It can be hard to imagine events in the near future, let alone 30 years from now, and many people find it difficult to sacrifice things today for that uncertain future.  Typically, there are three variables that strongly influence the ability to save for those people between the ages of 35 and 45 – age, children and income.

Many Americans in this age group recognize the value of planning.  Most people nowadays, (under age 48) are still consumed by other priorities, including debt reduction and managing current expenses.  So, what will happen to these Americans that are still struggling?  Well, what has always happened in the past for every generation before us?

Many will look to how their parents have fared over the years and model their views toward budgeting and saving based on their parent’s behavior.  This is a natural occurrence.  Saving and planning habits are usually always influenced by their parents, either by a desire to avoid making the same mistakes or by wanting to create the same saving habits.  While many people think that the school system should do a better job in teaching our children about personal finances it is nonetheless still seen to be a parental responsibility.  Whether your children are young or now adults with their own children, we as parents play a role in teaching our kids the basics of money management skills and should encourage them to develop good budgeting and saving habits.

Christine’s Tip:

Parents must remember that their own financial behaviors have an immense influence on their children.  Being a good role model allows our children to develop healthy financial routines.  In the end, however, our children will need to take charge of their own retirement on their own terms.  We as parents should remind them that the decisions that they make before retirement will affect their lifestyles for a period that could potentially last longer than their entire working careers.  Remind them that it is never too late to start planning and saving.  They will listen to you.