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AICPA: Americans 25-34 “Not Financially Prepared”

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I was reading in the January 2007 issue of the Journal of Accountancy this morning (yes, I realize it is May, I’m just that far behind on my reading) and found an interesting write-up of a study of the savings habits of 25-34 year olds. While the AICPA study found that in the last forty years average income for households headed by someone 25 to 34 had increased by nearly a third in 2004 dollars, savings and asset accumulation has not kept up. Interestingly enough, the median real net worth of Americans in this age group fell drastically from $6,788 in 1985 to only $3,746 in 2004. The mean real net worth only increased slightly from $25,115 in 1985 to $26,109 in 2004.

The executive summary published by the AICPA sums it up pretty well,

“The workforce of tomorrow is not financially prepared for the world they will live in.
Many are clearly relying on the solvency of federal programs. Many feel they can wait
until later to worry about the rest of their lives. This generation needs to be encouraged
to be more financially responsible about their future. Saving is not just about retirement.
It is about taking control of life and having the flexibility to deal with the many challenges
and opportunities ahead.”

My message to those of my generation: GET YOUR CRAP TOGETHER! Stop spending every dime you make and then some on material junk and then expect your family or the government to bail you out. I certainly don’t want the government stealing more of my money in the form of taxes to support you later on because you decided to piss your money away today on that new Mercedes you can’t afford or the overpriced designer clothes you had to have. Practice a little bit of self-control, stop worshiping at the altar of material things, and take some responsibility for your future! I’m saving my pennies for my family’s comfort down the road, not yours!

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May 4, 2007 - Posted by | Basics, News/Trends

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