My first choice essay was written by Jonnelle Marte and published in the Washington Post. Marte explored the mistakes people make at every stage of their life when it comes to saving for retirement. Several of the points she made surprised me, since they went against the advice I was used to receiving.
In their 20s, Marte said the biggest mistake people make is to try and pay off their student debt as quickly as possible. I thought this was shocking, why wouldn't you want to get out of debt? Marte argues that by focusing solely on paying off debt, young people lose the "biggest advantage they have when it comes to saving for retirement: time." According to managing director of retirement solutions at the Mutual Fund Store, Scott Holsopple, "If you start saving at 22 you need to save half as much on a yearly basis as you would if you started at 32 to get the same dollar amount." Again, shocking.
Marte continued into the 30s, 40s, 50s, and finally 60s and beyond, but I kept going back to the section on people in their 20s. Taking Economics helped me learn what to expect when it comes to saving for retirement, but I never would have guessed a person could set themselves up for failure so early on. After reading what to be cautious of and tips on how to save a bit of money, I feel that I am better prepared for the future.
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