It really just comes down to being vulnerable and sharing some of the money lessons you’ve learned along the way.
- Talk about retirement savings. Mentoring is not about telling your mentee how much to invest, or selecting specific investments for her. But you can provide some broad lessons learned from your years of saving to prepare for retirement.
- Review what an employer match is. You might point out that if her employer contributes funds to match some of her retirement contribution, she should ask if there’s a minimum she needs to invest to take advantage of that benefit.
- Have a conversation about key financial terms. Embracing the financial speak and connecting it to your own life experience is invaluable dialogue. Some ideas to start with are dollar-cost averaging and compounding.
- Talk about budgets and debt. Everyone tackles these differently. Having an open discussion about what has and hasn’t worked for you in the past can provide some guideposts for your mentee.
- Discuss the upside of also investing in your passions. Finally, being a money mentor doesn’t mean that you have to be hard-nosed about your counsel. Yes, saving for retirement is vital, but I tell my mentees that it’s ok to set some money aside for life experiences and passions.