What does “financially stable” mean to you?

[QueenIsabella]

Won’t hurt them to do a menial job or two either. It teaches kids humility and that they aren’t too good to have to wash a dish or bus a table. Getting paid for a job well done is great experience for anyone, whether it’s at a fast food restaurant or a career position. It starts at school but it continues through entry level jobs then into a life’s work.

Exactly! Every job has value, even low-skill ones, like sweeping the floor. And I've heard from numerous people who, say, spent the summer picking vegetables or hauling boxes, that it encouraged them to do well in school, so they wouldn't have to do it for a lifetime.

My two youngest are both baristas--not a bad skill, they can always keep the wolves from the door. They do it for spending money--both really like having control of their own money. But they're also learning useful skills, from customer service to doing jobs you don't care for. Even, how to deal with a boss who's difficult.

 

[barkley]

Exactly! Every job has value, even low-skill ones, like sweeping the floor. And I've heard from numerous people who, say, spent the summer picking vegetables or hauling boxes, that it encouraged them to do well in school, so they wouldn't have to do it for a lifetime.

My two youngest are both baristas--not a bad skill, they can always keep the wolves from the door. They do it for spending money--both really like having control of their own money. But they're also learning useful skills, from customer service to doing jobs you don't care for. Even, how to deal with a boss who's difficult.

dh attended private schools. the system he attended was primarily boarding schools once you hit high school (9-12th grade). a requirement of that system was that ALL students had to be employed during the academic year. there were on campus jobs and ones arranged around academic hours with nearby buisnesses. everyone was paid at least the minimum wage of the state they were located in and handled exactly like every other employee (taxed, hr rules unchanged...) BUT they were required to turn a set percentage of their pay over to the school to be credited towards their tuition/boarding fees. this was not optional and parents could not pay everything in full so their student could opt out. the reasoning behind this requirement was so that students would develop a work ethic, gain insight into balancing work and other obligations, learn some financial literacy with money they had earned-and have a dog in the fight as far as the cost of their education (with first hand knowledge of the work that went in to pay for it). dh has shared how there were def. preferable jobs that entailed less physical labor and paid a bit more but they tended to be ones that you had to have specific skills to do so it encouraged the students to seek out learning and experiental opportunities if they wanted to advance in their employment. dh said they grumbled about it as students but in hindsight he realizes how valuable it was to him personaly and professionaly.

 

[QueenIsabella]

dh attended private schools. the system he attended was primarily boarding schools once you hit high school (9-12th grade). a requirement of that system was that ALL students had to be employed during the academic year. there were on campus jobs and ones arranged around academic hours with nearby buisnesses. everyone was paid at least the minimum wage of the state they were located in and handled exactly like every other employee (taxed, hr rules unchanged...) BUT they were required to turn a set percentage of their pay over to the school to be credited towards their tuition/boarding fees. this was not optional and parents could not pay everything in full so their student could opt out. the reasoning behind this requirement was so that students would develop a work ethic, gain insight into balancing work and other obligations, learn some financial literacy with money they had earned-and have a dog in the fight as far as the cost of their education (with first hand knowledge of the work that went in to pay for it). dh has shared how there were def. preferable jobs that entailed less physical labor and paid a bit more but they tended to be ones that you had to have specific skills to do so it encouraged the students to seek out learning and experiental opportunities if they wanted to advance in their employment. dh said they grumbled about it as students but in hindsight he realizes how valuable it was to him personaly and professionaly.

Sounds like a good system. We're blessed to have the resources to pay for our kids' college--it helps that the three currently attending are going close and cheap. But, we require them to pay for their books and incidentals. These days, you can save a lot on books, renting, getting the subject matter online, etc. It's up to them if they want a cheap option or not. And of course, they're much more judicious in their spending, when it's their own money.

DS18 whacked a pole while in his brother's car--no biggie, but $2000 to fix. He knows he has to pay for it. No whining, no fuss--he accepts responsibility. On the good side, the repair shop found the replacement part at a junkyard, which saved him a few bucks.

 

[NotUrsula]

I'd say that "financially stable" and "financially secure" are not quite the same thing in my mind.

The first implies that you have a solid steady income, some savings, and perhaps manageable debt, but will be just fine if a major (but not catastrophic) emergency strikes (say, something costing up to about maybe $25K).

"Financially secure" implies that you have no debt at all, plus enough savings stashed away to handle just about any catastrophe that might befall you, including a member of the family becoming fully disabled on a permanent basis.

