That’s the big concern on the mind of this week’s guest, Viola (not her real name), a 39-year-old woman who recently was able to purchase a home in the Atlanta suburbs, thanks to a life insurance policy her mother had taken out before her death. Viola is hoping to make sure that she is able to give the family home to her son down the line. “I’m probably a little too hard on myself trying to leave that legacy for him,” Viola says. “And I’m just very happy that I was able to give this gift because it’s not only a gift to me from my parents; it’s a gift from me to my son.” Her efforts to secure this for her son have led her to critique her financial choices, and look for more ways to optimize her spending for her son’s future. But this week’s expert, Kiersten Saunders of richandregular.com, says that she shouldn’t be so hard on herself about her financial decisions. “It’s not about figuring out how to make this money live on,” Saunders says. “That money is meant to be a steward to your healing. And it sounds like you’re doing the right thing. It’s OK to just stop it right there.” Saunders suggests looking at your spending holistically, at both what it provides for you and for your children in the future, and in what lessons you teach your child with how you choose to prioritize your spending. “I think one of the things that helps me when I’m at a decision crossroads, especially when it comes to my child, is to ask myself, what do I hope my child learns from seeing me do this thing?” she says. “Let’s say I’ve got $9,000, and I can decide to upgrade the bathrooms or I can decide to maximize some tax advantaged accounts. The question that I ask myself is, what do I hope my child learns as he’s watching me do these things? And in one of those answers, I typically get clarity.” Saunders also recommends looking beyond just the single asset. “I just wouldn’t put all of my eggs in that one particular asset class and basket as, like, the thing that is going to guarantee generational wealth for your child,” she says. “There’s a lot of different means and mechanisms for you to pass on wealth in this century.” Read the full transcript.
