Preparing for Your Financial Future

June 26th, 2008 at 02:15pm Larry Messing

Recently, I’ve been reading about Ed McMahon’s trials and tribulations regarding the threatened foreclosure of his mansion. On Larry King, in explaining how he got into the situation, he said that without working he had more money going out than coming in.

Is this really an adequate excuse for an 85-year-old millionaire (or former millionaire). With so many struggling to live on social security how can someone who made millions in his lifetime, not have saved a little bit of it for his retirement?

In JA’s first grade programs, we teach the differences between needs and wants and the purpose of savings. Again, this is a first grade lesson.

Most of us will not become millionaires, but all of us will come to a time when we retire or can no longer work. We must not only prepare ourselves for that day, but also teach our kids the purpose of savings. Ask your children if they want a video game today or a car tomorrow? A car today or college tomorrow? It’s all about the priority of needs and wants.

Entry Filed under: Junior Achievement, Financial literacy