I'm financially stable. I am debt-free and own my own home free and clear, but my savings isn't yet large enough to carry me indefinately if I cannot work at all. Technically, I'll be eligible for Medicare soon, but I'm going to hold off on collecting my SS until I reach full retirement age. (We still have a 16 yo to educate.)

 

[gmi3804]

My friends were buying motorhomes and boats and burning through their money I bough a home and set out to pay it off.
Joined two pension savings plans.
Enjoying it all now without any serious bills other than occasional fuel and water bill.

Solar on the house charges the cars and no electric bill.
Live below your means.

Don't say to heck with the future, the future says to heck with you.

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

 

[Dive Bar Casanova]

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

I'd say that "financially stable" and "financially secure" are not quite the same thing in my mind.

The first implies that you have a solid steady income, some savings, and perhaps manageable debt, but will be just fine if a major (but not catastrophic) emergency strikes (say, something costing up to about maybe $25K).

"Financially secure" implies that you have no debt at all, plus enough savings stashed away to handle just about any catastrophe that might befall you, including a member of the family becoming fully disabled on a permanent basis.

I'm financially stable. I am debt-free and own my own home free and clear, but my savings isn't yet large enough to carry me indefinately if I cannot work at all. Technically, I'll be eligible for Medicare soon, but I'm going to hold off on collecting my SS until I reach full retirement age. (We still have a 16 yo to educate.)

Wife was planning on waiting for the full Social Security but cancer has her wanting to retire and collect it early in January. The cushion of cash we saved will help that. Early Social Security draw means about $640 less per month.

Remember your Medicare isn't free, it's deducted from your Social Security and an essential PPO medicare supplement is out of ones own pocket. My retirement reimburses us for all that. Wife paid no mind to that benefit over the years but now sees what a big deal and amazing benefit that is.

I walk down to a nice little pub for a drink and watch the Ball game and amazing how many people I meet that didn't plan to retire. They skipped paying or paid little into their Social Security and have very little to live on. Cougars hitting on guys with solid financial lives is pretty common. They can barely afford the room they rent at over age 60. They wait for someone to buy a round of drinks because they are that broke or a happy hour $3 special and nurse it for 2 hours.

Under achievers don't like achievers so one must be selective on who they make company with.

I worked a stressful job and dealt with awful people but reached my financial goal. Ain't rich, but I can enjoy the fruits of my toil.

I'm much older than my wife and when I tap out their's enough assets for her to be the crazy cat, dog and Burro rescue & adoption lady.
"European girls look more for a solid, financially stable guy to marry, USA girls want a tall guy that's "wrong" for them." - Jenny Jones.
To my Swiss wife I'm just an older guy, being tall helps get noticed I guess. She asked me to marry. I was blindsided with that.

We can afford to RV travel and wife has the time to volunteer in a local animal adoption center. She's placed 100 German Shepard's in good homes. Tough standards to qualify to adopt one. Brushing German Shepard number 101 we adopted: :

Three years ago diesel fuel was $2.99 a gallon here, now $6.99! We run that same diesel Disney parks run. Renewable / sustainable made from farm silage that's ultra low emission that was 50 cents a gallon cheaper than fossil fuel. Now, the same price. So we drive less and skip the $8 Big Mac.

 

[dpswift]

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

There is a lot to consider. A lot of changes were made that put many of the current and near to be seniors at risk. When we were bringing up our children in the 90s there were many layoff. People either had to move or find new jobs. Pensions that they were expecting disappeared. 401k savings plans did not start well. You had to be in a job for a year before you could join and then the companies match was in limbo for the next 5 years.

Despite many layoffs my husband did manage to put away a fair amount in a 401k many people our age at or near retirement age have little or nothing put away.

 

[Dive Bar Casanova]

There is a lot to consider. A lot of changes were made that put many of the current and near to be seniors at risk. When we were bringing up our children in the 90s there were many layoff. People either had to move or find new jobs. Pensions that they were expecting disappeared. 401k savings plans did not start well. You had to be in a job for a year before you could join and then the companies match was in limbo for the next 5 years.

Despite many layoffs my husband did manage to put away a fair amount in a 401k many people our age at or near retirement age have little or nothing put away.

