Financial commitments consistently top resolution lists each year, but not every resolution makes sense for every age group. The following are some resolution recommendations categorized by age group with a focus on the life events typically experienced by those in each range.
As Joline Godfrey says in her book, Raising Financially Fit Kids, “The children who become most content as adults learn to use their resources in ways that give them deep satisfaction.” Help your child flex this skill by choosing financial resolutions that are focused on saving for, budgeting around and donating to things that give them a sense of purpose.
Steer them toward resolutions like:
High school is great time to solidify your family’s fiscal values with practical exercises. If you are interested, please ask us about our “Beyond the Piggy Bank” financial tasks.
The majority of younger workers disregard employer-sponsored retirement plans. According to Employee Benefit Research Institute, less than one-fifth of workers age 21 to 24 participated in an employer-based retirement plan in 2013, the most recent year for which figures are available. But those who save early may make more over the long haul. If you consistently save $200 each month beginning at age 20 and earn 8% annually you will have accumulated around $1,000,000 by age 65. If you delay starting the same monthly savings plan until age 30, you will have accumulated around $450,000 by age 65. In this example, you would have contributed about 30% more money than someone who starts saving the same amount at age 30, but end up with around twice as much money. The extra 10 years of compounding returns puts the early saver at an extreme advantage in retirement. Starting early is the best way to plan for a secure retirement.
Resolve to:
Major changes that affect your financial life often happen during your late 20s through your early 40s. The average age to get married in the U.S. is 27.9 (Priceonomics), while the average age for couples going through their first divorce is 30 years old (McKinley Irvin Family Law). During this time, there are home purchases and sales, major promotions at work, relocations, babies and more. Choose resolutions that are about evaluating where you are now and where you want to be later—and actively pursue those goals.
Resolve to:
With retirement on the not-too-distant horizon, now is the time to pay off debt and save for the future as aggressively as possible. Unexpected medical issues can arise during this timeframe, so it’s a good idea to also think about how you’ll prepare for a major medical event. Include a comprehensive evaluation of your financial life in the next meeting with your wealth manager. Consider resolutions that are focused on safeguarding you and your family after you retire.
Resolve to:
Life post-retirement looks different financially than it did when you were employed. Health care costs, reducing taxes and protecting yourself financially should be at the forefront of your annual resolutions.
Resolve to:
No matter your age, it’s a good idea to evaluate your financial plan in the beginning of each year to make sure it’s in line with your personal and financial goals.