Take-Aways From a Virtual Conference for Financial Educators

 I recently attended segments of a virtual “Back to School” conference for financial educators sponsored by Next Gen Personal Finance. About 400 educators attended one or more sessions. Below are some take-aways that stood out to me:

Tax-Deferred Retirement Savings- Savings contributions in tax-deferred plans, such as 403(b) plans used by teachers, are more critical than ever. Public sector employee pension benefits have been eroding and 13 states do not pay into Social Security to cover their employees.

 

Investment Fees- It is not enough to look at quarterly statements for your retirement savings plan (or other investments) to see how much the account balance increased. You must also look at how much was taken out in fees.

 

Three Fund Portfolio- Investors can create a globally diversified, low-cost portfolio with three index mutual funds: a total stock market index fund comprised of a wide variety of U.S. stocks, an international stock index fund, and a U.S. bond index fund.

 

Fraud Impacts- Fraud affects every generation differently and AI is an accelerant of fraudulent pitches. The #1 type of fraudulent scam for young adults is online shopping while common older adult scams include Medicare and health insurance scams, tech scams, and romance scams.

 

BNPL and Credit Scores- Buy Now, Pay Later (BNPL) debt repayments will start counting toward credit scores in late 2025. BNPL use has grown the most recently for everyday essentials like groceries, gas, and utilities. Credit scores will drop if late BNPL payments are made.

 

Gambling Trends- A total of 38 states allow online sports betting on cell phones and there is a “bro mentality” surrounding it like “if you don’t gamble, you aren’t in the game.” Online betting is rapidly growing among minors and is starting to be added to state financial education standards.

 

Financial Education- 29 states now have financial education course mandates for high school graduation. This covers about 76% of U.S. students. The state of Delaware is expected to be state #30. Financial education does not just impact students but their family members as well.

 

Four Milestones of Adulthood- The milestones have traditionally been moving out of a childhood home, stable employment, getting married, and having children. Adulting is different today and a big part of this is economic. 25 to 34 year olds are choosing different pathways.

Compound Interest- The biggest financial concept to teach young adults is the power of compound interest. People can only become disciplined savers if they can see the potential long-term accumulation of small amounts of savings. Teens also need to learn what household expenses, such as a cell phone, cost. Many are unaware of their actual monthly cost.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.