Once upon a time:
- During President Taft’s term, Congress passed the Republican-promised postal savings banks system, providing a secure savings option for the working class, immigrants, and children. Operational as of January 1, 1911, they boasted $3.4 billion in deposits by 1947. Shut down by Congress in 1966, today it’s estimated that 5.6 million of us are “unbanked”—no checking, savings, or money market accounts…
- Local banks’ school-based savings programs thrived in the 1950s, promoting financial responsibility in youngsters. I was among them, starting in 1st grade at Watchung Elementary. Once a week on “Bank Day,” we brought in our deposits, sometimes just a quarter; and it was then recorded and stamped in our bank books by our teacher. Those monies added up, helping turn us into lifelong savers.
Today:
- The total U.S. credit card debt stands at about $1.23 trillion, and could be as high as $1.33 trillion.
- The average debt per cardholder is between $6,523 and $7,719.
- The average debt per household is between $9,326 and $11,097.
Meanwhile, some 42.5 billion have student loans that could take 20 years to pay off.
And, our role model? As of December 3, 2025, the national debt hit $38.40 trillion and rocketing every minute.
In other words, collectively, it seems we are financially illiterate. One glance at the 2025 TIAA Institute-GFLEC P-Fin Index tells the tale:
- U.S. adults correctly answered 49% of basic financial questions.
- GenZers (18-29) averaged 38% correct, the lowest score overall, with 37% correctly answering seven or fewer questions.
- Millennials (29-44) averaged 46% correct.
- GenX (ages 45-60 averaged 51%
- Boomers & older (ages 61+) had the highest average, 55%
Meanwhile, just 30 states currently require a stand-alone personal finance course, but, says AI, “There is strong public support for teaching financial concepts in high school, with most adults indicating they would be better off financially if they had learned the basics earlier.”
Enter the president going a bit old school with his Trump Accounts:
Starting January 1, 2026, $1,000 will be deposited in an account for every child born on that day through December 31, 2028. Moreover, those starter dollars will likely rise with Dell Technologies’ Michael Dell’s $6.6 billion contribution to the program, and other donors who are sure to follow suit.
Plus:
- The only qualifying requirements: U.S. citizenship and a Social Security number.
- Parents can contribute up to $2,500
- State and local governments can make broad contributions.
- The funds will go into low-cost stock index funds and mirror such indexes as the S&P 500.
- Monies cannot be withdrawn until/after the child’s 18th
- The money can also sit in the account until retirement.
- At 59-1/2, early withdrawal penalties disappear, thus becoming a retirement account.
About Trump Accounts, Neal Ringquest, Vice-President of the Retirement Clearinghouse, says, “I’d call it an 18-year head start to retirement.”
For the rest of us, especially those just starting out, a sure bet to follow is the 70-20-10 Money Rule, a simple budgeting guide that divides post-tax dollars into 3 categories:
- 70% living expenses (needs and wants)
- 20% for savings and debt repayment
- 10% for long-term goals, such as retirement & charitable giving.
Then there’s that old mantra that asks, “Do I really need it or just want it?”
Answer wisely and spend accordingly–your kids, too.
~ With thanks and merry everything wishes, Carol
