Financial Literacy: A Journey Not A Destination
By Binney Wietlisbach, President

Thinking about our theme for the October 6, 2020 Haverford Speaker Series for Women event – how growing up together is like the stock market, rife with highs, lows and a long-term commitment – I couldn’t help but reflect on my journey as a daughter and as a parent.

It’s the experiences we have and the lessons we learn from our families that shape who we are. As a mother of two young adults, I know that shaping is never complete!

In celebration of our program and inspired by my parents, here are a few lessons that I’ve learned, and I have used to guide my children. I hope these may find a spot in your lives well.

1. ON EARNING: MONEY MEANS MORE WHEN YOU’RE EARNING IT
   Growing up, if I wanted something, I had to pay for it. From walking dogs, to watering neighbors’ plants to selling Christmas cards door to door to babysitting, I had a million odd jobs. Those jobs gave me spending money for a clothes, trips, and sundry items, but more importantly, they taught me responsibility. It also made me feel good about myself and it gave me independence.When my children were teenagers, I wanted them to have a similar shared experience. They both worked. I’ll always remember my son as a junior in high school making $7.50 an hour at a golf course learning the value of a dollar (and tax-free tips). Working as clerk at a local store gave my daughter adult responsibility (well before she was an adult) – and she loved it. I could see that both children benefitted greatly by working early on as I did.
2. ON RESPONSIBILITY: ALWAYS PAY WHAT YOU OWE
   Teaching children fiscal responsibility isn’t always easy, but it’s a critical life skill. My son learned this lesson the hard way. When he got his driver’s license at 16, we allowed him to drive our old, beat up car with the understanding that he was responsible for paying for gas, part of the car insurance and any repairs for damage he caused.
   Within 6 months, he hit a parked car not more than three houses away from ours, causing $4,500 in damage. For the next year, we “garnished” his wages from the golf course into a separate account until the costs of the repairs were repaid. During this time, he “lived” off his cash tips. It wasn’t fun for him to “work for nothing,” but he learned to be financially accountable for his actions.
3. ON SAVING: MONEY YOU DON’T SEE IS MONEY YOU DON’T MISS
   From the moment they could, I made sure my children participated in a 401(k) plan and fully invested it in stocks. Saving and investing at a young age is the best advice for anyone! My goal for my children has always been for them to save a minimum of 10% of what they earn – and to always live within their means. Growing and accumulating savings is crucial for retirement, a big purchase and a rainy day.
4. ON LEARNING: THE FINANCIAL LITERACY JOURNEY NEVER STOPS
   There is no replacement for asking questions when you’re confused or need more clarification. The only “dumb question” is the one not asked. I’ve encouraged my children (actually, everyone) to speak up. Though, I will admit, my daughter rolls her eyes when I talk finances with her for too long at any one time!

AND FINALLY, THE “GOLDEN RULE”
Despite my father running a successful business, the expense of raising five children ran deep. He was committed to sending me and my siblings to private school and borrowed money from the bank to do so. Owing a lot of money took a toll on him. From him I learned the golden rule- “he who has the gold, rules.” Meaning, if you borrow money from someone (a person, a bank, etc.), they make up the rules. If you have your own money, you don’t need to answer to anyone about your finances. It’s the most excellent guide I hope I’ve taught my children.