Money is one of the most important aspects of one’s life, and the money decisions everyone makes, whether right or wrong, have a significant impact in the long run.
These days, a lot of youngsters have fantasies about money based on the things that they see and read on social media, and there is increased pressure to do what others are doing and attain the kind of success they have, which is often measured by physical acquisitions or possessions that often flow.
Celebrities and entertainers are usually touted as role models, which may not necessarily be true, and people literally emulate what they do as their lives are seen as a parameter for success.
Whether we acknowledge it or not, everyone has a role model that indirectly or directly affects their financial lives.
According to financial sector experts, between the ages of 5 and 7, a person’s spending and saving habits are formed. This tells us that financial values are often formed in childhood, and there is no better time to start pointing children in the right financial direction.
In addition, according to a poll by Women & Co., 85% of women in their late 40s think they would have better financial outcomes in life and be more knowledgeable about investing if they had stronger financial role models as children.
A financial role model is someone who can motivate you to make wise financial decisions and offer advice on how to handle your money well.
There are different levels of financial role modelling, and it starts with a person’s parents, then peers, educational institutions, and finally, society.
Financially illiterate parents frequently fail to instil clear financial values in their children. Children who haven’t learned the right values about money will succumb to what their peers are doing and ultimately to what society projects.
In a world where celebrities flaunt their wealth as a measure of success, young people and everyone will benefit from having financial role models whose results can be tracked and whose lives are worthy of imitation.
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A couple of stats from brookings.edu and self.inc show some interesting stats, and I will be paraphrasing some of them below.
—Older people (aged 45–64) are the wealthiest cohort in the world.
—Baby boomers (those born before Gen X) are collectively 10 times wealthier than millennials.
—Millennials are 24% behind Generation X (born 1964–1980) in terms of wealth accumulated.
—The second-biggest spenders are Millennials.
—Gen Z has more clout and swagger in consumer behaviour, and they are among the biggest spenders.
What this means is that in spite of the projection of millennials in society and the younger generation as being smarter because of technology leverage and flaunting of their possessions, the older generation is building wealth much more than what the younger people are doing, and hence we need to continue to look up to them to learn how they are achieving such results.
The list of the richest people in the world is characterised by those with grey hair, corroborating the fact that there is something about creating and retaining wealth that the older generation understands.
Everyone, at whatever age, can continue to learn about money and how to make wise financial decisions from financial role models, as these role models can have a significant influence in motivating people on how to manage financial risk, build wealth, invest, and save for retirement.
Everyone at any level can learn and absorb financial lessons by having a realistic financial role model.
Children need financial role models at a young age.
Young adults need role models to navigate the working season of their lives.
Middle-aged people need role models to help measure their journey and remain on track to building wealth and succession planning.
Older adults need role models as they approach retirement.
Retirees also need role models and teachers to navigate the retirement season of their lives.
Why do you need a role model?
-You may find, discuss, and take advantage of the financial decisions that could significantly enhance your financial life by interacting with your financial role model, where applicable.
-You will make wiser financial decisions by listening to the advice of a financial role model.
-A role model has verifiable results to show.
-A role model has probably made financial blunders that you should avoid.
-A role model has most likely experienced everything, and their knowledge can accelerate your learning curve.
How do you find a financial role model?
You may seek out personal finance coaches who have a proven track record of accomplishment and a reputation for providing sensible financial guidance.
There will always be financially astute friends, relatives, or coworkers around you.
You may join a community or group that offers financial support, such as an investment club, where you can gain knowledge from people who have expertise in managing their finances.
Having a conversation with a financial planner or advisor who can offer you individualised counsel and direction on how to achieve your financial goals is also an option.
Other things to note:
-A role model may not necessarily be in close proximity. It is possible to have a role model you follow closely from afar.
-Have a clear vision of the kind of future you want with regards to your finances.
-Read about people who have astute financial and business sense and continue to follow them closely.
-Read their autobiographies and follow them closely.
– Ask questions where and when necessary
-Ditch the shiny object syndrome and FOMO( Fear of Missing Out) and stay committed to building for the future.
