I received an email earlier today about a new survey that Charles Schwab conducted called Rethinking Retirement (more on this in a follow-up post). On the Rethinking Retirement homepage, there’s a link to take the survey, which I did.
One of the questions towards the end of the survey pertains to parents and children. I’m curious to know how you would answer this question:
Of the following, which are the most important lessons in saving and investing for parents to teach their children? Please select up to two.
A. Live within your means
B. Begin saving at an early age
C. Avoid high interest debt
D. Get sound financial advice from a trustworthy resource
E. Learn how to invest wisely
I had a difficult time picking two answers as ALL OF THEM seem important to me. That said, I chose the first two. My thinking was that if parents can teach their kids to live within their means, they won’t be as likely to run out and use high interest debt like credit cards. The second one was a no-brainer since we all know the power of compounding over long-periods of time. Yes, they need to know how to invest wisely, but I think starting earlier is more important as long as they aren’t just storing their money under a mattress.
It turns out that most of my fellow Generation Xers agreed with me:
I’m curious. How would you answer this question?