Thrifty Kids & Jim Cramer’s Skill
Today’s children might be better savers than their parents, shows a survey by life insurer Northwestern Mutual.
Fifty-four percent of those under 29 in the survey said they would save money until they could afford an item they spotted in the mall.
Only 42 percent of those over 29 would save up, while a larger percentage of the older respondents would buy immediately on credit.
Jim Cramer’s record
Mad Money’s Jim Cramer issues buy and sell recommendations to his audience on each show. Just how good are those recommendations?
Two professors at Northeastern University performed several statistical tests to see if Cramer beat an appropriate benchmark and whether he generated additional return for the risks he takes.
The result? He adds no value, nor does he hurt those who follow his advice. “He’s harmless,” concluded Professor Paul Bolster, who conducted the study with Emery Trahan.
529 plans help
Parents who own 529 plans are the most successful in saving for college, found a survey by the College Savings Foundation.
About two-thirds of those who use the plans have saved more than $5,000 per child, while just 22 percent of parents who save elsewhere had accumulated that amount or more.
It says families should save an average of 5.7 percent of their incomes for college.