Industry: Health Care
Age: 29
Location: Palm Springs, CA
Salary: $58,240
Net value: -$254,294 (checking: $1,357, HYSA: $6,929, Roth IRA: $3,367. I live with my partner, but we don’t share finances. We trade groceries and split large joint purchases and meals.)
Debt: $265,947 (in federal student loans)
Salary amount (2x/month): $2,171.29
Pronouns: She/her
Monthly expenses
Rent: $700 (paid to a family member who owns the home but lives in a different state)
Student loans: $0 (My payments were paused after graduation due to COVID-19. For next year, it will be $0 with SAVE).
Internet: $25 (for my half)
Phone: $0 (I’m on my dad’s plan. I’ve offered to switch, but he’s still paying for now.)
Insurance: $0 (My mom gave me her car as a gift when she got a new one and just finished paying off her loan. She’s transferring the title to me and I’ll start paying insurance next month).
Peloton app: $22 (for my half)
Spotify: $10.99
Apple iCloud: $2.99
Amazon Prime: $7.53
Netflix: $6.99
Health Insurance: $0 (Covered California)
Savings & Roth IRAs: ~$350 (What’s left of my expenses for the month, which I meticulously track in a spreadsheet. The average for this year was $250 in my Roth IRA and $100 in my HYSA. Next year, I’ll top up first (My Roth IRA because I have plenty in my emergency savings.)
Annual Expenses
The Living Desert Zoo & Gardens Membership: $75 (my half)
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?
Yeah, it wasn’t really a question. My grandmother had a fund for my higher education and I remember her telling me I could go to any school I wanted. I went to an out of state public school and everything was paid for including tuition, supplies, rent and even a stipend. I worked as a barista for the last two years for extra money. They didn’t expect me to go back to school for an advanced degree, but it felt completely impossible to graduate with a biology degree. I took out federal student loans for medical school and I honestly try not to think about them too much. I’m glad that under the new rules, paying the minimum amount means no more interest is added.
Growing up, what kind of money conversations did you have? Did your parents/guardians educate you about finances?
We didn’t talk about money. When I was a senior in high school, my mom explained to me that her side of the family has a very important trust.
What was your first job and why did you get it?
I got a job at the Sanrio store in the mall a few days a week at age 16 for extra money and because I thought the work experience would look good on future resumes.
Were you worried about money growing up?
Not that I can remember. My mom was a receptionist and my dad worked in sales. My mom started receiving money from the trust when my grandmother passed away while I was away at college and the finances really seemed to change at that point. My mom stopped working and has lived entirely off the trust’s dividends.
Are you worried about money now?
Yes. My student loans are ridiculously large and I don’t really have the motivation or energy right now to accelerate and significantly increase my income, which is possible but very hard work in my profession. I’m comfortable right now because my rent is so low, but I haven’t been able to cut my expenses and save as much as I want. My retirement fund is low due to being in school for so long. My partner is still working to increase his income. I don’t see how we will ever have money for retirement, kids or buying a house. I’ve been logging every expense for the past year and it’s definitely increased my money worries without causing any real change in my spending habits.
At what age did you become financially responsible for yourself and have a financial safety net?
I have never been fully financially responsible. My mom recently gave me her car and still pays the insurance, and my dad pays my phone bill. I try not to feel guilty about these things and practice gratitude. I’ve moved in with both of my parents at various times since graduating undergrad and I know I could move in with either of them if I had to.
Do you have or have you ever received passive or inherited income? If so, please explain.
This year, my mom started giving my sister and I $500 per quarter as a dividend from the trust. I know we will split what my mom is getting right now when she dies, but I’m trying to live my life without expecting that. I don’t really know how these things work. I have no idea how much he gets per quarter and I guess anything can happen because the amount is based on “purchase”? I have already benefited immensely from this trust through gifts, vacations, education and more.
