Days like Father’s Day, where we take the time to honor those who have had a significant impact on our lives, can lead us to reflect on our own parenting and the legacy (both financial and otherwise) we are leaving for our children and future generations. As I examine my personal upbringing and the financial values I live out, I wanted to share some valuable tips with you that can help you take care of your family and set a strong financial example.

Be an Equal and Honest Partner with Your Spouse

Couples tend to struggle when it comes to discussing money and finances. Most avoid the topic, as an American Express survey found, while others lie to their partners about money. While you may know that you need to chat about budgeting and debt and spending, as a recent MONEY survey found, the actual process of doing so can be less than enjoyable.

Take the time to sit down and not only transparently analyze your finances together, but also be honest about what struggles you are having with financial mindsets. If you are both on the same page, you will start to see your finances thrive even more.

Consider Your Mortality

This isn’t exactly an enjoyable topic to dwell on, but if you have a child and a spouse who depend on your income to support their lives, you need life and disability insurance. The primary concern for a lot of parents can revolve around which type of insurance to get and for how long, not to mention confronting your inevitable demise. You are most likely to find low-cost options through your employer, but you may be restricted in the amount you can insure.

Make sure you know your options and sit down with your financial advisor to find out what is available to you and what is best for your unique situation.

You’ll Spend More Than You Think

There’s a strange cognitive dissonance that new parents must embrace. The decision to bring a child into the world tends to be uninformed by finances. The question, “are we ready to care for children,” is more one of values and love than a cold calculation of what you can afford.

We didn’t estimate the weekly cost of child care, how long someone would take off for maternity leave, how much of that was paid, and how we’d afford rent and food without two paychecks. We didn’t look into how a newborn would inflate our insurance premiums, which of our policies should cover the tyke, or how much a delivery would set us back.

And we were completely ignorant of the price tag on all the day-to-day items, from strollers and cribs to diapers and wipes, that a child would need. We both had jobs and assumed we’d figure it out. Bringing a child into the world is an intimately financial decision, especially since our society does so little to alleviate the pocketbooks of new parents (whether it’s paid leave, child or health care.) We’ll likely spend a quarter-million dollars on our son before he hits college, which could easily cost another quarter-million dollars.

There are a lot of factors that go into parenting, but money is a big one. Take a look at where you’re at and find ways to make more, save more, or plan better, so that you can provide for your children the way you dream of doing.

Set a Good Example

No one can argue the significance of a Father’s influence, whether good or bad. Fathers have an incredibly unique and challenging role of setting an example, passing wisdom on to future generations, and leading their children through life.

On the occasion of Father’s Day, I want to thank my Dad for instilling many financial values and habits into me at a young age, habits that will continue to shape the decisions I make for years to come.

Live Within Your Means

On my ninth birthday, my father started the process of teaching me how to live within my means. It may sound funny, but he sat me down and explained the idea of an allowance. He said was going to provide me with a weekly stipend that I would later come to realize was my means. I was going to have a set amount of money that I could spend on anything I’d like. The only catch was that once I spent it all, I couldn’t buy anything else until the following Friday when I received my next allowance. At the age of 9, I began to learn how to budget, how to save, and how to spend wisely.

Plan For the Future

At 15, my father took me to our local bank branch to open my first savings account. We sat down at the desk with the bank manager, and I shared that I had saved $1370, and I needed a place to keep it safe. As I was entering high school and about to turn 16, I was pursuing the goals of a driver’s license and a car. If I was going to make both of these goals a reality, I was going to need a plan.

Dad and I worked out a plan to help me save the money I earned from a part-time job at Sport Chalet. It took me a bit longer to save up for my first car than I anticipated, but planning and saving to reach a future goal is a valuable life lesson, one I share with my clients every day. And the inspiring feeling of realizing a financial goal is worth the planning and sacrifice to get there.

Start Today

When I was 18, I sat down again with Dad to learn about a Roth IRA, retirement planning and perhaps, most importantly, compound interest. I learned that by starting early and investing, my money could grow. By opening an investment account and investing into my Roth IRA with the possibility to earn compound returns, I could potentially become a millionaire when I was older, a crazy thought for an 18-year-old! We charted out a simple savings plan to invest a portion of each paycheck I earned, a savings and investing program I follow to this day. Ultimately I used $10,000 from that ROTH IRA as a down payment on my first house.

I would never have learned these lessons without my father’s guidance and wisdom, and I am eternally grateful for all he invested in me!

THANKS, DAD!

What life and financial lessons did you learn at a young age? I’d love to hear your story and help you make the most of your finances. Give our office a call at (323) 254-3072 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. .

About Brent

Brent M. Mason is the President of Mason & Associates, Inc.  Brent began his career in 1999 with Putnam Investments, where he was a vice president and served as the marketing manager for Putnam’s Insurance Products Division, specializing in the development and sale of investment vehicles within insurance related products. Brent earned a Bachelor’s Degree in Business Administration from Southern Methodist University, in Dallas, Texas where he focused on marketing and finance. Brent is a licensed California insurance agent and can offer life, health, variable and long-term care insurance products. Currently, he is a member of the Board of Directors at Hillsides, an organization that specializes in meeting the needs of at-risk children in the greater Los Angeles area. Brent lives in Pasadena with his wife Leah and their three beautiful children. He enjoys golf, snow skiing and spending time with family and friends.