Saving money isn’t exactly the most fun topic of conversation. But biting the bullet and getting serious about financial literacy pays in dividends for you and your family. So when we sat down with senior vice president of Charles Schwab & Co., Inc., Carrie Schwab-Pomerantz, CFP at StacksHouse, we had some questions.
Unfortunately, she didn’t give us any get-rich-quick tips, but she did discuss a growing problem in the American financial landscape. A recent report from the U.S. Government Accountability Office says 48 percent of adults over the age of 55 have nothing saved for retirement. On top of that, a new survey found only 40 percent of Americans could cover an unexpected $1,000 expense. Sure, people have families, they want to travel and there’s the never-ending money-eater, Amazon. But with so many folks spread thin, it seems important to iron out financial priorities. Chief among them is which should you save for first, your child’s future or your own?
As a mother herself, Schwab-Pomerantz knows it’s counter-intuitive, but she says we should save for retirement first.
“I was very unpopular when I first said you have to save for retirement over your child’s education. I know it goes against the grain of good parenting,” the Charles Schwab Guide to Finances After Fifty author reasoned. “But think about it: You don’t have a second chance to save for retirement. You cannot get a loan or a scholarship, and you don’t want to be a burden to your children.”