HSFPP Stories of Impact
by Kayla Bousum, Johnston, Iowa
I was using the NEFE materials to teach my class about a Roth IRA. After class one of my students came up to me and explained his situation. His dad had passed away two years prior and left his family with a large amount of life insurance. It was definitely enough to pay for college, so he didn't need to worry about that expense. He wanted help with setting up an IRA. He had received $750 [in gifts] for Christmas and his birthday. Since college was covered, he wanted to start investing for his retirement.
At this point, I knew that he understood the importance of saving early for retirement. I also knew that he understood that an IRA is something that you do on your own instead of through your work. I spoke with his mom, and working together we helped him set up his IRA and make choices for where he wanted his money to be invested.
He knew that he should take more risk when he is young and slowly lower his risk as he nears retirement. He also asked questions about diversifying and then set up an automatic transfer of money from his checking account each month to take advantage of dollar cost averaging. Many students don't take the information I teach them and take action with it right away, but for this student, he did!