Our kids are going to have it tough when it comes to saving for retirement.
Pensions are going away. Just 18% of private industry employees were covered by defined benefit plans in 2011, according to the Bureau of Labor Statistics.
What’s more, in just a few short decades, Social Security is on track to be able to pay out just 75% of the amount it will be obligated to pay.
With do-it-yourself retirement now the norm, today’s kids will likely need to secure well more than a million dollars before they stop working, T. Rowe Price’s 2013 Parents, Kids & Money Survey found.
That’s why it’s more important than ever to establish solid savings habits in the home.
“Kids will model their parents in just about everything, and that includes financial habits,” says Andrew Housser, co-founder and CEO of Freedom Financial Network, a financial services firm with headquarters in San Mateo, Calif. “The sooner you start following a budget, setting up your savings and investments, the more your child will pick up on those skill sets.”
Follow our 6 smart moves to teach kids to save, and you’ll prepare your children for a more secure financial future.Read More
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