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Carrie Schwab-Pomerantz is a leader in financial literacy. A seasoned financial planner, she is Senior Vice President of Charles Schwab & Co., the company her father founded in 1971. Schwab-Pomerantz advised two White House administrations and is the author of several books on the subject. personal finances.
Schwab-Pomerantz recently spoke to the Associated Press about financial literacy, gender parity and the importance of having a financial plan. The interview has been modified for clarity and length.
Q: Financial literacy has been part of your life. What made you so pbadionate?
A: I have been working for Schwab since I was 16 years old. At the time, the company was a startup. (My father) built the company on the democratization of investment and creating greater accessibility for ordinary Americans. They say that apples do not fall far from the tree, so I guess my whole career has been devoted to democratizing investment and making it more accessible to those who are not well served by our industry.
Growing up, my father – before Schwab – was a troubled businessman. He had several projects that did not succeed. And when I was young, my parents divorced. My mother was Stanford Phi Beta Kappa – my parents met at Stanford – but she was definitely a woman of the time. And with my father struggling and getting divorced, I think that had impressed me with the financial empowerment of women. Women really need to be involved in their finances and independently.
I had the chance to learn very early to invest and save and see the benefits.
Q: You mentioned underserved populations. Are there groups that should take better action with their money or lack information?
A: I've been working on it for over 30 years and with my colleagues, I've created financial literacy programs for women, inner-city children and poor workers over 50 – Americans ordinary. And I speak to our customers, from the rich to the poor.
What I concluded is that the lack of financial literacy affects Americans from all walks of life. He is blind to economic status, bad and age.
Our latest study found positive news: women's attitudes and aspirations are in the right place. Unfortunately, cultural habits and society still prevent women from having economic parity, which is discouraging.
Q: How can this change?
A: I think it's something for which we all have to come together. (Financial Education) can be integrated into school curricula. And in the public sector, the government has a platform of intimidation. And non-profit organizations – we have a partnership with the Boys and Girls Club. I think that together we can all start making the change.
In the end, many of these problems start at home – how do you talk about money. The gender gap begins at an early age, so we have to talk to girls the same way as sons. In addition, it is about creating a culture in which it is our personal responsibility to participate in our finances.
Q: What is the biggest hurdle for those who want to take control of their money?
A: It's about preparing a plan to get there. This intentional act of focusing on your finances can make such a difference.
It is also a question of stupidity: you must know what you are spending your money on, where you are spending it and where you can cut it. You just have to be a little more disciplined sometimes. If you have ambitious goals, you are more likely to be motivated.
I think people think it's more scary than it really is.
Q: I understand even if you get professional financial advice?
A: I recently revealed it. I always did it myself and it was not until 40 years old that I had recourse to outside help.
I flew all over the country. I had three children, a husband and a great ride. I could not do everything myself. I entered a Schwab program and we met quarterly and did the work. By using a counselor, I felt a bit like a personal trainer. This creates more responsibility. I meet them regularly and I learn from this person and I get better results.
Q: What do you suggest to start education with children?
A: I started early and I had a small system. When my children were young – about 5 years old – I gave them an allowance, not a lot. And this was the beginning of their experience of money and the valuation of it.
I remember my middle child who was asking for Pokémon cards and I was tempted to buy them and move on to something else. But I said, "You have an allowance, why do not you get it for yourself?" He pondered and thought and said, "I think I'll go through." He decided that his money was more precious than mine. It is important to learn the value of money early and choose.
When it came to investing, I had them come to the Schwab office and fill in documents. I could have done it for them, but I wanted them to have the experience of working with a financial institution. This can be intimidating for many people. And when the kids found a job, I opened a depository, Roth IRA, where they started to save.
Q: Anything else we should know?
A: Learning finance is not a one-time affair, it's a permanent quest. Life changes and so your goals change.
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