Young People are Becoming Better at Financial Planning
Young adults have traditionally put off saving for retirement since it is decades away. With tight starter salaries, saving can often seem impossible. However, a new trend reveals increased interest in retirement from today’s youth.
According to a recent UC Hastings College of the Law free financial planning event, young attendees were most interested in estate planning than how to survive economic turmoil, The San Francisco Chronicle reported.
Many young adults are reaching out to their parents for advice, but they don’t always take that advice at face value, according to U.S. News and World Report’s Richard Satran. This could be due to the fact that young adults do not believe they will have the same opportunities as their parents did.
Additionally, most young adults don’t believe that tiny changes, like cutting out a cup of coffee every day, can lead to a secure future, explains economist Anthony Webb of The Center for Retirement Research at Boston College. While they may not be taking their parents advice, young adults are saving for their futures—just in a different way.
Nearly half of “Generation Y” does not feel like stocks are a safe investment. However, if you’re approximately 30 years old or younger, you should give investments serious consideration, CNN Money advises. Young adults should aim for an investment balance of 28% in foreign stocks, 20% in bonds, and 52% in U.S. stocks. Doing some research on historical data can also help you become more informed and feel more comfortable about investing.
Young adults may not know it all just yet, but their interest in investing in their future is a promising sign.