Lessons From Episode One
Any parent can relate to the desire to invest in their children’s education — not to mention having enough money to enjoy a comfortable life. In the first episode of Money Matters by Impart Media, two sets of parents talk with advisors Adrianne Yamaki and Jerel Butler about the financial futures they want for their children — and for themselves.
Bruce and Haizel are parents to three teenagers who are about to go to college, and although they realize that financing all of their tuition is impossible, they want to do everything they can to support their children’s futures. Cheyenne and Marco, on the other hand, are parents of two young children — and proud of the fact that they’re completely debt-free. They’ve always dreamed of owning their own home.
We’ll take a closer look at each family’s unique challenges and the advice they receive from Adrianne and Jerel.
Preparing their kids for college
Bruce and Haizel made the reality clear to their three teenage children from early on: they would have to work hard to get into college and help strategize the means to pay for their tuition. Bruce and Haizel had already set up 529 plans for all of their children before they were out of diapers (and these plans will go a long way as prepaid tuition because they’re tax-deductible in their home state of New York!). However, to minimize educational debt, they advised their kids to consider scholarships and lucrative career paths.
Buying their first home
At the beginning of the episode, we learn that Cheyenne and Marco both have savings plans (two Roth IRAs and a 401(k) between them), but they aren’t confident about how much they’ve saved. Marco points out that they’re focused more on investing than saving lately. With their two little ones growing up so fast, they feel it is time to get serious about buying their first home. Jerel offers his rule of thumb: put at least three months’ worth of expenses into a high-yield savings account. According to Jerel, the ideal time for a family to start house hunting is when emergency savings are safely nestled away in the bank.
Making it all happen
The first step to changing our habits is acknowledging them. In this episode, Bruce speaks openly about the shopping habits he developed over the years despite consistently worrying about finances (who doesn’t relate to retail therapy?). Adrianne suggests he limit his shopping to a specific amount each month. That way, he can still enjoy shopping without letting it interfere with their budget.
Meanwhile, Cheyenne and Marco follow Jerel's advice to budget for their investments and start building their emergency fund. They can still benefit from the work they’ve already put into investing while shifting their main focus to purchasing a home.
Creating a new cycle
These families want what anyone would desire for their children: a home to call their own, debt-free education, and the opportunity to build generational wealth. At the beginning of the episode, both families feel stuck in patterns that no longer serve them. Then, they start talking openly about money and receive helpful advice from an advisor. Their transformation is visible: they now feel clear, confident, and empowered about the next steps they need to take to achieve their financial dreams.