We learn how to manage money in very different ways. Some of us are lucky to have excellent role models at home. For example, Dr. Chien watched, learned, and modeled after her parents at a very young age. Her mom gave her allowance to manage her breakfast and lunch throughout her school years. She was part of a savings club where she saved into a simple saving book weekly.  These simple habits shaped Dr. Chien’s financial behaviors.

But not everyone has the access to role models and mostly relies on peers or friends. Well, this will depend on who you hang out with that could totally reshape your financial behaviors.  Join Dr. Chien to interview Mr. Cousineau, and find out how he might guide us in our financial behaviors through powerful stories.

Guest:

Jake Cousineau is a high school teacher and author. After years of teaching personal finance at the high school level and being disappointed with the literature available to young adults, he decided to do something about it. In 2020, he released his book, How to Adult: Personal Finance for the Real World, which helps young adults understand and approach the financial realities of adulthood. Using straightforward explanations, relatable examples, and entertaining personal anecdotes, How to Adult teaches topics ranging from compound interest and budgeting to 401(k)s and mutual funds.

Cousineau stresses the importance of storytelling and humility in personal finance: “Sharing my own missteps in personal finance is incredibly important to me. Too often, people avoid addressing their financial woes because they don’t want to admit their own ignorance or confront their problems. I hope the stories of my own blunders help people feel a bit less insecure about any mistakes they may have made and encourage them to address their issues.”

Host:

Chia-Li Chien, Ph.D., CFP®, PMP®, CPBC, is an Assistant Professor and Director of the Financial Planning Program of California Lutheran University. Before her academic role, she held several senior management positions in Fortune 500 companies, including Diageo, ABB, CIGNA, and RSA Insurance Group. Dr. Chien is a frequent speaker about succession planning at national conferences and has published three books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” She publishes research on succession topics in a variety of academic and practitioner research journals. Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®). Chia-Li Chien is pronounced Jolly Jan.

Dr. Hossein Salehi gains his global perspective in finance from his experience living in Iran, Italy, and the U.S. Dr. Salehi is passionate about teaching and working with students at California Lutheran University, “I like helping people as a whole, that’s why I actually chose financial planning because I really wanted to help people make better financial decisions and teach the younger generations. I really like helping the students pick the right career for the rest of their lives that isn’t just financial but fits their personality,” he said.

Finding His Path to Financial Planning 

Dr. Salehi teaches financial planning courses both to undergraduate and graduate students. His biggest inspiration to find his passion for financial planning came from his father when he lived in Iran with his family.  

As an undergraduate, he followed the footsteps of his father and earned a degree in computer engineering in Iran. After university, he worked as a program developer for different computer applications in finance and accounting much like a software developer for games, he explained. However, after seven years in the industry, he decided it was time to change his career to finance which is more interested in.  He earned his master’s in finance in Iran before deciding to move across the world to dive deeper into his education. As he is most interested in financial markets and investing, Dr. Salehi decided to move to the United States. “My father helped me a lot with the concept of studying abroad at an American university,” he said.

While waiting for his American university admission, Salehi attended university in Italy to study. His decision to move to Europe was fueled by wanting to learn more about financial markets. In Iran, the financial diversity and market are limited, he explained, “I knew that I needed to go somewhere else like Europe.” He spent around nine months in Italy to learn more about theories and financial models. It was also during this time he began teaching and found a passion for it.

In 2011, Salehi moved to the U.S. to study a Ph.D. in Economics as “economics is the base and the foundation of finance,” he said. After finding interest in microeconomics and finances in households, Salehi realized that he enjoyed financial planning the most. Nearly finished with his Ph.D. in Economics, Salehi said it was a hard decision whether he should pursue another Ph.D. in his area of interest in financial planning. After deliberation, he decided to turn his economic Ph.D. into a master’s of economics and pursue a financial planning Ph.D. instead at Texas Tech University, which is one of the top financial planning programs in the country. “I had to start from the beginning and start learning from scratch as the laws are totally different from other countries. It was worth it because I’m a certified financial planner now,” he said.

The Role of Being a Professor

Over the years, Dr. Salehi has had multiple teachers and mentors to help guide him where he is today. Now he spends his time teaching and researching at California Lutheran University. His most liked areas of interest in financial planning are investment and retirement planning. Dr. Salehi doesn’t only teach those inside the classroom, but he thinks it is important to help others. “I like to help people understand what’s happening around them and it doesn’t only apply to my students. It could be a friend or a family member that needs help to understand the concept. I like teaching and I like educating people with my knowledge and experience of what I learned over these years from three different education systems, Iran, Italy, and the US,” he said. 

