Comments on: The Time To Start Was Yesterday! Why Did It Take Me So Long To Figure That Out?

By: Jane Rosen

Jane Rosen — Tue, 03 Jul 2007 18:07:41 +0000

Our kid’s high school requires a semester of economics in their senior year where they actually learn about money. Besides the traditional course work, they start the semester choosing portfolios and tracking them and also have speakers come in to give them advice about saving, spending, credit cards, 401Ks, etc. The speakers are mostly parents and have a vested interest in providing good advice. At that age, kids will listen to other people’s parents even if they won’t listen to their own. The class prepares them to manage their money a little better in college and when they get their first job.

By: Merrill Dubrow

Merrill Dubrow — Mon, 02 Jul 2007 16:17:43 +0000

Owen,

Great comments and a fantastic example! KBW - I hope you are reading these comments - they can work as long as you put a plan in place.

Remember it isn’t too late!

Merrill

By: Owen Jenkins

Owen Jenkins — Mon, 02 Jul 2007 16:06:06 +0000

Merrill, Good subject matter.

I am reminded of the story that someone told me. If a 20 year old saves $100 a month and stops when they are 30 they will have more money at retirement than someone who started at 30 and saved $100 a month until they retired.

Also another course they should have at high school: How the opposite sex think and feel?

By: Merrill Dubrow

Merrill Dubrow — Thu, 28 Jun 2007 22:12:25 +0000

Karen/Freddie,

I like the idea of course work in high school. I wish i knew a few high school teachers to ask them if this is possible and what courses if any they currently offer.

This seems like a natural - if I was a principal I would add a financial course and “how to survive your freshman year in college” in a heartbeat.

The drop out rate and kids taking 5-6 years to complete college is way too long.

Thanks for your comments.

Merrill

By: Kristy O'Hara

Kristy O'Hara — Thu, 28 Jun 2007 19:20:48 +0000

Hey Merrill,
I hope you’re doing well since we last spoke during our interview! I really liked this posting because of how young I am and how relevant it is. I see so many people my age that have a ton of student loan and credit card debt, yet they still spend like there’s no tomorrow. I cut coupons and contribute to my 401k and save from my paychecks, but I also once read in a women’s magazine one young woman’s secret to saving, and I’ve taken to it. Any time I get money that is unexpected- and by unexpected I mean it isn’t part of my paycheck- I put it in my savings account. Birthday money, Christmas money, bonuses, tax refunds, rewards checks from my credit card, mail-in-rebates, etc. It all goes into the savings account. You’d be amazed at how much you can save in a single year. That combined with saving a little bit from my paychecks — all in an high-interest ING account — allows the money to grow very quickly. It keeps things in perspective and keeps me out of debt, which is a great place to be! And when you don’t go and blow every bit of money you get, then when you do want to spend more on a vacation or something else you really want, you don’t feel guilty about it because you’ve been saving more all along, and it doesn’t break you. I only hope that more young people can read the tactics that all the readers have discussed in their responses to your entry so they can enjoy life and not be burdeoned with debt.

By: Freddie Clary

Freddie Clary — Thu, 28 Jun 2007 14:09:10 +0000

I agree completely with Karen that there should be courses that teach students about practical finance, but I think they should be in high school.
As soon as kids are in college, the credit card offers start to come in fast and furiously, and it is hard not to overspend if all of your friends are doing it.

A course in high school where people “suffered the consequences” of high credit card debt in a learning situation could help many kids think twice before falling into it themselves. (I know it probably won’t be the majority, but at least if the course had an impact on some, then it would be a start).

I’ve heard that there are some of these practical finance courses out there. Do any of you know of kids who have gone through them, and whether they had any effect?

Are any of you close to teachers who could describe whether such courses have been considered in their schools, and if so, what kinds of obstacles they face?

By: Karen Dawson

Karen Dawson — Wed, 27 Jun 2007 16:33:40 +0000

Where do kids learn this stuff?
I’ve often thought for a long time there should be programs in High School, but more importantly in college… in their senior year.
Along with teaching students how to write a resume and find a job…
there needs to be a program that teaches simple “practical” instruction on
Finance - how to save for retirement, how to save for your first home, the importance of good credit, how to buy stocks, bonds, real estate, etc. Since many marriages fail over money, it astounds me the schools have never tackled this.
One good lesson for this young woman is the importance of working for companies that offer a 401K program; early on in our careers who knew?

By: Merrill Dubrow

Merrill Dubrow — Wed, 27 Jun 2007 13:20:23 +0000

Todd,

Interesting comments. It seems like you have a plan and it clearly is working. Your comment about your friends is very much of interest to me. I often think about how some people can afford what they have and come to the same conclusion you did. I do think the amount of money that people are in debt is astronomical at this point. Everything you read supports that premise which is very disappointing and disheartening for the younger generation who wants everything now but really can’t afford it.

Thanks again for commenting.

Merrill

By: Merrill Dubrow

Merrill Dubrow — Wed, 27 Jun 2007 13:16:47 +0000

Twyla,

Thanks for your comments. Suze Orman’s book “Woman & Money Owning the Power to Control Your Destiny” sounds like a terrific read.

Sounds like I know what to get KBW for her birthday!

Thanks again.

Merrill

By: Todd Costello

Todd Costello — Tue, 26 Jun 2007 20:11:39 +0000

This is the first time I have posted a comment on your blog Merrill but I am an avid reader. This topic strikes an interest with me because not only am I close in age with KBW (I’m 27), my father has always presented graphs and charts of 401(k) plans and their benefits since I’ve been about 18.

When you look at the data, every little bit saved now reaps huge benefits later down the road. It is amazing how fast your money can grow with the compounded interest over time. Not to mention, most 401(k) plans are now transferable.

I see my friends, all well employed, driving fancy new cars, buying new boats, eating out for every meal in fine restaurants and purchasing their first homes. I know what they make and I don’t know how they do it. I have come to two conclusions. First, they are either living off Daddy’s money or second, they are in debt up to their eyeballs. Your first home should not cost in excess of $300 K.

As a result from my father’s teachings, I have learned to sacrifice as much as possible now to live a better life later. There is nothing I enjoy more then salt water fishing. However, I am in no position to buy a boat worthy of going offshore. I live in a modest apartment and cut every coupon I can. How many males age 27 do you know of that cut coupons?

I find if I put at least 12% of every pay into my 401(k) on a pretax basis, take a few hundred dollars after that to dump into an ING or mutual fund account, it is a good start. Sure, I pack a lunch three days a week and ride my bike into the office but it is a sacrifice I’m willing to make at age 27 for a 60 foot Viking when I’m 40.