Who Was Your First Financial Advisor?
When we think of financial advisors, we often think of people in suits with charts and financial plans. But our first “financial advisor” is usually someone closer to home—a parent or friend who influenced our money mindsets. While they didn’t provide professional financial advice, they may have shaped your feelings towards saving, spending, and other money matters.
Family: The First Financial Guides
For many, the initial lessons about money management come from family. Maybe your mother frequently reminded you to “save for a rainy day,” or your father emphasized living within your means.
Growing up in a financially cautious household might make you naturally more conservative. Or maybe it makes you more of a free-spender, yearning for what you felt you lacked? We’re not psychologists here, but it’s safe to say your family had an impact.
You might also look at your general wealth level and its impact on your psyche. Growing up poor shapes you in different ways than growing up with generational wealth.
Friends and Peers: Financial Lessons Through Observation
As we move into adolescence and adulthood, friends and peers begin to play a more significant role. Observing a friend save for a big purchase or invest wisely can inspire similar habits. Witnessing poor financial choices—like racking up credit card debt or reckless spending—can serve as a cautionary tale. Recognizing these influences is key to understanding your financial decision-making.
Learning Through Absence: The School of Hard Knocks
Not everyone has a financial role model growing up. Some people learn through the absence of advice, which often means trial and error. This path can be challenging, but it also fosters resilience and adaptability. By learning from your mistakes, you develop a more nuanced understanding of money management over time.
Empowering Others
As you age, whether you're aware of it or not, your financial decisions, habits, and attitudes can serve as a guide for those around you—be it your children, friends, or colleagues. Just as you once learned by observing the financial behaviors of your parents or peers, others are now watching you.
By consciously embracing this role, you have the opportunity to model healthy financial habits. Your approach to managing money—whether it's about budgeting, investing, or making smart spending choices—can inspire those who look up to you. Even small actions, like discussing your savings goals or explaining the reasoning behind a financial decision, can have a meaningful impact.
Ultimately, the influence you wield can empower others to make better financial choices, avoid common pitfalls, and perhaps even change their financial trajectory. Your journey doesn't just end with understanding your own financial influences; it extends into becoming a positive influence for others, helping them build their financial confidence and security.
Material prepared by Oechsli a third party non-affiliated with Raymond James.
Any opinions are those of Steven Bayardelle or The Wang Group and not necessarily those of RJA or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. You should discuss any tax or legal matters with the appropriate professional.
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The examples referenced herein are hypothetical and are not intended as investment advice. Please consult with your financial advisor if you have questions about these examples and how they relate to your own financial situation.
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