Industry: Law
Age: 26
Location: San Francisco
Salary: $56,160
Net value: $326,552 (529: $211,359; Roth IRA: $5,114; portfolio: $82,235; HYSA: $3,272; checking: $23,272; HSA: $1,300. The funds in my 529 are what was left at a private university that invested four years—a risky portfolio that continues to growing while I decide if I’d like to pursue graduate school.If I don’t, I’ll be over the legal limit on my Roth IRA, about $30,000 I believe, and either choose to withdraw the remaining funds entirely, which means I pay taxes and penalty, or I leave the money there and possibly earmark it for my kids or a family member. I can’t stress enough how incredible 529s are for saving for college! Also, a note about investing: The portfolio mine is mostly in stocks, but I’ve also directed some of it into mutual funds and ETFs to diversify, I try not to get involved too much and just let the stock market do its thing. Most of my contributions come from checks from my grandmother — see below — but I’ll also contribute sporadically, especially if I get a bonus or birthday check. I also committed the cardinal sin of putting money into my Roth IRA but not investing it, so unfortunately it sat stagnant for five years. I’ve since fixed that and have the money in a few S&P 500/large-cap growth ETFs with low fees that have had great historical returns. I plan to maximize my contribution in this coming year. )
Debt: $0
Salary amount (2x/month): $1,711
Pronouns: She/her
Monthly expenses
Rent: $1,450 rent (I share a three bedroom place with two roommates.)
Utilities and Internet: $85
Health & Dental Insurance: $0 (covered by my employer)
Hulu: $10 (Netflix is on a family account and we use my roommate’s HBO and Apple TV+ accounts.)
Spotify: $10
ClassPass: $89 (partially reimbursed by my company with a $300 annual wellness stipend)
HSAs: $23 (I mostly use my HSA for the occasional co-pay or to order contact lenses.)
Was there an expectation to attend higher education? Did you participate in any form of higher education? If so, how did you pay for it?
Yes, 100%. I have always been an excellent student and attended a public high school and a high school for gifted and talented students. I pushed myself to take rigorous courses, including several APs, and participated in a variety of extracurriculars. Both of my parents have degrees and work in high-level jobs, so college was always a given—the question was whether or not I could get into an Ivy League school. My public high school is a large feeder school for the Ivies and other top colleges, so there was a lot of peer pressure as well. Paying for college was never a concern because my grandparents set up 529 accounts for all the grandkids to cover higher education expenses. All four years of my private university were covered, including housing and meals. I’ve always been thankful that I didn’t have to worry about the cost of college, but now, realizing what a blessing it is to graduate with no student loans, I’m 10 times more thankful for my grandparents’ generosity and foresight. I tell all my friends who may have kids soon or are going to be aunts and uncles about how tax efficient 529 accounts are if you fund them early.
Growing up, what kind of money conversations did you have? Did your parents/guardians educate you about finances?
I had some conversations about money as a kid. My parents gave us modest allowances to walk the dog, tidy our rooms, do the dishes, etc., and I often had less pocket money than my friends. My mom would take us shopping for new clothes and shoes at the beginning of the school year, but otherwise, if I really wanted something, I was told to put it on a Christmas or birthday list. My first iPhone was a hand-me-down from my dad and I didn’t get a new one until several years later as part of an upgrade to our phone plan. I was generally told not to spend more than I earned and to keep some for savings and investment. My parents encouraged me to take the money I received as bat mitzvah gifts and invest it. My grandfather was a stockbroker and the $10,000 of bat money he invested for me has grown into a pretty respectable nest egg over the past 13 years.
What was your first job and why did you get it?
I never worked in high school because my parents made it clear that I had to prioritize grades and extracurriculars for college applications. I got my first paying job in college. It was the summer after my freshman year, and I had finished an (unpaid) internship and still had six weeks before school started. A boutique near our house needed a salesperson, so I went for it. It was a way to make pocket money for the school year and pass the time before returning to campus.
Were you worried about money growing up?
I never worried about money growing up. I was vaguely money-conscious as I kept my Christmas and birthday lists of whatever vaguely made sense (American Doll outfits when I was younger, new perfume or sneakers in high school) and slightly jealous of friends who always had the latest iPhone or whose parents took them on a big shopping spree at Sephora. Looking back, though, I see that my parents valued travel and experiences above all else, and they spoiled me with some really cool family trips, including skiing every winter and educational trips to Rome, Morocco, and Switzerland in the summers. I was always involved in a lot of after school activities like ballet, horseback riding, and piano, and we lived in a nice house in Brooklyn. It wasn’t until I got to college that I fully appreciated the extent to which this was special and unusual compared to my classmates.
Are you worried about money now?
Yes and no. My salary is definitely low for my qualifications, and I don’t have the “fucking” money that my friends in banking or consulting have to go on lots of trips and great restaurants. I know that in the grand scheme of things, I have a lot of money to my name that I could access if needed. My expenses are covered and I am happy with my lifestyle right now. But I know, of course, that a lot of it – occasional nice dinners, a few international trips and concerts – is currently subsidized by my family or friend. I’m looking to move into a different role internally at my company and negotiate a significant salary increase to achieve this in 2024. Part of it comes from wanting to be able to fund these experiences for myself and my friends.
At what age did you become financially responsible for yourself and have a financial safety net?
I became mostly financially responsible for myself when I moved into my own apartment at 24. Right before COVID-19, I moved in with my grandmother to keep her company after my grandfather died and stayed for much of the pandemic to care for her. watch and save money. The only things I don’t pay for myself are Netflix and my phone bill (my family lives all over the world, so it’s easier to be on an international family plan). My dad lives in Europe so he covers the plane tickets when I visit for Christmas because they are expensive from the West Coast. He often uses airline points to pay for them. I definitely have a safety net. My grandmother lives in San Francisco and if I ever had a problem with housing or something, I could stay with her. I also know that in a real pinch I could ask her or my dad for money. It never came to that, but I know they would support me without a doubt in a real emergency.
Do you have or have you ever received passive or inherited income? If so, please explain.
At her request, I have been very involved in my grandmother’s estate planning. He was explaining the trusts he has set up for my dad and uncle and how he would like the assets to be divided. She grew up during World War II in Germany with a single mother, so it’s important to her that everyone is taken care of after she dies. He has begun paying me a “steward fee” of $15,000 a year, the legal gift limit, provided that at least half of it is invested. I also know that she has set aside some money for each of the grandchildren in her will. They are probably around $250,000 each. He wants to give us the ability to make something of our own but not so much that we never work again. Fortunately, my grandmother is very active and healthy, so hopefully this money will be a long time coming. I certainly don’t make decisions about my life in the short term based on the expectation of an inheritance. It will be invested immediately and then possibly paid into an eventual down payment on a house, as I obviously like living in big cities with expensive housing markets.
