Money Letters To My Daughter with Jackie Cummings Koski
Episode 161
Episode Guide
Episode Summary:
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Episode Show Notes for ChooseFI Podcast
Episode Title: Jackie Cummings Koski: From Poverty to Financial Independence
Episode Summary
Jackie Cummings Koski shares her inspiring journey from growing up in poverty to achieving financial independence. As a single mom who never made six figures, Jackie built a six-figure HSA and is retiring from corporate America after 20 years. Her story highlights the importance of financial literacy and the need for diverse voices in the financial independence community. Jackie discusses her commitment to passing on her financial knowledge to her daughter through her book "Money Letters." The conversation emphasizes the power of hard work, education, and taking ownership of one's financial destiny, illustrating that financial independence is attainable regardless of one's starting point.
Key Topics Discussed
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Jackie's Background
- Jackie shares her childhood experiences growing up in poverty and being raised by a single dad.
- Discussion about the lack of formal financial education she received.
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Financial Literacy and Diverse Voices
- Importance of representation in financial independence discussions.
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Work Ethic and Financial Changes After Divorce
- Jackie's realization of her need for financial knowledge during her divorce.
- Engagement in an investment club as a significant turning point.
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Building a Six-Figure HSA
- Explanation of how Jackie maximized her contributions to an HSA and benefits of a high-deductible health plan.
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Jackie's Fire Letter and Career Transition
- Sharing her "fire letter" with her employer upon achieving financial independence.
Key Insights
- The importance of financial literacy: Saving and investing is crucial, regardless of income levels.
- Habits Begin Early: Starting small with savings lays the foundation for future financial discipline .
- Community Involvement: Engaging in community finance discussions can provide critical support and education.
Actionable Takeaways
- Start saving, no matter how small .
- Educate yourself about HSAs and maximize their benefits .
- Communicate openly about finances with partners .
- Write letters to share financial wisdom with future generations .
Quotes
- "I had an insatiable desire to improve my personal finances."
- "Diverse voices in the financial independence community are essential."
- "Saving $50 a week for 40 years can lead to one million dollars."
Resources Mentioned
- Money Letters to My Daughter
- EconoMe Conference
- The Memo: The Five Rules for Your Economic Liberation
Discussion Questions
- How can diverse voices impact the financial independence community?
- What strategies can be effective in teaching financial literacy to youth?
Related Resources
- Follow Jackie on her journey toward financial literacy in underserved communities.
Host Contact Information
- Brad Barrett and Jonathan Mendonsa
Call to Action
If you enjoyed today’s episode, please consider subscribing and leaving a review on your favorite podcast platform. Join us next time for more insights on achieving financial independence.
This report captures all relevant information while adhering to stylistic requests and corrections.
Achieving Financial Independence: Lessons from Jackie Cummings Koski's Journey
Jackie Cummings Koski's story is a testament to the power of financial literacy and resilience. As a single mom who grew up in poverty, Jackie transformed her life by making informed financial decisions, ultimately achieving financial independence. Here are actionable insights to help you shape your financial destiny, based on Jackie’s experiences.
Understanding Your Financial Background
Embrace Your Origins
We all have different starting points in our financial journeys. For Jackie, growing up in rural poverty taught her valuable lessons about money management without formal education in finance. Reflect on your financial background—what lessons did you learn from your family about money?
The Impact of Early Experiences
Jackie's determination not to live in poverty as an adult fueled her desire to improve her financial situation. Use your past experiences, whether positive or negative, as motivation for your future. Are you driven to break a cycle or follow a different path? Acknowledge this desire and let it guide your actions.
Building a Strong Work Ethic
Learn from Role Models
Jackie learned financial discipline by observing her father's work ethic. His commitment to providing for their family instilled in her the importance of hard work. Identify role models in your life whose work ethic inspires you. What can you emulate from their behaviors to enhance your financial journey?
Juggling Responsibilities
During college, Jackie worked over 50 hours a week while studying full-time, a reflection of her dedication. While such extreme measures may not be sustainable for everyone, consider part-time work or freelance opportunities that align with your skills and offer flexibility.
Invest in Financial Education
Seek Knowledge and Resources
Jackie’s epiphany after her divorce led her to pursue financial literacy. She joined an investment club to expand her understanding of money management and investing. Take initiative and seek out educational opportunities related to finance. Whether it's books, podcasts, or workshops, prioritize continuous learning.
Create a Community of Support
Surrounding yourself with knowledgeable individuals can enhance your learning experience. Join forums, attend local classes, or participate in online communities focused on financial independence. Having a support system encourages accountability and open discussion about financial matters.
