THE PROBLEM – INTERGENERATIONAL POVERTY CYCLE IS HERE
We are headed for a crisis! Perhaps the largest inter-generational poverty cycle is about to strike.
First – children with disabilities as they become adults and will most likely miss the new job/skill cycle. Their parents would have never perhaps planned how to keep wealth for them or their children because of the COVID crisis. The safety net offered by social security will soon be gone with the $Trillions of welfare. This will bankrupt the entire system ( hopefully not ), but those dependent fully on social security checks will go through the worse times of their lives in the future if parents don’t take action now.
The Second being the student debt cycle. Yes, doesn’t matter how meritorious the student is – college will be expensive, much more than it is today. Parent’s will either starve their own retirement to have their children go through college, and yet have debt that will require 10+ years to pay off. The student will delay their entire growth cycle just because they will slave off years to pay the debt off if their parents don’t partially fund it.
Financial Literacy and Planning is the only way. Understanding, which financial vehicle can stop that cycle is the only key. There is no escape. We all need to build the education and investment strategy now when the children are young. Money is then a function of time.