Dan Kadlec’s column this week on the end of the “myRA” retirement opportunity got me thinking. Kadlec suggests that the demise of the program is likely due to a lack of financial education. I agree – but I think there is more to it than that. I suspect this is human nature at play. Think about how hard it is to get people to enroll in their 401(k) with a match and invested in real growth options.
A recent British study found that “most children of seven knew how to recognize the value of money and to count it out, understand that money can be exchanged for goods, as well as what it meant to earn money and have an income. They could also plan ahead with money and delay a decision until later, and they understand that some choices are irreversible.” It also found that “early experiences provided by parents, caregivers and teachers which support children in learning how to plan ahead, in being reflective in their thinking and in being able to regulate their emotions, can make a huge difference in promoting beneficial financial behavior.”
Told ya so!
“Money Habits are ‘Formed by Age 7′” – The Telegraph
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