Study: Half Of Seniors Lack Money Management Skills
Baby Boomers Cite Lack Of Time For Poor Management
POSTED: 11:07 a.m. EDT May 6, 2004
WASHINGTON -- From time to time, there are surveys showing that many high school students know very little about money matters.
Well, their grandparents don't do much better.
A new AARP study of financial literacy among older Americans describes more than half of those over 65 as "lost" -- meaning they hold few financial assets, such as stocks or mutual funds, and
they lack good money management skills.
The AARP said that as of 2001, those 45 and over were responsible for 52 percent of all consumer spending, up from 47 percent in 1984. Although the age group is an important force in the economy, the report shows they face many obstacles to effective decision-making.
The report also found that today's consumers face a more complex marketplace and more time constraints than any previous generation, often leading to confused decisions. Baby boomers are more likely than their parents to be responsible for investment decisions about their retirement savings through 40l(k).
In a companion poll on 1,900 baby boomers interviewed by phone, more than one-fourth of people in their 40s and 50s admitted to being worse financial managers than their parents. They complained that they don't have the time, that they have too many choices, and that there's too much confusing advice.
Well, their grandparents don't do much better.
A new AARP study of financial literacy among older Americans describes more than half of those over 65 as "lost" -- meaning they hold few financial assets, such as stocks or mutual funds, and
they lack good money management skills.
The AARP said that as of 2001, those 45 and over were responsible for 52 percent of all consumer spending, up from 47 percent in 1984. Although the age group is an important force in the economy, the report shows they face many obstacles to effective decision-making.
The report also found that today's consumers face a more complex marketplace and more time constraints than any previous generation, often leading to confused decisions. Baby boomers are more likely than their parents to be responsible for investment decisions about their retirement savings through 40l(k).
In a companion poll on 1,900 baby boomers interviewed by phone, more than one-fourth of people in their 40s and 50s admitted to being worse financial managers than their parents. They complained that they don't have the time, that they have too many choices, and that there's too much confusing advice.
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