Creating a Values-Based Financial Plan
More savers and spenders are thinking big picture when it comes to their financial decisions.


Personal values play an important role in many aspects of our lives and have become more prominent recently in how we think about and manage our finances. More and more investors are asking how they can support the causes they care about through their financial decision-making.
Charles Schwab’s latest Modern Wealth Survey found that 69% of Americans say that supporting causes they care most about is a top consideration when it comes to their financial decisions. If you count yourself among them, consider starting with a financial plan to ensure you stay on track toward your long-term goals while also staying true to your personal values.
Define your saving and spending goals
The best way to start is by translating your dreams into concrete financial goals. Identify your most important goals and commit to saving toward each. Write things down so you can build confidence, stay focused and refine your plan over time while prioritizing both your own financial wellness and the greater good.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For example, we recently had a client looking for ways to maximize her charitable donations with a limited budget. After pinpointing the causes that she connected with most – the environment and medical research – we laid out a three-year charitable-giving budget. This helped her stay on track with her long-term plan while mixing in creative ways to give back, including ongoing gifts through a donor-advised fund supporting cancer research and volunteering for weekend river cleanups.
I also see this values-based approach in spending habits, with nearly eight in 10 Americans (79%) indicating that they aim to support brands that align with their beliefs. Shopping local, buying secondhand goods, and choosing brands that support environmental and social causes are a few ways consumers make an impact with their purchasing power. Knowing what you need to save toward your goals likewise helps you determine how much you can spend. Armed with that knowledge, you can then spend in a way that matches your values.
Align your investments with your values and interests
With personal beliefs and interests becoming more important in saving and spending, investors are also seeking ways to tie those values into their personal portfolios. Almost three-quarters of American investors (73%) agree that their values guide their investment choices, and most (69%) say that they invest in companies that align with their personal values. When looking at the factors that influence investing decisions, a company’s reputation (91%) and its corporate values (81%) are almost as important as more traditional factors like a company’s performance (96%) and its stock price (93%).
As you build your own portfolio, there are various options to help align your investments to your values. Environmental, social and governance (ESG) investing or socially responsible investing (SRI), are two strategies gaining traction. Additionally, thematic investing, an approach that uses research to identify trends, opportunities and relevant companies and group them into overarching themes, allows you to personalize your investing based on interests and values.
Whether you’re an experienced investor or just starting out, you can use DIY investing tools and resources or work with a financial adviser to invest your money while making a positive difference. Whatever your goals or investable assets, you have choices to ensure you’re on the right track.
Investing involves risk including loss of principal. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
©2022 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC.
(0822-2KDC)
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joe Vietri has been with Charles Schwab for more than 25 years. In his current role, he leads Schwab's branch network, managing more than 2,000 employees in more than 300 branches throughout the country.
-
Ten Cheapest Places to Live in Texas
Property Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for You
AI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key Pieces
If retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden Risks
Potential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.