How do Your Personal Finance Priorities Stack Up?
Baby Boomers, Your Time is Now. How do Your Finances Compare to Your Peers?
CNNMoney.com recently published a quiz designed to test how your financial situation matches up to those of your peers. The following is a series of general questions that addresses situations that affect baby-boomers and workers nearing retirement. Answers to the questions are found at the bottom of the page. Good luck!
1. What percentage of well-to-do boomers presently offer financial support to both a child and an aging parent?
A. 6%
B. 14%
C. 22%
D. 31%
2. Which of the following choices has the most impact on finances for pre-retirees stretching to help their families:
A. A cut back on luxurious items.
B. Less money is being contributed towards a child’s education expense.
C. Less money is being saved for retirement.
D. More money is being used to purchase lottery tickets.
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3. In a recent survey, men were asked to guess as to whether or not they thought their wives thought retirement planning and savings was a priority. 45% of men thought their wives did consider retirement saving a priority. What percentage of wives actually rank retirement as a key goal?
A. 35%
B. 48%
C. 68%
D. 76%
4. What percentage does the average parent pay using income, assets, and borrowing towards a child’s private college tuition and fees?
A. 63%
B. 43%
C. 35%
D. 11%
5. What amount of money did affluent families plan on spending during their summer 2010 vacation on each person who attends?
A. $2,300
B. $1,600
C. $1,100
D. $700
6. Over the past five years, almost 60% of baby-boomers have provided money to either an adult child of their or a grandchild. What is the median amount of money doled out during that time?
A. $9,000
B. $24,200
C. $30,600
D. $57,500
7. When a grandchild asks either grandma or grandpa for money, what is that money most often used towards?
A. General support
B. Special event / memorable date
C. College education
D. Medical expenses / bills
8. The average wedding costs around $28,000. How much of the wedding cost does the bride’s parents typically pay?
A. $28,000
B. $20,000
C. $13,000
D. $8,000
Answers:
1. (D)
Almost one in three people between 50 and 64 years of age are providing support for a child and grandchild, according to a survey conducted by Merrill Lynch. Reportedly, 75% of these baby-boomers are worried that their assets won’t be enough to last through their retirement.
2. (A)
44% of those surveyed by Merrill Lynch say they’ve had to cut back on the finer things in life, while about one in four are putting money aside for their retirement, and 12% are putting less towards a child’s college fund. Many, though the exact figure is not know, are playing the lotto in desperation.
3. (C)
68% of wives are thinking about their retirement, and this is just one more example of how men fail to fully understand their spouses’ money concerns. Other money saving thoughts are for emergencies and paying off debt. Does your spouse think about retirement planning? Check out this pre-retirement checklist to help get your affairs in order.
4. (B)
43% is roughly $16,000 annually, according to a Sallie Mae and Gallup study. Another 19% of private college costs are paid through the student’s income, savings, and education loans. Parents who have children that attend public colleges spend about half this amount, on average $8,500 per year.
5. (B)
According to a report issued by American Express, affluent families intend on spending as much as $1,600 per person while on their 2010 summer vacation. 73% of those surveyed planned on taking a vacation this year, while 44% hadn’t, due to lack of funds saved up.
6. (C)
Believe it or not, baby-boomers have doled out a median amount of $30,600 to an adult child or grandchild in the past five years, according to a recent MetLife Mature Market Institute report. High-end givers reportedly average $59,000.
7. (A)
40% of monetary gifts from grandparents go towards general support, according to MetLife, while education came in second at 26%. The median gift was $3,000 over the past five years.
8. (C)
$13,000 or 46% is the average amount that the bride’s parents will pay towards wedding costs, according to The Knot. On average, the groom’s parents will cough up about 12% of the total cost. The band alone can cost as much as $3,000.
Related Information
Setting Financial Goals
Planning Retirement Goals
Cocooning: The Baby Boomer Future?
Boomers’ Future Went Down The Drain
Baby Boomers Scramble to Reassess Future
Tags: American Express, Baby Boomers, CNNMoney.com, College Spending, Gallup, MetLife, Retirement, Sallie Mae, TheKnot.com
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