In January 2020, Dr. Salehi took financial planning undergraduate minor student Zach Bullard to attend the National LINC 2020, January 29-31, 2020 at Hytall Regency Orlando, FL. At the conference, students had some training and teaching sessions to learn about the industry. It was an opportunity for financial planning students to meet thousands of advisors and talk to them about internships and jobs. A conference like this gave student Bullard a number of opportunities and he said he was extremely grateful for Dr. Salehi for providing it and going with him. 

Another undergraduate financial planning minor student, Jared Martin, said his favorite part of California Lutheran University is the professors and experience offered. In particular, Dr. Salehi is one of his greatest influences within the financial planning department. 

Qualities of a Good Professor

“Being able to teach in the most understandable and digestible way is the best. If you know a topic or a concept well enough you should be able to teach it in very simple words,” he said. Personally, he enjoys this method for learning and tries to follow the same structure for his students to learn from. Other qualities that he believes are important are being able to balance connecting and understanding with the students but also being firm at the same time. 

Learning from a textbook versus learning from a real-life scenario are two very different concepts. Dr. Salehi believes real-life scenarios help the students understand the different concepts and technologies in class, therefore he likes to incorporate them when teaching. “I really like it because it’s very applicable and students can see what they’re learning and apply their knowledge in real-time by using these applications,” he said. Dr. Salehi believes it helps provide realistic outcomes for the student when they take the theories outside of the classroom and it is his favorite part of teaching.

Qualities of a Good Student

Dr. Salehi believes that students shouldn’t rely just on course material or class notes, but rather be looking and learning from other sources. “As a student, try to learn as much as possible from different resources,” Dr. Salehi said. “This is really important for students in finance because finances are changing every day, you have something new that can happen that can influence the market,” he said. He encourages students to use different resources and know what is reliable versus misinformation. 

Finishing his second year at California Lutheran University has been a challenge as most of his teaching has been online during the pandemic. “Teaching in Zoom is pretty challenging not just because I don’t know how to engage the students but because it has challenges of not being able to see the students and not recording the classes with the student’s faces,” he said. However, Dr. Salehi tries his best by using other types of material and engaging students with videos, and by sharing his screen to look at stocks.

Other Interests Outside of Finance

Before the pandemic, Dr. Salehi enjoyed traveling particularly around Europe and learning about the history of the different countries. He also enjoys being active by cycling and swimming as well as reading non-financial planning books. “One of the reasons I chose California is because it’s a really nice state to go outside and do activities,” he said. He is hoping to start surfing soon. 

About Dr. Hossein Salehi: 

Dr. Hossein Salehi is an assistant professor in Financial Planning at California Lutheran University. He has a doctorate in personal financial planning and is a Certified Financial Planner (CFP®). He also has an M.Sc. in Personal Financial Planning from Texas Tech University, an M.A. in Economics from Texas Tech University, and an M.Sc. in Financial Management from Tehran University.

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press. 

California Lutheran University has a not-for-credit course in Introduction to Personal Finance. The course is designed for working adults to enhance their financial journey. The course provides an overview of the financial journey and necessary tools in earning, tax, credit scores, loans, housing decisions, savings, investment, retirement, and risk management. Our goal is to help participants reduce spending/debt and increase saving/wealth.

CBC Federal Credit Union sponsors this course. Space is limited to 20 faculty or staff of California Lutheran University. If you are interested in a complimentary not-for-profit college course, valued at $955, please register by Nov. 13, 2020.

P.S. Wiley sponsors the textbook.  Envestnet sponsors the financial planning industry’s top software, MoneyGuidePro.

PPS. Upon completion of this course, you have the option to sign-up for one-on-one financial counseling/planning sessions.

CPE-NCR950 Intro to Personal Finance Flyer

Sheena Parrish found her passion for financial counseling when living abroad in Germany with her husband. During her twenties, Parrish and her husband on active duty in the air force lived overseas in many countries. In fact, during a 14 year period, she moved seven times. On the base in Germany, she got a job working in financial counseling and education using only personal experience and her background in human services. Several of her fellow colleagues mentored her and helped guide her through the roles and responsibilities. After some time, Parrish decided she wanted to be certified as an Accredited Financial Counselling (AFC). Fast forward to the present and Parrish now works as the Special Programs Manager at AFCPE (Association for Financial Counselling and Planning Education). 

