Award winner: Women who are changing the wealth advice landscape

Wealth advice is often painful, like hearing a lot of bad news. It’s a constant reminder that your financial problems might be serious and you need to act now. And even if we get…

Award winner: Women who are changing the wealth advice landscape

Wealth advice is often painful, like hearing a lot of bad news. It’s a constant reminder that your financial problems might be serious and you need to act now.

And even if we get through that first blow, we can still end up feeling betrayed by those who have gone before us. It can cause us to shun them, hurt others, and, as a result, distance ourselves from younger generations.

But as millennials have been, by some measures, out of the financial game and counting on their parents to help them out, maybe they need to step up, too.

That was the insight of four women who are leaders in their own right. Together, they founded Squarebill, a company that helps millennials build a financial nest egg, and they agreed to share some of their hard-won money tips to help all of us.

Here are five things they’d like to tell their generation.

Don’t be angry when your parents are paying off their debt

That’s not to say that millennials shouldn’t be grateful for the upbringing they were given. One of the first lessons you learn when you are a kid is that the older generation learned financial hard-earned lessons and are setting a good example, not a bad one. Still, it’s OK to not just take good from it.

“We should not be fearful of the struggles of others. Much of it comes from lack of experience and expectations that cannot be met,” says Annie Posmak, Squarebill’s founder.

It’s no surprise then that Posmak is a fan of helping millennials take steps that their parents skipped. “I’ve seen the impact of knowing what does not work and trying something else in a space that made sense to me. Especially where you’re trying to make financial health the priority.”

The Day of Giving Award is supporting innovative ways to do better for society and find joy in the act of giving.

“It might sound greedy or selfish for children to covet wealth, but this needs to be a mind-set, and we can all learn to be open to it. We shouldn’t compare ourselves to those around us and our parents if we have the opportunity,” says Kiersten Allison, Squarebill’s co-founder.

Do your best to take responsibility

Taking the basic steps to manage money is important, but if you want to build your fortune, it doesn’t stop there.

“Millennials can better protect the future through their way of life,” says Laura Cappaert, Squarebill’s co-founder.

We often tend to assume that finances will work out as we are planning for them and we should let them ride and be thankful for the time we have. But that’s not always the case.

“We can either forget our savings or still not see how important they are, so start now to plan for the future,” says Pinto.

In addition to saving for their future, the women say millennials should learn how to manage debts. They should also get comfortable dealing with finances and their own debts in good and bad times.

“You need to be good at what you do and you have to have patience, perseverance, and know when to give yourself a break,” says Posmak.

Align savings and spending to a sustainable level

Saving is a great way to build wealth. Saving is also one of the most difficult parts of building wealth, because you often have little control over what you will buy.

But millennials can find ways to do better and have less stress about the decisions they make. One of the ways they do this is by building some “shadow” savings – that’s the amount that isn’t tied to consumption.

“Research by Mint.com showed that adults with the most money in savings take the longest to recover from any kind of personal financial setback – more than three times longer than adults without any savings,” says Allison.

Establishing your “shadow” savings is about building mental space and becoming financially safe, says Posmak.

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