Short-term: caterpillar. Long-term: butterfly.
According to a report from T. Rowe Price, both adults and children understand the importance of saving, but there is a tendency to focus on short-term goals, often at the expense of long-term needs. Among the highlights and concerns of The 5th Annual Parents, Kids & Money Survey:
Interestingly, gaining financial security by becoming famous may in some ways be closer to reality for the overwhelming majority of survey respondents. According to data from the Investment Company Institute (ICI) and the Employee Benefit Research Institute (EBRI), the average account balance is in the vicinity of $60,000. Only 7.5% have balances above $200,000, let alone $1,000,000. Even for those employees in their 50's and 60's who have been with their employer for 30+ years, the average balance is only around $200,000, not particularly close to the million dollar threshold.
As suggested in earlier posts, the remedy would appear to lie in recognizing that neither short-term nor long-term savings occur in a vacuum. A good solution will recognize that finding the sweet spot for savings requires factoring in both goals. One without the other would appear to be unrealistic for most individuals and families.
Blog Author - Ken Felsher
With over 25 years of writing, editing, and research experience. I enjoy sharing with my readers my love of working with content on a variety of subjects.
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