Today, one in three adults in the world understands basic financial concepts; however, in America that number is reduced to just three in seven adults with financial literacy. The low percentage of financial literacy in the United States has led the average American to face a variety of financial problems, including an average debt of $ 93,000, minimal retirement savings, and a poor understanding of investing.

Understanding the different financial concepts is essential to closing America’s wealth gap and creating generational wealth; unfortunately, these concepts are not widely taught in American public schools. Bill Reynard, a financial planner with over 30 years of experience, has long recognized the need for greater financial literacy, which led him to open his own financial coaching business, Reynard Financial Coaching. Located in the King of Prussia / Greater Philadelphia area, Reynard Financial Coaching provides clients with a basic understanding of financial topics and a variety of financial services, including debt management assessment, planning and university savings review, tax efficiency overview and budgeting help. Read on to learn how some of Reynard Financial Coaching’s services can help Americans solve their financial difficulties.

University savings review

According to the United States Department of Agriculture, the average cost to raise a child born in the United States in 2015 was estimated at 233,000. Although this report has not been updated since 2017, many experts believe that on According to the Bureau of Labor Statistics database, the average cost to raise a child born in 2021 would be close to $ 267,233. However, it is important to note that these two estimates do not take into account the cost of a college education, which can easily double if the child attends a public or private 4-year-old institution.

It is not unreasonable to assume that the majority of parents in the United States want their children to attend college; However, as the cost of a university education continues to rise, fewer parents believe they can fully fund their child’s higher education. While these fears are not unfounded, financial advisors can provide parents with a list of resources to help them track, manage, and develop their child’s college funds in the years before the child enters the school. university. However, like most investments, it’s important to start putting money aside early. Bill Reynard encourages readers with children to meet with a financial advisor when their child is between 5 and 6 years old and to discuss options for college savings accounts.

By working with a financial advisor, parents can better understand:

• Which education savings plan best meets their educational needs and those of their child (529 vs. Coverdell plans)
• At what age should parents open a college savings account
• Which savings plans are taxable
• What tips and tricks are great ways to put extra funds in education savings accounts

Budgeting assistance

According to a recent Gallup budget poll, only 1 in 3 Americans use some kind of household budget plan. Without a budget plan, Americans are much more likely to rack up credit card debt, have insufficient savings, and struggle with financial goals such as retirement, college savings, and investments. One of the primary jobs of a financial advisor is to provide clients with a basic understanding of financial concepts, including budgeting.

The initial three steps in creating a successful budget are understanding your total financial situation (income, expenses, debt), choosing a budgeting method, and monitoring its success. One of the most popular budgeting methods remains the 50/30/20 rule, which allows individuals to use 50% of their after-tax income for their needs (rent, groceries, household bills), 30% of their income for their needs (restaurants, outings, vacations) and 20% of their income to save and repay their debts. However, while many people can create a budget, it is much more difficult to stick to it. For this reason, many people decide to use a budget plan to stay on track. Two common budgeting plans include:

Envelope Method: The envelope system is a popular budgeting method that requires individuals to physically allocate their income across different expense categories. When a paycheck is received, users of the envelope method separate their paycheck into separate envelopes that represent expense categories such as groceries, rent, and credit card debt, and only use the money in the envelope to purchase items.

Zero-Based Budgeting: The zero-based budgeting method encourages individuals to use every penny of their paycheck. It helps people better understand that every penny has a purpose and to be more mindful of their spending.

Retirement analysis

Recent financial and retirement statistics have shown that a growing number of Americans have little or no retirement savings and no idea how much they need to retire at their ideal age. According to a survey, nearly 30% of all working Americans with access to a defined contribution plan did not participate, while only 40% of Americans calculated how much money they need to retire. In this context, learning how to best plan for retirement and the various options for wealth management are not only valuable financial services, but a necessity for Americans.

No matter what age a client has started saving for retirement, a financial advisor can provide advice on which retirement savings account is best for their client, the right amount of money clients should. save for retirement each month and answer various questions regarding employer contributions. Additionally, a financial advisor can provide answers to clients’ most pressing retirement questions, including:

• How Much Money Can I Spend Each Month After Retirement?
• How can I make sure my money keeps pace with the rising cost of living?
• How do I build a balanced investment portfolio for retirement?
• When should I apply for my employee sponsored 401-k?