As financial literacy is no longer a nice-to-have skill for lawyers – but increasingly central to long-term career success, sustainability and wellbeing – Cassandra Crawford has revealed the key steps legal professionals need to take to be financially informed and future-ready.
Speaking on a recent episode of The Lawyers Weekly Show, Cassandra Crawford, Commonwealth Private national head of professional services, outlined the critical questions lawyers need to ask and the practical steps they must take to build strong financial literacy and ensure they are well-equipped to make informed financial decisions throughout their careers.
In the same episode, she explained why private banking has emerged as an indispensable tool for legal professionals now more than ever.
The starting point to becoming financially educated, Crawford explained, is far simpler than many realise, beginning with clearly defined objectives and a strong understanding of why improving financial knowledge matters, which lays the foundation for more strategic and informed decision making.
“The first thing that came out of that event we found was that [lawyers] would need to have really clear goals and understand what it is that they’re looking to achieve, and that’s really the key to any financial strategy,” she said.
Once goals are set, Crawford explained, the next step for lawyers is to take an honest look at their current financial position, considering not just their salary but all aspects of their income flow, to establish a clear and accurate baseline.
“Secondly, they need to take stock of their current position. So this is that part of understanding the income flow. What is the cash? What [are] their income streams? Do they have other investments that are earning them investment income?” she said.
“Because their income can fluctuate over time. So, [lawyers] really need to stop and figure out that baseline for finance.”
From there, Crawford emphasised that lawyers should focus on structuring their finances – especially lending and ownership arrangements – to optimise tax efficiency and support long-term growth.
“Thirdly, I think they really need to structure the lending rights, so you have the right ownership structures for tax efficiency and their long-term growth, and they really should get advice around this,” she said.
“I think, often they don’t know where to go at that point, and their private bankers can also direct them to other contacts if they don’t have that in that space.”
One of Crawford’s key messages is that financial education shouldn’t be a solo endeavour, highlighting the benefits of working with a private banker who understands a lawyer’s earning profile and career to guide smarter wealth decisions.
“Lastly, don’t go it alone. So lawyers do need to engage someone; they do need to engage a private banker who really understands their earning profile and their career. I suppose it helps them make smart decisions with their wealth,” she said.
By prioritising financial planning and taking these steps, Crawford explained, lawyers gain confidence and security in their own finances, which, in turn, empowers them to better support their clients and build thriving practices.
“When you know that personally you’re supported and that you’re on track for what you want to achieve, you can comfortably go out there and really wrap your arms around your own clients and make your business successful,” she said.
