Financial milestones present amazing opportunities to get young people to pay attention. I often get asked by parents about how they can engage their children when it comes to money. Milestones present these opportunities:

• On trips to the supermarket...let's make a shopping list, compare prices (brand vs. generic) and discuss all the traps that have been set (great video from PBS 2 Cents about this)
• Opening that first bank account...review the fee schedule for the account, described differences between checking and savings accounts and discuss overdraft protection
• Before you hand over the keys to the family car...review the auto insurance policy with them as well as the operating costs of an auto
• On the first day on the summer job...let's review the W-4 and how we might want to split up that paycheck between savings and checking
• At end of the summer after the first job...let's talk about Roth IRAs and investing in index funds

The next question they often ask is when, as in when should these milestones be hit? I thought this question of timing would be a great discussion prompt for your students as it will tell you lots about their dreams, ambitions and confidence in hitting these life markers. Here's what Bankrate found out from surveying 1,000 people of all ages about specific financial milestones: 

Some interesting factoids from the article:

• Median age for first-time homebuyers is....32 years old (or 4 years later than those who responded to survey)
• No surprise here that older respondents in the survey targeted a higher age for retirement than the Millennials: "But half of baby boomers think it’s best to retire at age 65 or older. Nearly 1 in 5 (17 percent) Americans ages 73 and older say you should wait until you’re at least 70 to retire."
• Millennials think younger is better when it comes to credit cards but many may not be aware that they can't get a credit card until they are 21 without a parent co-signing or proof of income. 

This question could be used as a jumping off point for creating the link between desires (I want to buy a house at 28 or I want to retire by the time I"m 60) and plans (how much will you need to save monthly to achieve your goal of buying a house at 28? or retiring by 60?). 

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Additional resource: Post on Bogleheads forum with people sharing their financial milestones. 

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How about retiring at 31? Have your students listen to this NGPF podcast with Kristy Shen and Bryce Leung to hear how they did it and learn about money hacks they can implement in their lives. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.