Industry: Law
Age: 26
Location: San Francisco
Salary: $56,160
Net Worth: $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 over after four years of private university. They remain invested in a moderate-risk portfolio that continues to grow while I decide if I would like to pursue grad school. If I don’t, I will roll over the legal limit to my Roth IRA, about $30,000, I believe, and either choose to withdraw the remaining funds fully, which will mean paying taxes and a penalty, or leave the money there and potentially designate it for my children or a family member. I can’t stress enough how unbelievable 529s are for saving for college! Also, a note on my investments: My portfolio is mostly in equities, but I’ve also been directing some of it to mutual funds and ETFs in order to diversify. I try not to meddle too much and just let the stock market do its thing. Most of my contributions come out of checks from my grandmother — see below — but I will also sporadically contribute, especially if I receive a bonus or birthday check. I also made the cardinal sin of putting money in my Roth IRA but not investing it, so, unfortunately, it sat stagnant for five years. I have since fixed that and have the money in a couple of S&P 500/large-cap growth ETFs with low fees that have had excellent historical returns. I plan on maxing out my contributions to it next year. )
Debt: $0
Paycheck Amount (2x/month): $1,711
Pronouns: She/her
Monthly Expenses
Rent: $1,450 rent (I share a three-bedroom place with two roommates.)
Utilities & 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 yearly wellness stipend of $300)
HSA: $23 (I mostly use my HSA for the occasional co-pay or to order contact lenses.)
Was there an expectation for you to attend higher education? Did you participate in any form of higher education? If yes, how did you pay for it?
Yes, 100%. I was always an excellent student and attended a public middle school and high school for gifted and talented students. I pushed myself to take rigorous classes, including a ton of APs, and was involved in a variety of extracurriculars. Both my parents have graduate degrees and work in high-level white collar 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 big feeder school to Ivies and other top-tier colleges, so there was a lot of pressure from my peers as well. Paying for college was never a concern because my grandparents set up 529 accounts for all the grandchildren to cover higher education costs. All four years of my private university were covered, including housing and meals. I was always thankful for not having to worry about the cost of college, but now, realizing what a blessing it is to graduate without student loans, I’m 10 times more grateful for my grandparents’ generosity and foresight. I tell all my friends who may be having kids soon or are becoming aunts and uncles about how tax-efficient 529 accounts are if you fund them early on.
Growing up, what kind of conversations did you have about money? Did your parent(s)/guardian(s) educate you about finances?
I had some conversations about money as a kid. My parents gave us modest allowances for walking the dog, tidying our rooms, washing the dishes, et cetera, and I often had the least pocket money of my friends. My mom would take us shopping for new clothes and shoes at the start 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 on our phone plan. I was generally told not to spend more than I earned, and to keep some for savings and investing. My parents encouraged me to take the money I received as bat mitzvah presents and invest it. My grandfather used to be a stock broker, and the $10,000 of bat mitzvah money he invested for me has grown to 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 needed to prioritize my grades and extracurriculars for college applications. I got my first paying job in college. It was the summer after first 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 did that. It was a way to make pocket money for the school year and pass the time before heading back to campus.
Did you worry about money growing up?
I never worried about money growing up. I was vaguely conscious about money in that I kept my Christmas and birthday lists to what felt vaguely reasonable (American Girl doll outfits when I was younger, new perfume or sneakers in high school) and was mildly jealous of friends who always had the latest iPhone or whose parents took them on big shopping trips to Sephora. Looking back, though, I see that my parents valued travel and experiences over things, and I was spoiled with some very cool family trips, like skiing every winter and educational trips to Rome, Morocco, and Switzerland during the summers. I always participated in lots 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 that was special and unusual compared to my classmates.
Do you worry about money now?
Yes and no. My salary is definitely on the low side for my qualifications, and I don’t have the “fuck-it” money that my friends in banking or consulting have to go on lots of trips and to fancy restaurants. I know that in the grand scheme of things, I do have a lot of money to my name that I could access if need be. My expenses are covered, and I’m happy with my lifestyle at the moment. But I’m cognizant, of course, that a lot of it — occasional nice dinners, some international travel, and concerts — is currently subsidized by family or my boyfriend. I’m looking to transition to a different role internally at my company and negotiate a substantial salary bump to go with it in 2024. Part of it comes from a desire to be able to fund these experiences for myself and friends.
At what age did you become financially responsible for yourself and do you 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’s death and stayed for much of the pandemic to keep an eye on her 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 one international family plan). My dad lives in Europe, so he covers plane tickets when I visit for Christmas because those are expensive from the West Coast. He often uses airline points to pay for them. I absolutely have a safety net. My grandmother lives in San Francisco, and if I ever had an issue 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 has never come to that, but I know they would support me without question in a real emergency.
Do you or have you ever received passive or inherited income? If yes, please explain.
At her request, I have become very involved in my grandmother’s estate planning. She has been explaining to me the trusts she has set up for my dad and my uncle and how she would like the assets divided up. 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 her death. She has started paying me a “trustee fee” of $15,000 a year, the legal gift limit, with the stipulation that at least half of it be invested. I also know that she has set aside some money for each of the grandchildren in her will. It’s probably about $250,000 each. She wants to give us the ability to build something of our own but not so much that we never work again. Thankfully, my grandmother is very active and healthy, so hopefully that money will be a long time coming. I’m certainly not making any life decisions in the short run based on an expectation of an inheritance. It will be invested right away and then probably put towards an eventual down payment on a home since I apparently love living in big cities with expensive housing markets.
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