Justine Kelly, personal financial planner at Modern Cents in St. Thomas, Ont.Supplied
In the Behind the Advice series, Globe Advisor asks advisors about their relationship with money from a young age, lessons learned over the years and how their experiences influence the advice they give to clients. We’ve also launched a Behind the Advice podcast – find all the episodes here.
Justine Kelly, personal financial planner at Modern Cents in St. Thomas, Ont., talks about growing up in and out of foster care, and how that experience taught her to budget and work toward financial independence long before she was helping others with their finances.
Describe your upbringing.
I had a difficult childhood. I grew up with a single mom who suffered from mental health issues. She lived off a disability pension, so we were quite poor. We had to move apartments every six months or so and relied on food banks regularly to eat.
My father made pretty good money as a truck driver, but he didn’t support us financially. He was away a lot, and when I visited him, I remember he had expensive stereo equipment and TVs, so I saw different ends of the financial spectrum. I also spent a lot of time in and out of foster care until my mid-teens when my mom’s health issues left her unable to look after me.
I was very determined, from a young age, that I would never have a life that either my mom or dad had. My dad made good money but, in my opinion, didn’t spend it on the right things. As for my mom, I knew I wanted to have kids one day, but I wanted them to have a stable life.
How did this upbringing influence your money habits?
Growing up with limited resources and moving from home to home, I learned to stretch what I had. At 16, I moved out on my own, leaving my last foster home with a modest income of $663 a month (a subsidy from the Children’s Aid Society instead of them paying a higher amount to a foster family).
As I was too young to establish credit, I learned quickly how to manage every dollar. When money ran out before the end of the month, I experienced first-hand the challenges of relying on food banks or walking instead of affording a bus pass. Those experiences taught me how to budget and motivated me to work toward financial independence.
When I started earning my own money as a teenager, I was able to save a lot of it, having already mastered living on less. This marked the beginning of my interest in investing and understanding compound growth. I started saving in a high-interest account, laying the groundwork for my financial future.
What did you want to be growing up?
I wanted to be a lawyer but realized that path would likely come at the expense of work-life balance. The length [of time] and cost of schooling also influenced my decision. For a while, I also thought about getting into social work because of my background. I wanted to make a difference for others but thought it might be too difficult, mentally, because I knew I couldn’t save everybody.
How did you get into financial services?
Personal finance math was one of my favourite subjects in high school. One day, while looking at Fanshawe College courses, I found an interesting financial planning program. I got into the program and later landed a co-op placement at a wealth management firm, at which I worked for eight years after graduation. I then worked at a couple of larger financial services firms before starting my own business a little over a year ago.
Today, I’m a consultant and paraplanner, doing financial plans and training for other advisors and firms, and a consultant for an advice-only planning firm, Modern Cents.
What is your biggest money mistake, and what did you learn from it?
Financing a brand-new vehicle with low resale value. During a separation, I returned the car and faced a much larger financial loss than anticipated due to depreciation. That experience taught me to approach car purchases differently. Now, I only buy slightly used vehicles and negotiate the costs to minimize the impact of depreciation.
What are you best at when it comes to your own finances?
Contingency planning. My life has been full of unplanned events, so I’ve developed a strong focus on preparing for the unknown. This skill has saved me countless times and is something I rely on consistently.
What’s the hardest piece of money advice for you to follow?
Managing cash flow and budgeting for my children’s expenses and experiences. I tend to over-rationalize spending on creating memories for them, likely because I want to give them the experiences I didn’t have growing up. Balancing this emotional drive with financial discipline is an ongoing challenge.
What do you worry about when it comes to money?
Not being able to fully enjoy my savings in retirement because of unforeseen health issues or events. I also see clients hesitant to spend their retirement savings out of fear of running out. We work hard to save for our goals, and it’s important to allow ourselves to enjoy the rewards of that effort.
What advice do you have for someone wanting to enter this industry?
Many assume that a career in finance is all about numbers, but it’s really about people and relationships. Technical skills and knowledge can be learned, but understanding human behaviour and managing relationships are the most critical aspects of the job. If you can connect with people and help them navigate their financial lives, you’ll excel in this field.
This interview has been edited and condensed.