Financial Coaching Review


Sunday I had a financial coaching session, no charge, with a 25 year old Starbucks employee. We covered everything from 401-k contributions to using mail order prescription service-it was a great way for me to spend some time Sunday. Here are some overviews of our session: 1. He got signed up for his 401-k starting with a 6% contribution level-on a pre-tax basis.
2. He is making after tax contributions to purchase Starbucks stock at a 15% discount. His contribution will start at 4%.
3. He is spending $200 a month for insulin-out of pocket. He is going to shop the prescription at various pharmacies and investigate whether or not Starbucks offers a mail order prescription service. This could easily save his 40% or great savings. He was also unaware that prescriptions can vary greatly in price by pharmacy and stores.
4. He is comparing auto loan rates to see if it makes sense to refinance. He is also going to start writing the check himself instead of giving the money to his parents and they write the check. This practice is more common than you may think and I think it undermines one’s self esteem.
5. He is going to apply for a credit card and put all gas purchases on it to start with. He will pay it off in full and on time every month. He currently has no credit cards. He needs to establish a FICO score and great credit history.

For being 25 he is dangerously naive in the financial ways of the world-he just needed someone to sit down with him, explaining the basics and gently kick him in the fanny! I see this as a huge positive step in the financial journey!

Steve Mertz
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2 Responses to “Financial Coaching Review”

  1. Tim MMF says:

    Sounds like you’re helping him get on the right track Steve…good job! How much does Starbucks match on his 401k contributions?

  2. Steve Mertz says:

    Thanks Tim-If memory serves me correctly they match 4-6% of his contributions.How can you pass up free dough?

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