Understanding three key concerns and three time horizons for your peak earning years.
- Whether you’re a child; young adult; or 50-something with a spouse, home and kids, you never want to forget the power of saving first and spending second.
- In your prime earning years, the three main concerns are wealth preservation, tax mitigation and portfolio growth.
- By saving first and spending second, you can focus simultaneously on your short-, intermediate- and long-term financial goals.
Before the young adult in your life gets their first paycheck, make sure they have their money priorities in order. Once they do, the benefits will keep compounding as they go through life.
- Make sure the young adult in your life is contributing at least 10 percent of their paycheck to a 401k plan.
- Even if a young person has had part-time jobs through school, they don’t really understand what it costs to live in the real world.
- Without good saving and investing habits, many young adults find themselves with mortgages, spouses and children, but no nest-egg despite earning a good salary.
It’s never too early to teach kids and young adults lifelong money skills.
- Consider giving kids a weekly stipend of one dollar-times-their age—but with some responsibilities attached.
- Experts say that age 12-to-14 is a good time to start a capitation program for your kids.
- Young adults should have basic budgeting and money skills before heading off to college.
First in a series of age-related discussions about the financial, emotional and psychological aspects of life’s major money decisions.
- You’ve told us that financial literacy is one of the most important topics we cover in our newsletter, blogs and videos.
- Financial literacy is the ability to understand how money works in the real world and the skill sets needed to make informed decisions about all of one’s financial resources.
- April is National Financial Literacy Month and we’ll be sharing a number of educational resources with you about that important topic.