In Chapter 11 we discuss investment basics and look at accumulating wealth through investing. Obviously that involves an understanding of Principle 8: Risk and Return Go Hand in Hand, and how to budget and start the saving process as described in Chapter 2 – in effect, putting Principle 10: Just Do It! into play.
A recent Pew Research Center Survey looks at the increasingly large gap in economic well-being between the young and old in America and finds it is getting wider. The recent Pew Research Center Report, “The Rising Age Gap in Economic Well-Being: Income, Poverty, Employment” shows that while the household median income for those households headed by Americans younger than 35 has been going down recently, it has been going up for households headed by Americans 65 and over. And from 1967 to 2010, the change in the median household income has risen over 4 times more in percent terms for those 65 and older as opposed to those younger than 35.
The take away point from the Pew Research Center study is that young adults in America are having a very tough time relative to older Americans.
Class Assignment or Assignment:
1. Read through the Pew Research Center Report, “The Rising Age Gap in Economic Well-Being: Income, Poverty, Employment.” What did the report find with respect to poverty and employment of young Americans versus older Americans. Why do you think this trend is taking place? Be prepared to discuss this in class or write a short paper on this.
2. You should now know the challenges you will be facing in the future and the difficulties other young Americans have in getting ahead. Come up with two strategies you feel will help you get ahead in terms of wealth, income, and employment and be prepared to share these with your class.