What is your money story?
We all have a money story.
This story can be influenced by our families of origin, our class, our race, and our lived experiences. There can also be narratives and beliefs inherited by generations past that are no longer serving us. Over time this story develops and can create positive and negative realities in our relationship with money.
Once we discover the aspects of your money story, we can craft a vision of your present & future money story and ensure your investment portfolio is in alignment.
Below are four money stories crafted from common narratives I have witnessed in my clients over time.
Note: The stories are meant to elicit reflection on your own story and are by no means an exhaustive list of the spectrum of money stories.
Money Story 1: The Self-Established
Profile
I am a woman who is the breadwinner of the family and am responsible for the money decisions and management of my family. I am a professional academic in my mid 40s. I have 3 children.
My Story
I learned from an early age that money is the way to achieve certain safety elements in my life. Growing up with parents who worked hard, but never had extras I knew I wanted to provide more for my kids. I paid my way through school and have worked very hard to build a comfortable life for my family. I have always been conscientious about my spending/saving and now I am in a place where there is a growing surplus of money to be invested. I want to see this money grow into possibilities for my children’s futures. Money is not about status; it is about safety.
Money Story 2: Retirement
Profile
We are a married couple who have spent our lives building wealth for retirement. We had white-collar jobs and lived a generally upper-middle-class life. We are eager and excited to build a financial plan to allow for financial freedom in retirement.
Our Story
We worked our lives to ensure we had money to provide for our family. We believe money is the key to accessing a healthy future for our kids. We paid for our children’s university and are proud that they did not accrue debt in that phase of their lives as we did. And we take comfort knowing the same will be true for our grandchildren. We essentially worked this hard our whole lives so that we could spend the later years in a phase of enjoyment. We believe life is about working so that you can live joyfully. Although we are excited to enter this phase, feelings of scarcity can arise as we think of the potential of not having a pay cheque. The concept of “running out of money” lingers deep in our minds as we plan.
Money Story 3: Grief and money
Profile
I am a middle-aged woman who recently found myself suddenly responsible for wealth due to a divorce or death. I am emotionally fatigued and money is causing stress and uncertainty in my life.
My Story
I have never been responsible for large sums of money before. I usually had someone helping me to take care of the various aspects of money. I am highly focused on making sure I am “smart” with this money because I am feeling unclear on how to proceed. Money is now jaded by tragedy/heartbreak, so I am guarded about the idea of creating a healthy relationship with money. All of the jargon makes me feel very overwhelmed and my nervous system shuts down easily when talking about money for any extended length of time. I was always taught that money is important, but I was never taught that I was capable of managing it. I have an unconscious belief that I am not well-suited for this responsibility.
Money Story 4: The Young Planners
*Hint: this is important to read as young planners, and parents of young planners*
Profile
I am what you might call “second-generation money”. My parents are new to money and are proactive in bringing me and my adult siblings into the money journey now so that I can grow discernment as I build my own wealth and eventually inherit that of my parents.
My Story
I watched my parents create a life of financial success. When I was born, we did not have money and through entrepreneurship/professional success my parents began to earn more and more. By the time I was in high school, we drove nicer cars and went on vacations and I was lucky enough to have my university paid for. I was always taught the value of work ethic and earning my own money, so the idea of getting a wealth transfer from my parents is something I am getting used to. At this point, I understand that I am positioned to hold a lot of wealth in the span of my life. I want to make sure I am working with someone I trust to help me understand how to do this with integrity.
In reading these 4 stories, has any parts of your own money story come to mind?