Many parents shield their kids from money matters as long as possible to spare them the financial stress. However, this hands-off approach may put your child at a disadvantage when they aren’t prepared to be financially responsible and independent later in life.
Recent data suggests that as many as 22 percent of American high schoolers don’t have basic financial skills to prepare them for the real world.1 If you’re hoping the school system will teach your child basic finances, think again! Only 20 states require high schoolers to take economics, and just 17 require high school courses in financial literacy.2
Fortunately, you can fill in knowledge gaps before they become a more serious issue. Teaching your child the basics of saving and spending will make a world of difference when they get their first job, buy their first car or go to college. You may even get to brush up on your own financial skills in the process!
It can be uncomfortable to plan for a future where you might be limited by old age or illness. However, the chances of such an outcome may be higher than you think. People who are currently 65 years old have nearly a 70 percent chance of needing long-term care at some point in their lives.1
Luckily, you can offset future care costs by a substantial amount if you invest in long-term care insurance.