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Preparing for a Longer Life: Financial Literacy for Future Generations

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Real Estate Agent with Coldwell Banker Realty ~ 512.750.6899

I was listening to a podcast the other day, and they were discussing how our young people will need to make financial plans differently from those currently retiring. Even some retiring now find their retirement plans need to be updated to adjust for living longer than expected.

In 1900, the average life expectancy in the US was 47 years, and in 1950, it grew to 68 years. According to Macro Trends, the average life expectancy in 2024 is 79.25 years. With life expectancy steadily increasing, it’s crucial for the next generation to be equipped with the financial literacy necessary to navigate their extended futures.

Unfortunately, our schools have gotten off track and are not adequately preparing our children for the world we live in. Values and attitudes begin at home with parenting and are supposed to be reinforced in the school environment. This is not happening consistently; some parents want the schools to act as parents, while others see the negative impact of giving schools too much control over their children's development.

Young kids need to learn the value of a dollar, what it takes to earn it, and how far it can go. If they are going to live longer than the current average life expectancy, they need to prepare for the future. Learning to save a portion of their allowances at an early age is a start. They need to acquire many skills to maintain a lifestyle they can live with comfortably. Financial literacy must be practiced in numerous ways, beginning with strategies implemented at home and reinforced in school. Understanding investing and identifying sound investment opportunities will be paramount for them to develop a sustainable stream of revenue.

Evaluating what jobs will be available and what education is necessary to obtain these jobs should be foremost on young people’s minds. The only constant is change, and many jobs are being phased out as technology takes over. It’s essential to stay informed about the evolving job market and the skill sets required to remain competitive and enjoy financial security. 

The need for financial literacy has never been more critical. As life expectancy continues to rise, our young people must be prepared to manage their finances wisely to ensure long-term security. Additionally, education will play a crucial role in obtaining relevant jobs in a changing world. Schools and parents must work together to provide the knowledge and tools necessary for the next generation to thrive in a world where financial planning and adaptable skills are more important than ever.

“If you don’t make the time to work on creating the life you want, you’re eventually going to be forced to spend a lot of time dealing with a life you don’t want.”

Kevin Ngo

 

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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Good Morning Dorie, and yes...Yes, as people live longer, it's essential for young individuals to develop strong financial skills to secure their future!

Jul 08, 2024 08:36 AM
Dorie Dillard Austin TX

They really do Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 !

Jul 08, 2024 09:16 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Dorie,
This is such an important subject. I think it's hard for people to plan for retirement when they are currently having a hard time making ends meet from paycheck to paycheck. I was blessed to be raised by an aunt and uncle who made me keep a ledger of all the money I earned and how I spent it. They never questioned what I spent my money on, but when it was gone, it was gone until I earned more. It was a great foundation for adulthood.

Jul 08, 2024 09:02 AM
Dorie Dillard Austin TX

Carol Williams ..it was an excellent way to learn the value of a dollar. My parents gave me a set amount when I went to college and if I spent it all I had to come up with an alternative plan. One spring I spent too much money and didn't have enough for my flight home. I took the train and never did that again!

Jul 08, 2024 09:18 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doris and the times have change and one of my aunts was 100, another one 99 and another one was 98.  My mom and dad both made it till 77.  Times have change from 47

Jul 08, 2024 09:07 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Will Hamm ,

Yes times have changed and many are living much longer than expected. The only constant is change and jobs are changing with technology taking over so many jobs so a way to make a living is changing.

Jul 08, 2024 09:22 AM
Roy Kelley
Retired - Gaithersburg, MD

Many real estate agents fail to fully fund their retrement accounts. The money spent on luxury vehicles is better spent when used for retirement accounts.

Jul 08, 2024 09:36 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I really am not sure I blame the schools. I think our government (at least a large part of it) sees government dependency as future votes.

Jul 08, 2024 09:45 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Even some of us more mature adults need to make sure our own financial house is in order and for anyone in our sphere that we have some influence make sure they understand. So many live for today and are in debt and will surely be in real trouble down the road.

Jul 08, 2024 09:59 AM
Dorie Dillard Austin TX

You are right Ed Silva, 203-206-0754 there are many now not near ready to retire with adequate funds to live. 

Jul 08, 2024 02:17 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Dorie Dillard Austin TX I totally agree that our younger generations need to prepare for their future retirement years. I strongly believe it needs to start at home with parents, and not put that burden on the schoolhouse. 

Jul 08, 2024 10:32 AM
Dorie Dillard Austin TX

It absolutely needs to start at home and value of the dollar needs to be drilled into children Jerry Newman 

Jul 08, 2024 02:18 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Dorie... unfortunately, our education system and parents have fallen down on the job in this regard. Only nine states currently require students graduating from high school to take a personal finance course... North Carolina, I'm happy to say is one of them. According to a recent WalletHub study,  Although  NC's requirement that all public high school students must pass a personal finance class before they can graduate has been in place for only one school year, the effects must be working. North Carolina ranked first for its high school literacy grade. This study also showed that residents of North Carolina rank 6th nationally in financial literacy. 

Jul 08, 2024 10:56 AM
Dorie Dillard Austin TX

Good for North Carolina Nina Hollander, Broker According to the American Public Education Foundation's Nation's Report Card on Financial Literacy, Texas received a "B" grade in 2023. The report card also noted that Texas high schools are required to offer a stand-alone Personal Finance elective, but making it a graduation requirement could earn the state an "A".

Jul 08, 2024 02:19 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Dorie this is one more example of how the school system is failing our children.  They are more concern about the pronouns that are used, than what TRULY impacts our lives.

Jul 08, 2024 01:05 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I have definitely seen that happen Roy Kelley !

You are right about the government dependency Jeffrey DiMuria 321.223.6253 Waves Realty ! But the pressure to spend more time on pronouns and figuring out what gender students are has no place in the schools. We need to get back to the basic courses and get back on track learning!

Jul 08, 2024 02:15 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon George Souto ,

Bingo!!! You are exactly right..we are falling further and further behind in our educational system because we are not addressing what is important that truly impacts out lives.

Jul 08, 2024 02:21 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

It is important for the younger generation to assess which college degrees will help them accomplish their goals.  If I were younger and entering college, I'd focus on acquiring a tech degree.  Also, apprenticeships can provide a career that pays well, and is devoid of college debt, which can bog one down financially, for years to come.

Jul 08, 2024 07:24 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Financial literacy is very important and I have always thought that it should be taught properly early on in school.  Not everyone is fortunate enough to have parents that will instill good financial literacy into them.

Jul 09, 2024 06:16 AM
Kelly McGovern
Realty Concierge International - Bellingham, MA
Working with Kelly is a good move

I find that schools aren't teaching kids about financial responsibility.  Everything from budgeting, learning about debt, understanding credit, investing/participating in a retirement fund, know/understand about pension jobs, and/or investing whether in real estate, stock market, a small business etc. are NOT taught. 

Jul 11, 2024 01:23 PM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Dorie. Knowledge is power. Children should be taught the benefit of proper financial management. Then they should be held responsible to implement it. Some will succeed and some will not. Some thing will never change. Enjoy your day.

Jul 13, 2024 04:57 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I totally agree - financial literacy is so important, and being able to plan for the future is a must. Or else that last quote will be true.

Jul 13, 2024 05:09 AM