• May 2012

What Is the Most Valuable Financial Advice You Learned From Your Parents?

By Rita Cheng, CRPC®, CFP®
CEO, Blue Ocean Global Wealth

My father emigrated from Taiwan in the 1960s with only $17 to his name and the clothes on his back. Even though he was poor in the material and financial sense, he never considered himself poor.

His mantra was that financial wealth alone did not represent one’s “true wealth.” He stressed the fact that he was rich in spirit and blessed with his education.

The most valuable financial advice that my dad instilled in me was not to define myself by what I have, but rather by my accomplishments and education. He insisted that while money did not buy happiness, it did provide peace of mind, freedom, and flexibility.

I learned that money should not be the sole determining factor for the decisions I make in life. His financial wisdom and insight have enabled me to adopt a balanced, holistic approach to financial matters, for which I am eternally grateful.

The Circle of Life

I hope to further my dad’s legacy and instill values of financial stewardship and reverence for one’s elders. Unfortunately, I never had the opportunity to meet any of my grandfathers, as they passed away even before my parents got married.

My three children are fortunate to know my dad, and though he now faces the physical challenges that accompany Parkinson’s Disease, my children treat him—and other individuals with physical limitations—with patience and compassion.

True to my dad’s advice, I don’t define success merely by accomplishing what I desire to achieve.

As parents, we all aspire to bestow our children with the tools, knowledge, and resources to achieve academic success. I also impart the importance of prudent money management and effective time management.

My moment of clarity occurred when my eldest daughter Sarina proudly exclaimed, “Mom, I realize that if I continue to manage my time and money well, as well as believe in my ability to overcome obstacles and challenges on my own, there’s no limit to what I can achieve.”

Financial literacy is the key to economic success.

Keeping that goal in mind, consider these three money-saving strategies to help teach your children how to best manage their money. They are simple and effective, even for children in elementary school.

1. Create a family financial mission statement. Solicit input from your family about what each member thinks is important. Is it eating out, taking vacations, saving for college—or all of these goals? Have an open conversation with your spouse and children to get them thinking about the meaning of money, the challenge of earning it, and importance of saving for what you truly value.

2. Take opportunities in your daily activities to model how you make money decisions. By discussing money making decisions as you shop, cook, and pay bills, you provide concrete examples that your children can model. Plus, taking the kids to the grocery store and cooking dinner afterwards teaches them to apply their math skills in the real world. Having them bag groceries with you at the check-out shows them how much it really costs to fill up the fridge each week.

3. Allow children firsthand experience in earning, saving, and spending their own money. Allowances are great—so long as the kids actually do chores to earn the cash. Be sure to set up a savings account for them early, and let them manage the records so they can see how much money they are saving over the years. By the time they hit their teens, this will be a valuable lesson when it comes to wanting to spend their savings on clothes, food, and friends—and still save for college. Then, by the time they head off to the university of their dreams, they will be more likely to have a savvy sensibility about managing their expenses. Remember, children need to have the benefit of making their own decisions—and learning from their mistakes—so that as adults they are as wise as my dad.

Try using these simple ideas at home with your kids, and let me know how it goes.

And, if you have any good advice on how to help your children become financially literate, do share them with me: mcheng@blueoceanglobalwealth.com.


Marguerita M. Cheng, CFP® is the CEO of Blue Ocean Global Wealth, which provides corporations and institutions with portfolio construction, investment due diligence, and risk-management consulting services. The firm works with families, entrepreneurs, and executives to help them identify and achieve their financial goals. As a CFP Board Ambassador, she helps educate the public, policy makers, and media about the benefits of competent, ethical financial planning.

A Financial Planning Association (FPA) National Board Member and member of the finance committee, Cheng served eight years on the Board of Directors of her alma matter, The Robert H. Smith School of Business at University of Maryland, where she collaborated to increase alumni engagement and developed asset management education programs. She is also the President of the Blue Ocean Economic Empowerment Fund.

Cheng says her greatest joy and passion is touching the lives of others so that they may achieve their “personal financial success.”

For more information, visit www.blueoceanglobalwealth.com.

Securities offered through Private Client Services, LLC. Member FINRA | SIPC. Advisory products and services offered through Blue Ocean Global Wealth, a registered investment advisor. Private Client Services, LLC and Blue Ocean Global Wealth are not affiliated entities.

Blue Ocean Global Wealth intends that this article will be viewed for informational purposes only. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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