With concerns regarding the state of Social Security and the rising cost of a college education, teenagers may be faced with the question of whether their savings should go toward college or retirement.
Take Our Poll: Should Teens Save for College or Retirement?
As Social Security funds diminish the longer each generation lives, there may not be any funds left for Gen Z. In fact, AARP CEO Jo Ann Jenkins recently spoke about how we need to rethink retirement altogether. One astonishing note in her argument was that the first person to live to be 150 years old may have already been born.
Then there is the growing question of whether or not college is a necessary component to finding a fulfilling — and well-paying — job as the cost of higher education grows exponentially. The answer more and more leans toward no.
Throw in how much more fiscally savvy Gen Z is than previous generations at the same age. In fact, an April study from the financial institution Step showed that 22% of current teens see fiscal independence tied to “longer-term financial goals.” Plus, through social media, they are learning about investing in non-traditional avenues such as cryptocurrency.
To that end, as teenagers start their own savings or investing accounts that would have traditionally been for college expenses — would it be better for them in the long run to save for retirement instead? Weigh in on our anonymous poll.
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Last updated: June 29, 2021