Your Financial Well-Being Has Multiple Benefits for Your Kids

Getting your finances under control can bring benefits to many areas of your life.

First of all, being on a budget, having funds set aside for unexpected expenses, and putting away money for retirement means that you can be in a much better position to face life’s financial challenges (which are sure to come).

Second, knowing your finances are on an even keel brings tremendous peace of mind. You can open the mail without anxiety because you know all your bills are adequately covered.

Third, sticking to a budget requires a little discipline in your spending, but rewards you with immense satisfaction—knowing that you control your money and not the other way around.

And now research has identified a fourth benefit to financial health: Your kids’ well-being. When kids are aware that their family is having financial trouble (and older kids can tell), they end up having more problems in other areas of their life.

Recently, psychology professor Jamie Hanson conducted a nine-month study of teenagers in the Pittsburgh area to assess the effects of economic uncertainty in their lives. Unlike most studies in this area, Hanson and his team did not rely on parental reporting, but instead spoke directly with the teens.1

The study found that, “Teens’ views about their families’ economic challenges are connected to their mental health and behavior.” For example, many of the respondents reported that when their families couldn’t afford school supplies or lacked money for other necessities, they were more likely to feel depressed and get in trouble at school.

And the impact can be long-term. For most of us, our relationship with money is defined in our formative years. This is when many of our unquestioned assumptions about our finances are formed. When you show your children the right way to manage money, it helps give them good preparation for when they will be responsible for their own household.

Sadly, many of us had to unlearn the wrong things we learned about money growing up.

Financial instability does not automatically go away when you make more money. According to a survey by Bankrate, among those earning $80,000-$100,000 per year, thirty six percent reported living paycheck to paycheck.2 Conversely, it’s also possible to earn less than average and still be on good financial footing.

If you feel like you could use help getting your finances back on track, talk with your fiduciary Financial advisor. Having an overall plan and sticking to it will not only give you a more secure future tomorrow, but also greater peace of mind today.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/nges-new-research-finds-221939/95hkv7/2439781035/h/E1Vieifg9ZixUAW1n0ERkYCsk96wcayZ6H8lA2Rn2rA
2. http://go.pardot.com/e/91522/check-statistics–demographics/95hkvb/2439781035/h/E1Vieifg9ZixUAW1n0ERkYCsk96wcayZ6H8lA2Rn2rA

Disclosure:
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Fiduciary Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

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