I recently attended the 2019 Association for Financial Counseling and Planning Education Symposium. Below are some key take-aways about personal finance topics and financial education:
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FINRA
has a useful online calculator to determine retirement savings goals. It asks
12 questions including amount already saved for retirement, expected annual
income, current age, planned retirement age, inflation rate, and current tax
rate. The calculator is available at https://tools.finra.org/retirement_calculator/.
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Critical
issues related to retirement planning that surfaced in a group discussion at
the Cooperative Extension Pre-Symposium workshop included: lack of savings,
health care concerns, outstanding debt, downsizing living spaces and
possessions, and emotional issues related to finding fulfillment after leaving
a long-time career.
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Financial
education is most successful when it is accompanied by resources and assets.
Examples are a “living wage” and individual development accounts (IDAs) for
people with limited resources. People will talk about money if financial
educators and coaches create a safe, “no shame” place to do so.
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The
financial security of Americans is foundational for a better economy.
Conversely, financial insecurity generates costs and consequences. One third of
Americans have a second job and 53% reported feeling anxious about their
finances according to the 2018 National Financial Capability Study.
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Four
“drivers” of the financial insecurity experienced by many Americans are
declining wages, the increasing cost of housing, decreased savings, and
increased household debt. With more stable finances, people can be producers in
the economy as well as consumers.
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