Path to Counselling and AFC

Parrish’s background of working is in human services. She used to do social work with youth and be an academic advisor at colleges. She describes working with others as her intrinsic talent. Her journey to obtaining her AFC was through self-study. Anyone from any background or experience level can self-study for the AFC and it takes around two years to complete, she said. One of the requirements to earn the AFC is to have experience hours. As Parrish had no previous work experience this was the part that took the longest for her as she needed to accumulate experience. However, if you are a CFP, you can use that certification to fulfill personal financial core competencies. 

Counselor vs Coaching

A counselor earns an AFC/ AFC Canada, explained Parrish. According to Investopedia, an AFC “provides financial advisors with practical training in all aspects of personal finance.” The curriculum focuses more on middle and lower-income issues. A coach earns an FFC from the Financial Fitness Coach Program. For this certification, you need a financial foundation of knowledge, such as the AFC. 

Benefits of Having CFP of Having These Skills with Clients

“Personal finance is called personal for a reason. It is something that people sometimes have challenges talking about. They might have had personal experiences related to money in their past that were pretty unpleasant,” Parrish said. 

AFC focuses on building skills on the human side of finance, understanding that personal finance can be difficult to talk about. It requires soft skills of communication that are not often taught for the CFP.

“AFC is the ability to bring the human side to finance, it’s not just numbers. You’re sitting down with a person and they’re telling you their personal financial information. There may be some underlying factors when talking to them,” Parrish said.

The AFC designation has been around since 1993 so it is well established and known. It was accredited by NCCA which is the same as the CFP, explained Parrish. The website AFCPE.org has a lot of information as well as college courses that are available to participate in for credit. Participants are able to create their own timeline and self-study using these resources that are available just like Parrish did. 

With the position comes continuous growth and learning about personal finance knowledge and working with others, she explained. AFC’s are always self-accessing to reflect and work out how to work better with clients. The key is having good communication and listening skills to effectively understand and help the client or person they are working with, she explained.

AFC Places of Work

There is a range of capacities that an AFC can work in from the government to non-profits as well as assistant programs. “It’s a variety of different job titles in a variety of different fields,” said Parrish. Here are some examples that Parrish listed:

• Military
• Housing Counsellors
• Non-profit organizations
• Banks
• Credit Unions 

How Have CFPs Structured Practice to Improve AFC as Part of Their Service?

When a CFP (Certified Financial Planner) is also an AFC they broaden their reach on who they can serve from those who are low-income to high-income. The CFP and AFC complement each other nicely and work well together. What CFP’s may not realize, Parrish said, is that they are counseling a lot already in their jobs. 

“Any of us could find ourselves in an unexpected place with anything that is going on in the world, like 2008 or 2020. As professionals it’s nice if we can meet clients where they’re at and shift to support them with whatever may be going on,” Parrish said.

Advice for Counselling and Coaching

The webinar ended with parting advice from Parrish to those who are interested in earning the AFC. 

“Follow your heart and do what you want to do. If you have a heart for helping people this could be something to explore and a way for you to combine your already established talent and interest with personal finance or with something else you would be very good at combining the two. Follow your heart. Look for opportunities to grow. Get connected to expand your network. Join AFCPE, it’s all designed for people to become more well-rounded professionals,” she said.

About Sheena Parrish:

Sheena Parrish, AFC® is the Special Programs Manager for the Association for Financial Counseling and Planning Education (AFCPE®). In this role, she manages grant-funded projects and serves as the liaison for AFCPE Registered Education Programs, focusing on increasing engagement with college and university students. Sheena obtained her Accredited Financial Counselor (AFC®) certification while working overseas for the U.S. Air Force as a Department of Defense civilian providing financial counseling and education to members of the Armed Forces. She has a BS in Human Ecology from The Ohio State University and a Master of Human Relations from the University of Oklahoma. Becoming an AFC allowed her to combine her passion for helping professions with her interest in personal finance and financial wellness.