Good takes good observation.
Do you remember 7% tax deferred interest paid on pre-taxed pension plan savings? That's gone, so plans aren't producing their projected goal. Credit Union plans paid an additional 1/2% on every dollar invested that was in the plan per year. For every dollar kept in the plan for a year got an additional 1/2% tax deferred.

 

[Dive Bar Casanova]

Financial planing check this out:

Critical speciality nurse shortage and high cost of living here mean't my wife's Hospital had a tough time recruiting RN's.

Romania had a hospital workers slow down and strike over tragically low wages sometime back.
Wife's hospital recruited 5 nurses from there. Good educations. The girls came to the USA, got cost of living reimbursement and high pay, then after 5 years US citizenship.

Easily dovetailed into the tough nursing positions and got up to speed fast.

Very first thing these 24 year old girls did when they came to the USA was wisely buy residential property in Florida and Texas. Then when their 5 year contract was up, they relocated there. 10% less pay but 30% less cost of living and no State income tax. Many hospitals offered 20 year at 60% pension plans at no cost to the employee.

 

[gmi3804]

Very first thing these 24 year old girls did when they came to the USA was wisely buy residential property in Florida and Texas. Then when their 5 year contract was up, they relocated there. 10% less pay but 30% less cost of living and no State income tax. Many hospitals offered 20 year at 60% pension plans at no cost to the employee.

One thing's probable: They weren't "let's buy the Dining Plan just because we don't want to have to think about it while on vacation"-types.

And that's how the rich get richer.

 

[tvguy]

Remember your Medicare isn't free, it's deducted from your Social Security and an essential PPO medicare supplement is out of ones own pocket. My retirement reimburses us for all that. Wife paid no mind to that benefit over the years but now sees what a big deal and amazing benefit that is.

Medicare Part A is free....well...you have been paying for it out of every paycheck since you started working. Part B is $174.70 a month. A top of the line Medigap policy, Prescription, Dental, Vision and hearing adds about $175 a month. For some of us, this is several hundred dollars a month less than our employer group insurance out of pocket was. And in my case, retiring at 64 and using COBRA coverage for a year, it is $500 a month less. Having your retirement reimburse you for premiums is an amazing benefit, not sure how many people have that.
I had a $200,000+ plus surgical procedure last year and my out of pocket was zero. My work coverage would have required I pay 20% of the negotiated rate. No idea what that policy's negotiated rate would have been, but Medicare's was $30,000 and using that figure my out of pocket would have been $6,000!

 

[Dakota731]

Unfortunately many teens don’t understand or are taught what are appropriate workplace boundaries and are put in situations they shouldn’t have to be in. Many young women are sexually harassed by co-workers/supervisors. Or young women are even harassed/stalked by customers.

Can’t shelter them forever. Parents can teach them plus kids learn quickly from experience. I learned by age twelve after babysitting experiences with a pervert dad, then again in a fast food job with predatory managers. It’s hard to believe any kids nowadays haven’t heard about sexual harassment. Sooner or later they have to leave the nest and enter the workplace - at least that should be the goal of parents who are raising independent children.

 

[firefly_ris]

Can’t shelter them forever. Parents can teach them plus kids learn quickly from experience. I learned by age twelve after babysitting experiences with a pervert dad, then again in a fast food job with predatory managers. It’s hard to believe any kids nowadays haven’t heard about sexual harassment. Sooner or later they have to leave the nest and enter the workplace - at least that should be the goal of parents who are raising independent children.

My first job was a waitress in the dining room of a high end retirement home. I learned quickly that some older gentlemen are really just that, lovely gentlemen. Then I learned that some others were, uh, not. I was 14.

 

[crisi]

True, not everyone sets up their will to pass on wealth, and even when they do, things can get messy. But the real value of generational wealth lies in building a financial foundation that spans generations. When it works, it does more than provide money—it offers stability and opportunities, giving the next generation a significant advantage in life. Generational wealth is the best kind of reliable stable wealth.

One definition

Poor people think about today.
Middle class people think about tomorrow and next year, and next decade and retirement.
Wealthy people think in generations.

 

[tguz]

Totally agree. I think about it every time I go to the grocery store -- seems like I can't get out without spending $80-100. I used to spend $50ish, and that's back when my kids were all at home!
When I'm paying, I always think about how people with low-paying jobs, debts and/or small children. For so many people, just paying more isn't an option.

Just as I'm closing in on those discounts!

I don't care for many of their drinks, but I can see how it'd benefit someone who drives around all day. Of course, what they want is for you to buy something else while you're in for a drink.

