Financial Planning Myths: Part I – “I’m the only one…”

Article by - The LSG Team
Artwork by Daisy Lopez, Staff Accountant

Finances can be an isolating subject for many. If you’re anything like me, it was a completely taboo subject in my household growing up. From the basics of saving money to the complexities of credit scores and loans, I was ushered into adulthood armed with nothing more than a pat on the back and Google in my pocket (I know many of you were not even that lucky). Then I went off to college and graduate school, gaining all kinds of new understanding and confidence in my abilities to learn and grow. But not in this particular arena.

What I have learned from my teammates at LSG is a secret that is a surprising and unfortunate reality. I’d like to share this secret with you now. You see, the truth is…my story is not unusual. In fact, it is true for a large majority of Americans.

Very few of us were ever taught about money, financial decision-making or investing, not in school, not in college, and certainly not by our parents. And because of its taboo nature, folks don’t talk and learn about that truth with friends or share their lack of understanding with their closest confidantes. They assume that they are the only person on earth who has no idea what they’re doing when it comes to personal finances.

This isolation gives birth to a malicious kind of shame that transports us back to our school days, sitting in a classroom convinced we are the only one with the “stupid” question and hell bent on not speaking out for fear of being exposed. You probably remember the wave of relief you felt when some brave soul raised her hand and voiced the question you were too fearful to ask. The reality is, every other student in this class we call adulthood is thinking the same thing and probably has the same questions you do.

Doctors, teachers, lawyers, plumbers, artists, scientists, politicians, social workers, realtors… the list goes on and on. A person’s intelligence, profession or field of expertise does not necessarily indicate that they understand the basics of personal finance. A brilliant scientist who has spent years studying the nuances of the human genome may well have little to no knowledge regarding investing, the basics of retirement planning, or the intricacies of how her 401(k) plan works. Even your CPA may be a wiz at all things tax-related but have no confidence in his own long term financial plan – if he has one at all. By the time we settle into our careers it can often feel too late to ask the simplest of questions, leading to even more anxiety and shame.

That is where we come in. We are here to be a trusted partner and a non-judgmental resource to help you gain comfort and confidence with whatever hidden questions are giving you anxiety and fear. We have all been there. We know what it feels like. We also know what it feels like when the fog lifts and the sun shines though. There are no stupid questions. Please ask.

Over the next few months, we will be addressing some common myths and misunderstandings concerning finances and financial planning. We hope you will follow along.

Shelby Holt
Client Services Specialist