Some individuals in communities of color do not have candid conversations about finances enough. We have all heard the phrase growing up “money doesn’t grow on trees” but rarely did they elaborate and tell you where it actually does grow. People are taught to work hard and make money to “pay bills” and “be responsible” or to “save your money for a rainy day”, but what is missing from the conversation? These are good foundational values but the conversation should not stop here. Teaching the value of a dollar without also teaching the power of a dollar is a limited perspective.
Money is simply transactional to many people. You make money, you pay bills, buy groceries, and maybe go out to eat with what is left. What if more people viewed money less as a transaction and more as a tool. Transactions are simple exchanges of one thing for another, but tools are used to build. Many Americans live pay check to pay check because their view of money is mostly transactional. Many don’t discuss the importance of credit, interest rates or investing. Retirement accounts and educational saving plans are not talked about. Budgets are not talked about.
When money is viewed as a tool the perspective changes. How is your money being used as a tool? Are you having the deeper conversations about money in your family? Do you know how much your spouse makes? Do you have a way visually to see where your money is going? What is your debt-to-income (DTI) ratio? What is your net worth? What percentage of your income is used for fixed expenses vs variable expenses? How is your money being used currently?
Do you know? I think families should have these discussions. Individuals and families alike should know what money comes in and where it goes out every month. Finances is an area where spouses need to be transparent with each other and individuals need to be honest with themselves. This transparency and honesty will lead to more conversations.
This is what we want to encourage our readers to do. We want every one to have a fundamental understanding of how their money is currently being used. We want our readers to have a financial plan. We want our readers to not just have a transactional perspective of money, but also view it as a tool to build the life you want.
Let’s talk about money!
