ZINSURANCE |
A blog to help you prepare for life's unexpected
|
ZINSURANCE |
A blog to help you prepare for life's unexpected
|
![]() In my grandfather’s generation, it was just a manner of practice to have a will, life insurance, and a family burial plot with all arrangements pre-determined. In this article comparing Boomers to their Depression era parents, it shared the likelihood that because Boomers grew up in prosperity and have been free spenders, they didn’t save or know how to save, which now is impacting their financial security. I am proud to say that my father, a Baby Boomer, was an exception to what this article indicated, following in my grandfather’s footsteps in making sure his and my mother’s affairs are in order. I and my siblings are grateful. What about the other generations including Gen X, Y (Millennials) and Z? It only gets more alarming. How Generations Compare According to a 2021 TIAA Institute – GFLEC Personal Finance Index study, there is a lot of work to do in financial literacy.
The bottom line, according to the Academic Director of the GFLEC, is financial literacy is essential. “The number of Americans who lack financial literacy, particularly in our younger generations, is deeply concerning,” states Annamaria Lusardi, “Until financial education is offered in schools, institutions of higher education, and workplaces, we will continue to see generations of adults struggling with their personal finances.” Three Buckets ![]() My daughters are 8 years old, and it was around when they turned 5-years-old that my husband and I began our three buckets of income distribution with our twins. We noticed that our daughters were in an “I want, I want, I want” mode of thinking, and we decided they needed to begin to learn the value of money. The buckets are entitled, “Save,” “Share,” and “Spend.” From money given as gifts from family, our daughters are taught to manage their money using these three buckets as their guides for decision-making. We have guided them in the following way. Ten percent of all money received must be distributed to Save. Another 10 percent is to be distributed to Share. The remaining 80 percent is then remaining to Spend. Savings continues to accumulate and then is deposited into a bank account. Money set aside for sharing can be given at their discretion. For instance, their school has NUTS (No Uniform to School) which can be taken advantage of periodically with a donation given to the school. This is to be paid out of their own Share bucket to take advantage of this opportunity. When it comes to spending, we help them make better decisions by helping them assess whether it is a need or a want. Watching them make thoughtful decisions is rewarding as a parent and reassuring with the hope they will never take the mighty dollar for granted. 4 Things to Teach Your Children Like my grandfather taught my father, it is now our turn to teach our children how to be better stewards of their money. Here is what every parent should be teaching their children.
0 Comments
Leave a Reply. |
About the BlogHi, I’m Lori Capozza Zeind, Archives
April 2023
Categories |