BOSTON (TheStreet) -- Carrie Schwab-Pomerantz, president of the Charles Schwab
Through speaking engagements and a Q&A column she writes for the firm's website, Schwab-Pomerantz is on a self-defined mission is to improve financial literacy and money management. As she sees it, those efforts need to be focused on families as a unit. Kids, parents and grandparents are increasingly dependent upon each other financially, yet seldom talk about money issues, sharing neither insight nor concerns.
|Carrie Schwab-Pomerantz, president of the Charles Schwab Foundation and senior vice president of Schwab Community Services, is on a mission to promote family-based financial literacy.|
Schwab-Pomerantz spoke to TheStreet from AARP's Orlando@50, an event attended by nearly 25,000 people. Her talk was titled Straight Talk: A Conversation About Families and Money, and she shared her thoughts on that topic.The economic uncertainty of the past two years appears to have made people more serious about their money and more frugal. Is this a sea change, or just a temporary dose of reality and we'll all eventually revert to our old ways?
Schwab-Pomerantz: If you had asked me that a year ago, I would have told you, and probably wouldn't have wanted to be quoted, that we are going to forget about it. We tend to be an optimistic country and we've always overcome issues like this and come out ahead. It is in our DNA as a culture. But I do think the economy hit us really hard and deep. There will be ongoing after-effects.
Last year, we spoke to parents who have 20-something children as well as an elderly parent in their life. They said they feel a great deal of pressure right now between their own retirement and their kids' economic well-being. Most, or 80%, said they are concerned about their retirement and 41% said they are helping their kids financially.
So we asked these parents why they felt they were so many of them had to help the next generation, these kids who are supposed to be on their own by now. The top reasons were college debt and unemployment. They also brought up reasons, however, that really were the