Baby Boomers U. S. (The Blog)

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Common Baby Boomer Money Mistakes You Should Avoid Posted: 08 Jan 2012 02:48 AM PST This is a Guest Post by Daniela Baker of CreditDonkey. If you would like to Guest Post for Baby Boomers US, check out our Guest Post for Us page. The U.S. Census Bureau pegged those born between January 1st, 1946 and December 31st, 1964 as the baby boomer generation. For a couple of decades after World War II, the United States entered a period of peace and prosperity that many say has never been equaled even until today. This period resulted in one of the biggest population explosions mankind has ever witnessed – hence the name baby boom. Partly due to its size, this generation is one of the most influential when it comes to economic, social, and cultural matters. Whatever happens to this generation, people are bound to take notice. We're on the verge of a groundbreaking development – that is, the baby boomers are getting ready to retire. The oldest of the generation are reaching this age and already we are seeing major changes. There are money mistakes that are being made by baby boomers and if we fail to take note of them, we might commit them in the future. Read on as we mention the biggest financial errors and possible solutions to them. Having grown up in a period of affluence, many baby boomers failed to prepare for the future. Yes, we are hearing about the huge market that a whole generation of retirees are opening up for cars, vacations, and other luxury items, but there is a sad side to this story. We are also seeing people being forced to continue working in their 70's and even 80's because they have nothing to fall back on. No savings, no properties, no investment, and no pensions. Social security can only do so much and for some, it's not enough to get them by. Speaking of those who can afford to spend big, they should still consider toning it down. It may come as a surprise, but baby boomers comprise a large chunk of the tech market. A study revealed that baby boomers spent an average of $850 for their home computer. This figure is higher by $50 compared to what other age groups have spent for theirs. Also notable is the fact that people aged 50 and older spent $87 billion on cars in 2009. This figure is significantly higher than that spent by those under 50 which only amounted to $70 billion. Now what does all this spending mean? For starters, retirees are cashing in on their savings and retirement funds much too quickly. With people living longer and leading more active lives well into old age, running out of funds and having to depend on social security could become a problem. Those accustomed to a lavish lifestyle could suddenly find themselves “poor” and unable to afford the lifestyle they want. This could introduce unwanted stress into what should be a time for relaxation. Many simply underestimated the cost of health care and are shocked to find out that insurance and social security are not enough. Visit NIHSeniorHealth.gov for health and wellness tips, ranging from exercise stories to detailed health topics, all for older adults. A big part of the billions spent on cars are not for personal use. Instead, doting parents and grandparents are buying cars as gifts. The baby boomer generation are notorious for coddling the young. This perpetuates a cycle of entitlement that fails to teach kids the value of hard work. Life lessons that a child can take with himself or herself well into adulthood are far better than material things. Depriving them of the chance to learn something valuable is wrong. But perhaps the biggest mistake many baby boomers made is failing to adapt to change. Again stemming from attitudes formed during more stable times, many retirement-age people were content with skill sets acquired decades ago. This proved catastrophic as the demands of the workforce – along with the state of the economy – changed and many lost their jobs. Now, with dwindling savings and missed credit card payments, many are forced to cash in their social security benefits too soon. This forces them to use up what's supposed to last them the rest of their lifetimes. This move in desperation introduces more problems than it solves. Perhaps it's too late for some baby boomers to undo decades of bad financial decisions, but there's still hope for some. Especially for those on the tail end of the baby boom, there's still enough time to change your financial habits and learn from the mistakes of others before you. Learning how to adapt should be one of your priorities. Also, changing into a mindset that's geared for the long term would greatly help. About the Author: Daniela Baker is a writer at CreditDonkey, where she helps consumers find best credit card deals and avoid money mistakes. © Baby Boomers US Blog If you are reading this anywhere other than our RSS Feed Please notify us at blog.boomersus@gmail.com You may also want to join the Baby Boomers US Forum for conversations by Baby Boomers about topics important to Baby Boomers!

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