Broker Check

Aligning Your Values: Incorporating Philanthropy into Financial Planning

August 29, 2023

70% of Americans say they plan to change their lifestyles in the next year to make a more positive impact on the world. Those who value sustainability may begin shopping local or opting for reusable grocery bags. Meanwhile, donating old school supplies may be the first step for those who value education. Your personal values drive the choices you make every single day. Therefore, your values should also be important in your financial decisions. At Client 1st Financial, we aim to help our clients develop a personalized financial plan that aligns with their core values. This way, you can build a legacy that you are proud of. 

The first step is simple. Before incorporating personal values into your financial plan, you must know what those values are. Explore different causes that you feel are important. These may include sustainable agriculture, renewable energy, conservation, microfinance, or accessibility to housing, healthcare, and education 

Once you’ve established your personal values, Client 1st can guide you through how to incorporate them into your financial plan. One strategy we recommend involves developing a charitable giving plan. With this plan, you can establish ways to give back to your community today and for generations to come. Another strategy we explore is impact investing. Impact investing aims to achieve social or environmental benefits while also generating financial returns. This strategy has gained momentum recently, with 62% of millennial investors believing that impact investing can create more long-lasting change than traditional philanthropy. 

Finally, we must not only choose investments that align with our values but also disqualify investments that do not share our same values. This is referred to as socially responsible investing. Some important considerations when choosing investments may be whether a company contributes to environmental damage, human rights violations, weapons production, or supports alcohol abuse, drug use, and gambling. Take some time researching companies and causes you plan to invest in. Client 1st can help guide you through this process through our Charitable and Philanthropic Planning services.