Baseball is back - and so is financial optimism
| Published date | 29 March 2024 |
| Author | AARON KATSMAN |
| Publication title | Jerusalem Post, The: Web Edition Articles (Israel) |
We're born again, there's new grass on the field.
A-roundin' third, and headed for home,
It's a brown-eyed handsome man,
Anyone can understand the way I feel.
Ooooh –
Put me in coach, I'm ready to play today
Put me in coach, I'm ready to play today
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Look at me, I can be, Centerfield
John Fogerty, Centerfield
OVER THE last few days, the weather has finally turned warm here in Israel, a sure sign of spring. Another sure sign? Baseball is back and it's "Opening Day." For all of you baseball fans out there, nothing compares to Opening Day. It means a new season where, for a day or two, everyone has an equal chance of winning the World Series. Optimism reigns supreme. Here in Israel with all that we have gone through these last six months, we sure could use a healthy dose of optimism. Forget about the last-place finish last season and focus on this year's potential. It's also a sign that summer is right around the corner.
Reality bites
What does the beginning of the baseball season have to do with your finances? Well within a few weeks, for most teams the optimism fades, reality strikes and it's back to "waiting 'till next year."
A few years ago Charles Schwab surveyed young people's approach to money. The results showed that they are both very optimistic and very unrealistic as to their finances. Carrie Schwab-Pomerantz writes: "While more than 80% of young people surveyed saw their parents experience financial hardship during the recession, 76% believe their financial future will be better. The behavior of this same group isn't so positive. Average savings is a pretty impressive $1,600 but unfortunately, average debt is more than $8,000 – with Millennials saving only 15% more than Gen Z while accruing 169% more debt."
The two stats don't quite compute because creating a secure financial future means managing your money wisely in the present.
A few other misconceptions are also cause for concern. For example, according to the survey, young people expect to retire at age 60 – seven years before they'd be eligible for full Social Security benefits (and ten years before they would get the largest payout). Plus, more than half believe they'll receive an inheritance from their parents, which is increasingly less likely with longer life spans.
Eric Reed of Smart Asset writes, "On average, American households inherit $46,200, according to the Federal Reserve data. But this figure is inflated by top-tier wealth and belies the fact...
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