Their Future

BZ: You emphasize talking to kids and being open about savings for their future and for your own. How can you breach that subject?

PW: Save, Give, Spend. That’s our approach. Whenever our daughter gets birthday money, or finds change or whatever, we sit down with envelopes and go over "Save, Give, Spend." What goes into her bank account? What will she give to charity? What can she spend? Be real. Be real with your kids.

You have to save where you can. What you nurture grows. When you show respect for your money, for the big WHY – college, retirement, what have you – I truly believe you begin to attract other opportunities. Why? Because you are being a better steward. You’re not wasting or waiting. Trust the process and be in a place of gratitude.

How To Save And Make It Work

BZ: Looking at all of this though - opportunity funds, retirement, helping your kids save for college - how do you get there? Nine months of savings for this, six for that, 25 years for retirement…it’s a lot of money.

PW: I want people to see that your first milestone doesn’t have to be nine months. That’s daunting. That’s scary. That’s intimidating. But, if you say, “how can I get my first $250 saved?” and go a month without touching it. First milestone met. Second milestone? $500. The next? $1000. The next: one month, then two, so on and so forth.

It doesn’t matter that it takes you long, as long as you have a plan in place and you can see what you are building up to. Make it achievable. Make it practical.

BZ: Thank you so much for your time today! On behalf of myself and Benzinga, I truly want to say how appreciative we are of your time and expertise.

You can follow Patrice Washington on Twitter @SeekWisdomPCW.

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Posted In: Personal FinanceInterviewGeneralMoney MavenPatrice WashingtonReal Money Answers
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