Wednesday, July 19, 2017

Millennials and Retirement

Financial Advisor Magazine looks at a survey by BMO Wealth Management of Millennial financial literacy.  The news is not great.

More than one-third of the respondents thought that retirement was too far off to be a priority. Another 22 percent of respondents said that they would rather pay off their accumulated debts before saving for their retirement.
As the Wall Street Journal pointed out in the last post, the best solution?  More financial literacy in schools. 

Sunday, July 9, 2017

Teen Financial Literacy Not Improving

There is a guest column in the Wall Street Journal today speculating as to the reasons why teen financial literacy is not improving.

While the reasons behind the lack of progress are interesting, the solution is too.

Key point:
The most scalable solution to this problem would be to teach financial literacy in school. We need students to be financially literate before they make financial decisions, such as whether to go to college and how much to borrow to finance that education. We also must open access to financial education to a broader group of young people. If we fail to do this, not only will our youth start on an unequal footing, but their inequality gap will continue to grow.
Truth!