Feb 16, 2016

Question: When Should You Start Saving?

They asked this question of over 1,000 investors over the age of 50 in this survey by American Funds and here is what they said (click on chart to enlarge):

Screen Shot 2016-02-16 at 10.40.22 AM

A few questions to ask students:

  • At what age did most of them start saving?
  • At what age are most recommending that their children or grandchildren start saving?
  • What do you think there is this difference between what they did and what they are recommending?
  • What would be a reason given by those who recommend starting saving after the age of 30 (10% did)?
  • Name at least three reasons that saving at a young age is important.
  • Ask your parents these two questions:
    • When did you start saving?
    • When do you think I should start saving?

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Check out this brief Savings Activity: Create Your Savings Goals

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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