For more information about AFC and AFC registered programs like California Lutheran University. You can contact Ms. Parrish directly at:

Sheena Parrish, AFC®
Special Programs Manager
sparrish@afcpe.org
614-368-1132

About the Host:

Dr. Chia-Li Chien is a succession program director at Value Growth Institute, a succession consulting practice dedicated to helping business owners increase their firms’ equity value. Before her private consulting practice, she held several senior management positions in Fortune 500 companies. Dr. Chien is a director of the financial planning program at the School of Management at California Lutheran University. Dr. Chien is a frequent speaker about succession and retirement planning at national conferences and has published three award-winning books, including her most recent publication, “Enhancing Retirement Success Rates in the United States.” Dr. Chien serves on the boards of various national financial service associations. She holds a doctorate in financial planning and is a Certified Financial Planner (CFP®) as well as Project Management Professional (PMP®).

About the Author:

Rosie Baker is an undergraduate student at California Lutheran University, graduating in May 2021. She is studying Communication with an emphasis in PR and Advertising and has a minor in Creative Writing. In July 2020, she published her first book, Mirrors & Windows: Unlocking a New Framework to Envision Your Success, with New Degree Press.

References:

Cussen, M. (2020, August 28). Accredited Financial Counselor: An Introduction. Retrieved October 29, 2020, from https://www.investopedia.com/articles/financialcareers/11/accredited-financial-counselor.asp

Webinar Description:

Dr. Chien interviewed Sheena Parrish,  Accredited Financial Counselor (AFC®) on “Why CFPs should consider AFC into their business model?” on October 7th, 2020 at 1:00pm PST.

The financial planning/service industry adapts quickly to consumer needs. The traditional commission-based business model (or transaction-based) faced compressed commissions. As a result, many CFPs transitioned into either fee-based or fee-only business model. Yet, many still struggle to figure out how to add new profitable service into the overall revenue that would meet the demand from consumers. In this interview, Dr. Chien will help financial planning practitioners to discover the value of AFC (Accredited Financial Counselor).

• Why should CFP consider having AFC?
• How will AFC increase the financial planning practitioner’s revenue?
• What is the difference between AFC, AFCC, and FFC?

Social security can be complicated and confusing if you have never learnt about it as a college student. Chances are if you haven’t taken a financial planning class either in college or in high school you probably only have a rough understanding on what it is or maybe you have no idea, which is ok, that’s what this article is here to change. As a college student to another college student here is an explanation of what Social Security is and what is important to know now even though we are young and retirement seems decades away. 

Let’s take the scenario that I earn $15 an hour, 10 hours a week. My weekly earning would be $150. Now I have to pay Social Security and Medicare tax called FICA or Federal Insurance Contributions Act which altogether is 7.65% (6.2% for Social Security tax and 1.45% for Medicare tax). For my earning of $150,  that would mean each paycheck I would be paying $11.48 in FICA tax. 

Everyone who is in the workforce contributes to Social Security Trust Fund (SSTF). Those who pay FICA will pay up to a cap of $128,400 for Social Security, but there is no cap on Medicare. Those who receive from the SSTF are the retired, disabled, children or who live in poverty. 

On the official government website for Social Security they explain it as:

“the money you pay in taxes is not held in a personal account for you to use when you get benefits. Today’s workers help pay for current retirees’ and other beneficiaries’ benefits. Any unused money goes to the SSTF to help secure today and tomorrow for you and your family.”

The Social Security card you got when you were little is responsible for this process, it has a 9 digit number on it that is personal to you, and only you. This number then records your covered wages or self-employment. 

As you work and pay FICA tax you earn Social Security credits, when you retire these will be used to calculate your retirement benefits. However, sometimes people decide to be paid in cash or “under the table” in order to avoid FICA tax and other taxes but this is not advised by Certified Financial Planners (CFP) because it does not get registered by Social Security which later means you cannot claim the benefits. It may seem like a good idea for the present day, but in the long run being paid by cash will not benefit you. 

Furthermore, the US is facing a problem due to baby boomers creating an aging population. There is not enough people in the workforce to support the number of those retiring that will be receiving benefits from Social Security. This means that the tale-end of the baby boomers and the generations after them will have their retirement benefits potentially be cut, in fact SSTF will be depleted according to Social Security Administration. 

As the future for Social Security benefits it is unsure, therefore it is important to save more and spend less. To think there is a reliable source in the future of Social Security benefits should not be case. It is much better to be resourceful through your own savings. 

To learn more about Social Security and how to save more, spend less work with a Certified Financial Planner (CFP) practitioner or reach out to the Financial Planning program here at California Lutheran University for more information.

About the author:Rosie Baker is a undergraduate student at California Lutheran University studying Communication with an emphasis in PR and Advertising. She is also minoring in Creative Writing.

References:

Social Security Administration. (2019). Retrieved from https://www.ssa.gov

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