According to the latest HSBC (NYSE:HSBC) report, 23% of retirees would rather spend all their savings than leave their children money. Dave Ramsey, host of The Dave Ramsey Show, joined the FOX Business Network’s Mornings with Maria, to discuss the shift away from leaving behind an inheritance.
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“The question begs, do you leave your children money? And I think obviously if your children are misbehaving, then you’d be funding their misbehavior… and so you wouldn’t want to do that. But are they healthy, good, solid adults? If you’re not willing to leave them money then you’re presupposing that money is evil and that somehow you’ve done something wrong to your kids,” he said.
Ramsey shared his thoughts on Boomers’ saving habits and the 2008 financial crisis.
“Personal finance is about 80% behavior. It’s only about 20% head knowledge… A lack of a savings indicates, in some cases, hopelessness… Another reason they don’t save is that there’s no nobility to their life. There’s no maturity to their life. If you were set back in 2008 and you started over at that point… If you stayed with it, you’re going to be fine,” he said.
He also gave tips on saving for retirement.
“Get out of debt and then start an emergency fund of three to six months of expenses and then start pouring everything you can into that retirement account,” he said.