BEYOND BUSINESS Teaching Teens Wealth Mastery
In today's challenging financial world, equipping high school students with personal finance tools is essential. Arming young adults with the skills necessary to navigate the monetary challenges they'll face is much like any traditional academic discipline. Here are a few of the tools they’ll need in their repertoire. Building a Robust Financial Foundation Helping students learn fundamental financial skills like budgeting, saving, and investing instills a deep respect for the value of money. Parents and school classes can help them understand credit, loans, and debt management to steer them away from potential financial pitfalls when they later make decisions about loans and credit cards. Practical lessons on tax filing and understanding employee benefits are invaluable, preparing them for adulthood and independence. Sharpening Decision-Making Abilities In personal finance, high schools can play a pivotal role. Students can be encouraged to read the financial news to understand market trends and make more informed financial
decisions. Teaching them how to set realistic financial goals for significant life events, such as attending college or purchasing a vehicle, teaches planning and discipline, key aspects of successful financial management. Fostering a Culture of Financial Accountability Educating students about saving money and sound investment strategies promotes fiscal responsibility. They learn about the long-term benefits of compound interest and regular investing. Teens can build on their financial knowledge as they see the benefits of sound financial decisions. Addressing the Wealth Gap and Adapting to Change Financial literacy is a powerful tool in bridging the wealth gap. Providing all students, no matter their background, with financial knowledge is a step toward leveling the economic playing field. As the global economy evolves, young people with personal finance skills are better prepared to adapt to changing job markets, investment trends, and saving strategies.
Parents and guardians can make a considerable impact in lobbying local school districts to value and include personal finance education in high school and teaching it in their homes. Young people will be able to face life's financial challenges confidently. As we nurture our youth for their future roles, their financial literacy is vital to fostering a society of economically stable and responsible individuals.
Maximizing Your Social Security
A Guide to Timing Your Benefits Every person over age 60 should have a basic understanding of their Social Security benefits before they retire. It constitutes a substantial portion of a retiree’s income but demands minimal time investment. Retirees can enroll as early as age 62 but won’t receive the full benefit amount until years later. Full benefits start at age 67 (for those born in 1960 or later), with additional financial incentives to delay your retirement until 70. If you aren’t sure when to start, you should consider several factors. Have you worked long enough? You only need to work for 10 years to be eligible for Social Security, but you’ll need much more to maximize your benefits. Social Security income depends on the average of your 35 highest earning years — the more you earn, the more you’ll get. If you have worked for less time, those zeros are added to the average, leading to a substantial decrease in your income. Depending on your work history, you may want to delay taking Social Security until you’ve worked a few more years. How long can you wait? Social Security can substantially benefit some people now, whereas others may barely notice it. If an extra check can save you from disaster at 62, take the check. A bird in the hand is worth two in the bush. If you can afford to wait, doing so will be in your best interest.
How’s your health? Everyone faces unique health challenges. Depending on your situation, it may be better to enroll early. Social Security is more of a necessity if you are in poor health. Ultimately, your enrollment date depends on your needs and lifestyle. There are many reasons to delay or start taking benefits early. If you aren’t sure, speak to a CPA. We can help you navigate the complexities of Social Security.
2 ∙ www.Roberts.cpa
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