Don’t wait to teach kids about retirement
Retirement is a topic and a mindset our culture tends to reserve for those who are perceived as old enough for it. You know, people with grandchildren, no mortgage payments and a subscription to AARP. The thinking goes, once you meet those standards, then you can start planning for retirement. Why waste today on a faraway goal, right? Well, you might want to think again.
There’s a teacher in Washington state who holds a very different view. Her name is Ms. Allison McFadden, and she teaches kids about their personal finances, so they’ll be well equipped for a future retirement.
“It will be much easier for them than delaying important decisions until the deadline is near,” she says, adding “the theme for the school year is always ‘Planning for Your Future Self.’”
Allison has spent the past 42 years teaching business and personal finance to kids at Olympia’s Capital High School. She earned her degrees at the University of Washington (Business Education) and St. Martin’s University (Masters, Computers in Education). But her parents taught her the basics when she was just a kid herself.
She decided to blend her business and education disciplines, which led her to teaching. “If I had stayed in just the business side then I probably would have ended up in an accounting or finance pathway somewhere. I also considered going into real estate but with kids, teaching fit our lifestyle better.” Allison is married and has two children and four grandchildren. “They’re all local so I get to spend a lot of time with them,” she says.
Her classes emphasize that decisions made today impact what you can do tomorrow. Multiple topics related to personal finances include saving, budgeting, credit, insurance, taxes and investing. “Retirement is woven into every unit and then we end the year with a specific retirement unit,” she says.
The class is an elective, so most students take it willingly. Many have even said that personal finance should be a graduation requirement.*
And the feedback after graduation has been positive. Lots of students have checked in with their mentor. “They’ve said how glad they were that they had a foundation of knowledge to be able to make decisions on their own,” says Allison
Retirement advice from a teacher who knows
Most of us probably haven’t been lucky enough to have a teacher like Ms. McFadden in high school. But that’s ok – she has some advice and resources for us so we can start planning if we haven’t already:
- Everyone focuses on the wealth accumulation phase, but the wealth distribution phase is just as important! And, hopefully, just as long.
- Don’t leave it to the last minute to start working on it. Create a plan that includes minimizing taxes and maximizing gain while considering your risk tolerance level; you want to be confident that you won’t outlive your money when you make the decision to retire.
- There are a lot of factors to take into account and there isn’t a “one-size-fits-all” strategy. Also, it’s a lot of work to quit work.
But that’s not all! Allison uses the DRS website to check her plan information. She also watches the videos and follows along with the Retirement Planning Checklist.
And then there’s an array of other non-DRS resources, including books and other websites she refers to. “I might already know the information, but then someone explains it in a different way that makes me re-evaluate how it applies to me,” she says. “I use a lot of resources like books and websites and listen to finance podcasts daily.”
So what will Allison do in retirement?
“We built a house about five years ago and still have a to-do list to get to the ‘maintenance’ stage. My grandkids are all involved in sports and activities so my calendar is pretty full. I’m going to enjoy having more ‘me’ time as well.”
Congratulations on your upcoming retirement, Ms. McFadden. Well done! Well done indeed!
*KREM 2 News featured Ms. McFadden along with a bill that was introduced in Washington state to make personal finances a requirement for high school graduation.
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