Children have the gift of time for building their future. Unfortunately, thousands of young people waste their early opportunity to start building an emergency fund, saving for adulthood, and investing for retirement. Here are 3 examples:
A neighbor who finished the first year of college with a 3-point average (good grades!) decided to move to New York to find a job and live with her sister. This was not surprising when considering that she used to sell stuff door-to-door to earn money. What surprised me was that she asked if we had any advice? “Yes”, I said, “invest in a Roth IRA”. “What’s a Roth IRA?”, she asked. Neither she nor her college-graduate parents knew about IRAs.
Two grandmothers told me on separate occasions that they wished their young adult grandsons would invest in the stock market.
References 1 & 2 describe the problem and correction for delinqent investing.
- Tanisha A. Sykes, This 30-something investor isn’t freaking out about her 401(k) — she’s catching up, 7/5/2017, https://www.usatoday.com/story/money/2017/07/05/young-investors-late-bloomer/103394004/
- Wayne Pinsent, 5 common mistakes young investors make (updated 5/21/18): https://www.investopedia.com/articles/younginvestors/09/common-mistakes-young-investors.asp
Copyright © 2018 Douglas R. Knight