Saving and Investing Wisely
Maximize Health Savings Accounts (HSAs)
Jackie built a six-figure HSA through diligent contributions. HSAs are powerful tools for health and retirement savings, allowing tax-free growth when used for qualified expenses. If you have access to an HSA, consider maximizing your contributions while maintaining low medical costs to benefit from potential compounding growth over time.
Start Small, Dream Big
Jackie emphasizes the importance of saving, even starting small. She highlights that saving just $50 a week could result in over a million dollars in 40 years. Start your savings habit today, regardless of your income level. Every little bit counts and builds a solid foundation for your financial future.
Financial Communication in Relationships
Open Conversations About Money
Jackie's experience with her ex-husband revealed the necessity of communication around finances in a partnership. Transparent discussions about money can prevent misunderstandings and empower better decision-making. Establish an open dialogue about your financial values and goals with your partner.
Educational Endeavors for the Next Generation
Share Financial Knowledge
Jackie wrote her book "Money Letters to My Daughter" to convey critical financial lessons to her child. Consider documenting your financial lessons to share with loved ones or future generations. This practice not only reinforces your understanding but also empowers them to make informed financial decisions.
Encourage Early Financial Habits
Introduce kids and young adults to basic financial concepts early on. Simple actions like saving a portion of allowance or teaching them about budgeting can instill lifelong financial habits. Foster discussions about credit and the importance of long-term saving from a young age.
Prepare for Retirement and Beyond
Create a Comprehensive Financial Plan
As you navigate your financial independence journey, outline a long-term plan that includes retirement savings. Identify specific accounts and vehicles that will serve your future needs. Consider diversifying your investments to mitigate risks and secure your financial future.
Use Your Insights for Improvement
Reflect on budgeting strategies and spending habits regularly to identify areas for improvement. Track your spending and reassess investments and savings goals to stay aligned with your overall financial objectives.
Conclusion: Your Path to Financial Independence
Jackie Cummings Koski’s experiences illustrate that financial independence is achievable, regardless of one's background. By developing a strong work ethic, prioritizing financial education, fostering communication, and sharing knowledge with the next generation, you can shape a prosperous financial future. Start taking actionable steps today to embrace your financial destiny.
For further resources or to connect with other like-minded individuals, consider joining local financial literacy classes, investment clubs, or visiting personal finance websites. Your journey to financial independence begins now.
Jackie Cummings Koski shares her story as a single mom that made FIRE a reality. She proves that there is no "one way" to achieve FI. The goal can be accomplished by people from all walks of life and Jackie offers a unique perspective of FI.
Jackie's Story
Jackie grew up in the rural south with five siblings and a single father. Her dad worked extremely hard to provide for his large family. Although he worked seemingly constantly, the family still lived paycheck to paycheck.
So it was very, very tough growing up and the one thing that stuck in my head that I really remember is that I didn’t want to live like this when I got older. But my Dad, he is like one of the most amazing people I have ever known; to be able to pull off raising six kids, I mean he must have been able to do things and stretch a dollar like no one would imagine!
He went to work every single day. She never saw him take a sick day. Plus, he always had a second job in the mix. Although he never sat her down to explicitly talk about money, she learned through his actions. He avoided loans of any kind and worked hard to make things work for his family.
Unfortunately, her father passed away when she was a senior in high school. But she has carried the lessons of hard work and self-reliance with her throughout her journey.
https://www.youtube.com/watch?v=cVr-L19IKrE
Working Through College
After her father's example of hard work, Jackie decided to tackle college with brute force. She worked 50+ hours a week throughout her college career to avoid taking on student loans. Looking back, she wishes she had been able to spend more time on her academics.
Even though I was working full-time, I was still going to school full-time, as well. So, I was juggling a lot! And I didn’t really get to participate in a lot of the academic experiences like maybe joining clubs, spending the time that I knew I needed for certain classes, and my GPA certainly would have been a lot higher.
If she could do it over, she would focus more on finding scholarships to fund her education instead of working 50+ hours a week. However, she did come out of college with very little student loan debt so it was worth it at the time.
Listen: Real Hourly Wage
FI Journey
For Jackie, the desire to learn more about personal finance started around the time of her divorce. Instead of looking at her finances as a part of a team, she realized that she would have to start managing money decisions on her own.
During the divorce process, she was forced to take a closer look at her financial situation. She found out that her husband with a similar career path had accumulated $120,000 in his retirement accounts while she only had $20,000. She still received half of his retirement funds in the settlement. But it proved to her that she needed to learn a lot about personal finance.
