We’re spending our children’s money. So goes the refrain from people appalled at the government’s deficits. As long as entitlement spending and tax collections continue on their present course, it’s an undeniable truth.
Instead of wringing your hands, do something about it. Make your children so prosperous that they can withstand the Medicare cutbacks and tax increases that lie ahead. Here are ten tactics for boosting the net worth of your offspring.
1 Don’t Overeducate
That master’s degree your son or daughter wants to get may be a bad investment. This heretical thought comes from Laurence Kotlikoff, a Boston University economist who studies earning and consumption patterns. An advanced degree confers a higher salary, but it comes at a high cost, too. It includes tuition, often borrowed, plus a year or more of lost earnings.