For many young people, retirement is a distant concern. In reality, steps taken now can be crucial to the current generation’s retirement savings.
It is important that high schoolers receive early education so they can have the most effective retirement plan. Saving for retirement early is crucial to maximize the potential of compound interest. Small, consistent contributions to a savings account have the potential to generate substantial long‑term growth.
Retirement may become increasingly challenging for current generations as the cost of living continues to rise. Since 2021, the cost of living has increased by 20%. This trend of upward costs puts the younger generation at risk of long-term financial insecurity. Additionally, 27% of individuals ages 59 or older have no retirement savings, which further foreshadows the inevitable.
Pleasant Valley offers a wide variety of business classes that educate students on finances. One of the most impactful classes is Personal Finance. This course gives students a comprehensive understanding of how real world finances work. Personal Finance informs students how to use credit cards effectively, save for retirement and so much more valuable information.
Because of classes like Personal Finance, students are able to gain valuable knowledge on saving money early. “I know a decent amount about saving for retirement,” said senior Carter Berg. “Roth IRA is one of the most important things to have as you can exponentially grow your money over the years without doing anything except investing.”
Investing early can be a financial head start for young students. “The earlier you save, the less you have to invest. So, if we can get it to students earlier, a little $50 a month goes a long way,” said business teacher Rita Brown.
When talking about financial behavior, one of the most important factors is discipline. Everyone has their own financial hopes and dreams, but those aspirations may never come without consistency and discipline.
Consistency is important for students to have financial success. “Dave Ramsey said it best. He said, ‘formal education and financial literacy is 20% but behavior is 80%’. You can understand the material. You can respect the material but it means nothing if your behavior doesn’t go along with your long-term goals for life,” Brown said.
When young people navigate their way to adulthood, they face the challenge of being financially responsible and saving for retirement. Recognizing the importance of financial literacy, PVHS students are going into the world with brighter futures thanks to experiences in and outside of the school.
