Most 20-Somethings Can’t Answer These 3 Financial Questions. Can You?

[DesiPower]

Damn 1%ers, they are destroying the country.

 

[rcpratt]

These questions might be stupidly easy but the reality is that people under 30 save very little. To be in the top 10% of retirement savings you only need $50k by 30.

FTFY

 

[ghost recon88]

If anyone ever asks me how to start saving for retirement, my answer is max your employer contributions in your 401/403, and then open a Roth IRA. Just met with my financial adviser this week and she said it was scary how many people wait until their mid 30s to start working on retirement stuff

 

[Vdubchaos]

If anyone ever asks me how to start saving for retirement, my answer is max your employer contributions in your 401/403, and then open a Roth IRA. Just met with my financial adviser this week and she said it was scary how many people wait until their mid 30s to start working on retirement stuff

Can it be.....because average American is too busy working their asses off just to sustain/are struggling.

I'm pretty sure "retirement" is pretty low on most people's list.

 

[IHateMyJob2004]

This is scary, and they are the future of America?

(1) Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.

(2) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow: More than $102, exactly $102, or less than $102?

(3) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, would you be able to buy more than, exactly the same as, or less than today with the money in this account?

http://time.com/money/3826475/financial-literacy-month-3-basic-questions-millennials/

1) is tied to the word usually. I'd take 100% Fairfax Financial for life over any mutual fund.

I'd say most of America would have to guess. I don't blame education. I blame parents that don't place expectations on their unwanted children.

 

[s0me0nesmind1]

Can it be.....because average American is too busy working their asses off just to sustain/are struggling.

I'm pretty sure "retirement" is pretty low on most people's list.

No, it's just the average american is too stupid to worry about the future. They are worried about how comfortable their couch is now.

If you can have cable TV, you can contribute more to your retirement. Sorry, but the average american is simply not prepared for what they will need come retirement (medical care, paid off home, etc..)

 

[pete6032]

Can it be.....because average American is too busy working their asses off just to sustain/are struggling.

I'm pretty sure "retirement" is pretty low on most people's list.

I'll be the first to claim, too, that the American middle class is struggling, but some of that I believe is self-imposed. People who make a middle class living seem to think that they deserve a 4 bedroom 2.5 bathroom house, 2 car garage with nice, full-size cars, big TV, lawn service, eating out at work every day, etc. But that's not a middle class lifestyle, that's a rich person lifestyle.

I make a middle class living and about 25 percent of my paycheck goes to retirement investments. I live in a subpar apartment with roommates, take public transit to work, and drive a 15 year old car, but I still find myself feeling financially stretched.

 

[stlc8tr]

BRKA? Really? Berkshire has had a HORRIBLE record. I'll stick with my safe, yet very profitable Vanguard's. Fee's are RIDICULOUSLY low. I think in the last YoY gains were @ 16%

REIT? After the last housing bubble and talks of another? Ugh, even that I am weary of, but I would be willing to put a little in for the sake of diversification.

BRK.A was 27% YoY in 2014, FYI.

The record has been more mixed in recent years but if you purchased back in the day, you're sitting pretty.

(Yeah, I know everyone on ATOT is already a multi-millionaire so what's a few shares of BRK.A? )

 

[JMapleton]

These questions might be stupidly easy but the reality is that people under 30 save very little. To be in the top 10% of retirement savings you only need $50k by 30.

I would almost guarantee you that would put you in the top 1% of 30 year olds.

 

[xeemzor]

I would almost guarantee you that would put you in the top 1% of 30 year olds.

See here for source.

 

[JMapleton]

If people were informed about finance, there might be less outrage against some finance related headlines, and more outrage about things that don't make the headlines.

The mainstream media does this on purpose because hatred for corporations and the wealthy is easy to stir up and it gets readers.

They play on people's ignorance by twisting facts on subjects people are hesitant to investigate further and are quick to judge on. (business and the wealthy are two examples where everyone has an opinion but few know really know anything about)

 

[Sonikku]

This is scary, and they are the future of America?

(1) Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.

(2) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow: More than $102, exactly $102, or less than $102?

(3) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, would you be able to buy more than, exactly the same as, or less than today with the money in this account?

http://time.com/money/3826475/financial-literacy-month-3-basic-questions-millennials/

Most can't answer number 3? Now that really is a crying shame for 20 somethings. It's pretty hard to convince Americans the minimum wage needs to be adjusted every few years when they believe $7.25 an hour has the same buying power in 2015 as it did in 2009. Job Creators have Americans convinced asking for an inflation adjustment is like getting a big raise for doing nothing. Yet the lack of said adjustments means they either need to accept less and less pay each year for the same job or accept longer hours to achieve the same buying power they had half a decade ago for the same labor.

 

[monkeydelmagico]

Job Creators have Americans convinced asking for an inflation adjustment is like getting a big raise for doing nothing. Yet the lack of said adjustments means they either need to accept less and less pay each year for the same job or accept longer hours to achieve the same buying power they had half a decade ago for the same labor.

Whoa now easy big fella. Job Creators have got a handle on this whole Amerika thing just fine, thank you very much. What do you think these low interest rate loans are for? Now get to borrowing and spending instead of trying to tell the big boys how to make less money.

 

[Red Squirrel]

Probably one of the simplest things to do even if you don't know anything about finances is to simply not buy things if you don't have the money or need it. Just because everyone is going out to buy the latest iphone does not mean you have to as well if your current phone is fine.

Today it's also getting harder and harder to save, because cost of living is skyrocketting and salaries stay the same, and unemployment rate keeps going up. So really need to plan for the future and save all the money you can while you can.

 

[ghost recon88]

See here for source.

Dang I'm in the top 1% for my age, $70k at age 26.