In an era of rising prices — and a possible looming recession — staying on top of your finances is as important as it’s ever been.
Recently, the Transamerica Center for Retirement Studies published its 23rd annual retirement survey of workers, which this year was titled “Stepping Into the Future: Employers, Workers, and the Multigenerational Workforce.”
Transamerica asked more than 10,000 adults surveyed to list their top priorities in 2023. Following are their answers.
Paying long-term care expenses
Respondents who said this is a financial priority right now: 9%
The coronavirus pandemic pushed many of us to think about our health and mortality. Part of getting wiser about the future means facing hard realities — including the fact that someday we may need to pay for very expensive long-term care.
If you are on the fence about making this a financial priority, check out “Should I Buy Long-Term Care Insurance?”
Supporting parents
Respondents who said this is a financial priority right now: 13%
When you were young, Mom and Dad took care of you. Now, it is your turn.
More than 1 in 10 respondents said caring for aging parents is a financial priority these days.
Contributing to an education fund
Respondents who said this is a financial priority right now: 17%
College is brutally expensive. And — as with retirement — the longer you wait to save, the steeper the climb.
If contributing to a child’s college education is a top priority, now is the time to start saving. With any luck, maybe your child will choose one of the “15 College Majors That Pretty Much Guarantee a High-Paying Job.”
Creating an inheritance or financial legacy
Respondents who said this is a financial priority right now: 17%
At some point in life, making a buck gives way to leaving a legacy. Whether it is our children, grandchildren or favorite cause, most of us would like to ensure that some part of this world is better off after we go.
A good estate plan is essential to making such dreams come to fruition, so make sure you have critical documents in order sooner rather than later.
Paying health care expenses
Respondents who said this is a financial priority right now: 22%
Sometimes, it feels like the three certainties of life are death, taxes and ever-rising health care costs. Even in the wake of 2010’s health insurance reform, expenses have continued to rise for many families.
So it’s no surprise to find that saving for health care expenses is a priority for many Americans. One of the best ways to prepare for future health care costs is to open a health savings account, if you are eligible. We detail the many benefits of HSAs in “21 Surprising Things You Can Pay for With an HSA.”
Supporting children
Respondents who said this is a financial priority right now: 32%
A child can drain your wallet like nothing else. And while most of us believe it is money well-spent — a bargain, actually, when we consider how much we love our kids — such spending still puts a strain on our budget.
If providing for your children is hampering your ability to make ends meet, it might be time to create a budget. Money Talks News partner YNAB (You Need A Budget) makes the process painless — and, dare we say it, possibly even a little fun.
Just getting by to cover basic living expenses
Respondents who said this is a financial priority right now: 32%
Anyone who looks at the bottom line on their grocery receipt knows inflation is making it harder to simply get by.
When prices soar, saving is never easy. But that doesn’t mean it’s impossible. If you are struggling to get by, cutting your costs can make a world of difference.
Building emergency savings
Respondents who said this is a financial priority right now: 42%
You never know when a rainy day will arrive. If you didn’t understand that before the pandemic and today’s runaway inflation, you certainly realize it now.
The time to prepare for an emergency is long before it happens, and building a rainy-day fund is an essential part of anyone’s financial peace of mind. If you don’t already have a financial safety net, check out “9 Tips for Starting an Emergency Fund Today.”
Saving for retirement
Respondents who said this is a financial priority right now: 57%
Americans are not the world’s greatest savers. After all, it’s easy to put off saving when steady paychecks are rolling in. But at some point — either because you want to or because you’re forced to — your days of working will end.
Will you have enough money saved to survive? Not if you don’t start saving well before retirement. To get started, check out “The 17 Best Retirement Investments to Achieve Your Financial Goals.”
Paying off debt
Respondents who said this is a financial priority right now: 59%
If there is one cardinal rule of good financial behavior, it is this: Avoid unnecessary debt.
Some people manage to steer clear of red ink their entire lives. But for most of us, falling into debt is a rite of passage. Once we realize how much debt hurts us, we often are desperate to climb out of the financial hole.
While paying off debts is rarely easy, it’s always rewarding. Fortunately, there are plenty of tools available to help reach this goal.
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