Nurturing Financial Leadership Within the Family: Building a Legacy of Financial Empowerment

May brings so much with it! The start of new season and an opportunity to check in on goals to assess progress thus far. This is a great time of year to consider progress on your financial leadership goals which include personal finances, your financial literacy development and educating your young people on theirs.

Setting goals, maintaining a budget, planning for the future and enjoying the present are all habits that need to be developed and nourished. Haven’t gotten started? No worries, we will outline some basics to consider and provide some tools to support in this months “Courageous Village".

In the heart of every family lies the foundation of financial leadership—a commitment to stewardship, resilience, and prosperity. As we navigate the complexities of managing household finances and planning for the future, the role of financial leadership within the family unit becomes increasingly significant. In this special edition of our newsletter, we explore the essence of financial leadership in the family context, offering insights, tips, and strategies to empower families to cultivate a legacy of financial empowerment and security.

At its core, financial leadership within the family encompasses a range of responsibilities and practices aimed at fostering financial well-being and stability. It involves making informed decisions about budgeting, saving, investing, and managing debt, all while aligning these actions with the overarching goals and values of the family. Whether it's setting aside funds for education, homeownership, retirement, or charitable giving, effective financial leadership requires foresight, discipline, and a willingness to adapt to changing circumstances.

One key aspect of financial leadership witihin your family is the cultivation of financial literacy and education. Now, I know some of us were taught not to talk about money and to keep money matters private. Well let's be clear, talking about the ways money works and the systems by which money can and should move is very different from telling all of your financial business. You can learn from and with people without revealing your personal financial affairs.

By equipping your family with the knowledge and skills needed to navigate the intricacies of personal finance, you can empower your children to make sound financial decisions and set everyone up for long-term success. So, what does this actually look like in real life? Well, it is much simpler than you may think. It may involve teaching basic money management concepts, such as budgeting and saving. As well as exploring more advanced topics like investing and retirement planning. By fostering an environment of open communication and learning, you can create a culture of financial empowerment that extends across generations.

Real talk though, I can hear some of y'all right now beginning with the excuses in your own head "What if I don't know what to teach?" "What if I don't know this stuff myself and am struggling to figure it out?" "What if they don't listen to me?"

As you embark on this transformative journey of financial empowerment within your families, know that we are creating a resources to help. Let’s

• LEARN by embracing the principles of financial leadership with unwavering dedication and steadfast determination
• PLAN by recognizing that our actions today shape the trajectory of our future, not only for ourselves but for generations to come.
• PROTECT by weaving a tapestry of financial security, resilience, and prosperity—a legacy that transcends time and leaves an indelible mark on our families and communities.
• GROW TOGETHER by standing united in our pursuit of financial well-being, empowering each other to thrive and flourish in every aspect of our lives.

With each decision, each investment, and each lesson shared, we pave the way for a brighter, more prosperous future, where financial freedom is not just a dream but a tangible reality for all. In our unity lies the power to create lasting change and build a legacy worthy of our aspirations and efforts.

Setting Goals

Setting goals in personal finance helps us understand concepts like budgeting, saving, investing, and debt management by putting them into action. We all must continually develop our financial literacy by learning about various financial instruments, investment strategies, and economic trends.

There are 5 areas that we need to create SMART financial goals:

• Earning - money coming in or revenue
• Spending/Budget - money going out or expenses
• Saving - money set aside for various purposes
• Investing - money placed in multiplier spaces
• Debt & Credit Management - monies owed and financial risk.

Maintaining a Budget

Maintaining a budget is essential for personal finance management. I can vividly recall back in the day having to balance the checkbook by calling and logging which checks had cleared so we knew how much money we had left that month. Y’all remember that?

We still have to do this and this skill needs to be taught to our young people, even if the mechanisms for doing the work are now being done electronically. Teaching ourselves and our young people how to:

• track income and expenses to ensure financial stability and goals achievement.
• budget for needs
• saving for wants and emergencies,
• investing for the future, and
• borrow smart to develop credit

helps us all strategically use money to our benefit. Through sharing our own learning, experiences and financial journey we can empower ourselves and future generations to make informed financial decisions for greater stability and success.

Planning for the Future

Planning for the future is where we spend time considering long term financial stability and legacy planning. If we have done this money thing right we will put ourselves in a position to bless those who are coming after us with a level of financial security. At minimum we do not want our passage to being an ancestor to bring financial burden. As such taking the time to ensure you have the following in order is much more feasible than you may think. The basics everyone needs are:

• Burial insurance for final rest and celebration costs
• Life insurance to support any outstanding debts and to leave a gift to others should you choose
• Last Will and Testament to ensure your final wishes are documented.

This area of personal finance is oftentimes a struggle especially if we are still coming to terms with our own mortality. Since it involves several types of instruments, investment strategies, and knowledge economic trends to make informed decisions we highly recommend seeking the support of a financial expert in these areas.

Enjoying the present

Enjoying the present while managing personal finances involves striking a balance between living in the moment and planning for the future. We all want to be the responsible adults we dreamed of becoming...well most of the time! We also want to have fun and enjoy the life that we are currently living.

Planning for couples vacations and retreats, family vacations, entertainment expenses, additions to the family, celebrating achievements and milestones and of course the impromptu concert or spa day can all be done when we have open communication, clear goals and have set aside funds to enjoy life.

So, don’t forget to include the fun stuff of life in your budgeting and be sure to include things that you like to do personally, couples fun and family down time as they are all needed and can easily get overlooked. Let’s enjoy doing life better together!