Totally no. You can never get ahead if you're still paying for yesterday's consumer items.

Yes, I love their Value Duets. I don't mind the reduced choices and "no substitutions" requirement AT ALL. It's a medium-to-large meal for a decent price!

And more likely, the deceased may live longer /spend more -- especially on medical needs -- than expected, leaving little or nothing for the people in that will. Anything you've been promised in a will is speculation.

When I'm older, I fully intend to hand over money to my kids each month /let them put it away.

One of my siblings works in fast food, and they are definitely having trouble keeping staffed. I hear they have to pay their employees double-time for the last hour of the day -- otherwise, the kids'll leave because they don't want to do the difficult, end-of-the-day cleaning.

At the same time, if they're paying $18-20/hour, they'll have to charge so much for the food that no one's going to buy it.

Totally yes, you can be financially independent with a bit of CC debt. I've taken a few months to pay things off before and eaten a few $$'s in charges but my 401k says I am financially independent. You can't make a blanket statement without knowing a persons level of debt.

 

[tguz]

Totally agree. I think about it every time I go to the grocery store -- seems like I can't get out without spending $80-100. I used to spend $50ish, and that's back when my kids were all at home!
When I'm paying, I always think about how people with low-paying jobs, debts and/or small children. For so many people, just paying more isn't an option.

Just as I'm closing in on those discounts!

I don't care for many of their drinks, but I can see how it'd benefit someone who drives around all day. Of course, what they want is for you to buy something else while you're in for a drink.

Totally no. You can never get ahead if you're still paying for yesterday's consumer items.

Yes, I love their Value Duets. I don't mind the reduced choices and "no substitutions" requirement AT ALL. It's a medium-to-large meal for a decent price!

And more likely, the deceased may live longer /spend more -- especially on medical needs -- than expected, leaving little or nothing for the people in that will. Anything you've been promised in a will is speculation.

When I'm older, I fully intend to hand over money to my kids each month /let them put it away.

One of my siblings works in fast food, and they are definitely having trouble keeping staffed. I hear they have to pay their employees double-time for the last hour of the day -- otherwise, the kids'll leave because they don't want to do the difficult, end-of-the-day cleaning.

At the same time, if they're paying $18-20/hour, they'll have to charge so much for the food that no one's going to buy it.

Plus you cherry picked what I said. Why didn't you include that part where I said I do think credit card debt should be minimal?

 

[kuhltiffany]

Someone who is financially independent would have another source of paying for a debt over a few months that didn’t include exorbitant CC interest rates, such as paying back an emergency fund or Line of Credit. They wouldn’t waste money on interest

Totally yes, you can be financially independent with a bit of CC debt. I've taken a few months to pay things off before and eaten a few $$'s in charges but my 401k says I am financially independent. You can't make a blanket statement without knowing a persons level of debt.

 

[tguz]

Someone who is financially independent would have another source of paying for a debt over a few months that didn’t include exorbitant CC interest rates, such as paying back an emergency fund or Line of Credit. They wouldn’t waste money on interest

I guess we differ on what an emergency fund is for. To me, an emergency fund is for expenses if I unexpectedly lost my job or my house burned down and I need money until insurance kicks in. It is not for buying a $1,000 freezer that I can pay off in 3 months and sacrifice maybe $30 in interest fees. But that is just me.

 

[amylevan]

I guess we differ on what an emergency fund is for. To me, an emergency fund is for expenses if I unexpectedly lost my job or my house burned down and I need money until insurance kicks in. It is not for buying a $1,000 freezer that I can pay off in 3 months and sacrifice maybe $30 in interest fees. But that is just me.

If it the freezer died and must be replaced immediately - that’s an emergency. Take the money from your emergency fund and pay it back over the next 3 months. Not an emergency? Then save money for 3 months and then buy the freezer. Delayed gratification is a thing.

Financially independent people should not be paying credit card interest. What a waste of money.

 

[tguz]

If it the freezer died and must be replaced immediately - that’s an emergency. Take the money from your emergency fund and pay it back over the next 3 months. Not an emergency? Then save money for 3 months and then buy the freezer. Delayed gratification is a thing.

Financially independent people should not be paying credit card interest. What a waste of money.

No thanks. My way works for me. As I said before, I don't feel minimal CC debt is bad. In my example, a few dollars of interest doesn't hurt. I pay less in interest, by far, than most spend on drinks and/or tobacco.