A High Schools Grad's Financial Checklist

Good advice in the article. I grew up financially illiterate and didn't start learning about money until I got married at age twenty five. My daughter started college at age 17 so we had the legal transition for the age of minority to majority. It wasn't a big deal but was a learning experience. The article lauds the Affordable Care Act in that a child can stay on the parents' health insurance until they are 26 years old. The ACA also still covers preexisting conditions. Odd how the media implies often times the law has been stricken. Not true.

Also good advice concerning HIPPA. Once one turns 18, mom and dad no longer have access to lots of private information as well as decision making authority. That entails powers of attorney and living wills and advance directives among other things. Parental advice and involvement goes into the child's adult years as well. I've been encouraging my son to get with a financial adviser about investing or at least enroll in the Thrift Savings Plan. He says he hasn't had time. I'm also his power of attorney and my wife has access to his bank account to handle affairs while he is away from the flagpole. He also hasn't had time apparently for a relationship that lasts long enough to produce us some more grand kids.

From the article: "Here are two you might suggest asking of a more experienced enlisted person: What benefit have you valued most, and which one do you wish you had known about or started using sooner?"

I'm an experienced enlisted person so I'll answer. The benefit I value most is the GI Bill. I earned two masters degrees using two GI Bills. I took the Montgomery GI Bill down to the last day and the Post-911 to the point where I had to only pay for my last class. My employer pays me for MA plus 30 which is a nice chunk of coin more than if I only had a bachelors. I've also used the VA loan benefit. The lack of a down payment is huge, especially in Northern Virginia. I also did not have to pay the funding fee due to my service related disability rating. And the greatest benefit of course if the money dropped in my bank account monthly, simply for breathing. Oh, also, my wife and I receive world-class health care from Walter Reed.
 
The chart that made an impression on my kids was this:

https://www.daveramsey.com/blog/how-teens-can-become-millionaires/

Invest for ten years, starting NOW, and then stopping makes you more money than waiting until you can afford it and then investing forever. Investing NOW and then adjusting your investments over time as family resources allow will make still more. But don't wait.

EDIT: OK, assuming a 12% return is not entirely fair, but the notion is very real. We went to a couple online calculators to use their own numbers to redraw the picture and it was still pretty powerful.
 
I've always loved those charts that investment companies and advisors put out, while they really drive home the importance of compound interest, they always paint a picture through rose colored glasses that leaves out all the bumps and opportunities along the way. Nobody has to look to far past the last 20 to 30 years to see how erratic the markets have been including the "Lost Decade" in the mid to early 2000's where there was little to no growth. While these charts paint a nice picture of what "Could happen" if one invested early for 10 years, it doesn't take into account the large swings in the markets and the value of dollar cost averaging. In the real world investing over the long term will have advantages not shown in these charts. While I strongly agree that they start as soon as possible like the chart suggests, the greater value will come with investing over the long term. If a person invest the same amount each month over the long term they will be able to take advantage on times when the markets are way down, their investment amount will buy more shares during the down times and grow faster in value as the markets rise giving them more in returns. The person that invests for only 10 years and stops will simply ride the ups and downs without getting any of the benefits.

I apologize, I in no way meant to downplay the importance of starting to invest early and agree with all everyone has said here, it's just that these charts can be so deceiving to young investors that think they can just stop investing after a few years and come out way ahead of others that stay the course.

I did have to chuckle though. 12% annual return for every year, that's just not fair it's a fairy tale.
 
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