A lot of times some the things we do wrong, they teach us bigger lessons than the things that we do right.
Listen: Poverty, Divorce And FI By 43, Bonnie Truax
Better Investing Club
Once the divorce was finalized, she had to start reinventing herself as a single person. Part of that process was discovering her hidden interests, one of those was finances. She found an investment club through Better Investing which opened her mind to the world of investing. After three or four meetings, she officially joined the club and learned so much about investing in the stock market.
Money Letters To Her Daughter
While walking the path to FI, she picked up a lot of personal finance information along the way. She wanted to ensure that this knowledge was passed on to her daughter in an entertaining way.
Since she always loved writing, Jackie wrote a book of letters to her daughter to pass on her money knowledge in an easy format. The book, Money Letters 2 My Daughter is designed to share money lessons in a brief way.
Passing Along Her Knowledge
Jackie's desire to share her knowledge did not stop with her daughter. She also strives to bring financial literacy to underserved populations. She works with high schoolers and college students to teach them the basics of money. Although it can be a tough age group, she loves seeing the light bulbs come on.
One of the ways she excites their interest is through $2 bills. She passes these out for insightful questions or good answers to her questions. She encourages them to save something, even if it is only this $2 bill.
When she has a short amount of time with a group, she focuses on the basics. She wants them to understand that always saving something is critical. Even if you are only able to save $2, it will add up. She typically covers credit because someone usually asks about it. Finally, she also shares the value of compounding growth which starts to get their minds thinking ahead.
Six-Figure HSA
One savings vehicle that has been especially important for Jackie is her Health Savings Account. She first came across it in 2008. Since she and her daughter were relatively healthy, she opted for a high deductible plan that is required to open her HSA.
Before Jackie opened her HSA, she did some research. The three things that stood out to Jackie included:
- The money can roll over from year to year.
- You can invest the fund and just let it grow.
- It was an obtainable number to max out.
After deciding this was a good option for her family, she decided to max it out. One post that really helped her understand the importance of this account was by the Mad Fientist.
Of course, she considers herself lucky that she is able to allow the HSA to grow without pulling out too much for medical expenses. She tracks her expenses with an email system that eliminates the need to hold onto paper receipts. Although the IRS isn't clear on their tracking of expenses, she always makes sure to get a receipt that says the bill has been paid in full.
Once she turns 65, she will be able to pull out this money even if it is not a qualified medical expense after paying taxes.
Jackie will be joining the show in a future episode to talk more about HSAs as a useful retirement vehicle.
Related: The Triple Tax Benefits Of The HSA
FIRE Letter
After 20 years in corporate America, she had reached FI and was ready to move on to her next chapter. However, she wanted her departure from the company to be a positive experience for everyone. So she wrote a heartfelt letter that represented her feelings towards the company. It was an inspiring and uplifting letter that thanked her boss for his support on her journey.
How To Connect
You can connect with Jackie on her site, Money Letters 2. Also, she is speaking at an upcoming conference, EconoMe. Make sure to check it out if you are in the Cincinnati, Ohio area.
The Hot Seat
Favorite Blog, Podcast, or Book: The Memo: 5 Rules for Your Economic Liberation by John Hope Byrant
An Inflection Point: After college, she accepted a job 900 miles away at Walmart in Arkansas. Her brother helped her to pack the yellow Ryder truck provided by her company. As she was driving, she knew it was going to change her world. That was the first step to moving into a new economic reality as a grown-up.
Favorite Life Hack: The 529 plan has been an instrumental tool for her. At first, she had saved money into a 529 to fund her daughter's education. However, her daughter decided to go to community college so there weren't too many expenses. Jackie has been able to stretch the money out in a variety of ways including sharing the funds with three of her nieces and funding part of her own MS degree.
Biggest Financial Mistake: As a struggling college kid, she decided to buy a new car with a payment of $326/month. She quickly realized she couldn’t afford it. She went to the bank to figure out the loan refinance but couldn’t refinance because she owed more than it was worth. It was an awful feeling and she plans to never buy a new car again.
The advice you would give your younger self: She would approach her undergraduate career differently. Instead of focusing on minimum wage jobs, she would spend more time on her school work and aim for scholarship funding.
Bonus! What purchase have you made over the last 12 months that has brought the most value to your life? A Ring Doorbell
Related Articles
- Health Flexible Spending Accounts: When You Can Use Your FSA Money
- Struggle--The Psychology of Poverty with Andrea Motenko
New to FI? Be sure to check out Episode 100: Welcome To The FI Community!