Beyond the Bell: 5 Crucial Money Lessons You Wish You Learned in School

Admin • June 16, 2023

We’ve all been there, scratching our heads when faced with real-world money decisions. This is especially true for high-income earners who face uniq ue financial challenges and opportunities.

Unfortunately, when it comes to personal finance, schools often miss out on teaching crucial lessons that can significantly impact your financial success. While schools may touch upon basic financial concepts, several valuable money lessons are frequently overlooked.

Why Financial Literacy Should Be Taught in Schools

Did you know that as of May 2023, only 20 high schools across the country require a personal finance class for graduation? In today’s complex and rapidly changing world, the need for teaching financial literacy has never been more evident. Yet, it remains a glaring gap in our traditional school curriculum. 

Teaching financial literacy in schools is essential because it equips students with the knowledge and skills they need to navigate the intricacies of the financial landscape, make informed decisions, and build a strong foundation for their financial well-being. 

By introducing topics such as budgeting, saving, investing, credit management, and financial planning, schools can empower students to take control of their financial futures and become responsible stewards of their money. 

In an era where financial decisions have far-reaching consequences, providing students with the tools and understanding to manage their finances effectively is practical and vital for their long-term success and financial independence. 

Below we’ll explore five crucial money lessons that aren’t typically taught in school but are essential to understand. 

5 Crucial Money Lessons You Wish You Learned in School

Applying these lessons can help you build a solid financial foundation and maximize your earnings.

1. Mindful Spending and Budgeting

One common trap that high-income earners can fall into is the temptation to increase their spending as their income rises. This phenomenon is known as “ lifestyle inflation .” While it’s natural to want to enjoy the fruits of your labor, it’s essential to be mindful of your spending habits. By adopting a mindful approach to spending, you can prioritize your financial goals and avoid falling into a cycle of perpetual consumption. Focus on aligning your spending with your values and long-term objectives rather than succumbing to societal pressures or the urge to keep up with others.

Having a budget empowers you to save, invest wisely, and avoid unnecessary debt. It’s a lifelong tool that enables financial stability and paves the way for achieving your goals. Creating a budget is like having a roadmap for your financial journey. It will help to ensure you are in control of your finances. Remember, the key to building wealth is not just about earning big, but also about making intentional choices with your money. 

2. Building and Protecting Wealth

Earning a strong income is one thing, but building and protecting your wealth is another. Through investing and building multiple streams of income, you can help protect your hard-earned dollars. 

Investing

Investing is a powerful tool for building wealth, yet it can often be a neglected aspect of personal finance. While it is tempting to focus on earning a high income, understanding the time value of money and starting to invest early is crucial. As a high-income earner, you have a unique opportunity to amass significant wealth through long-term investment strategies.

Take advantage of retirement accounts like 401(k)s, IRAs, or SEP-IRAs, and contribute the maximum amount allowed. Additionally, consider investing in low-cost index funds or diversified portfolios tailored to your risk tolerance and financial goals. At Five Pine Wealth Management , our financial advisors can work with you to create a diversified investment portfolio tailored to your risk tolerance and financial goals. 

Remember, time is your greatest ally in investing. The earlier you start, the more your money can compound and work for you. Compound interest may not be something taught in many schools, but it is vital to understand the magic of compound interest. Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

And remember, investing is a marathon, not a sprint. So lace up those investment shoes and get moving!

Building Multiple Income Streams

A high income is fantastic, but relying solely on one income source can be risky. Renowned investor Warren Buffet cautions that individuals should never rely on a single source of income, yet many people do . Building multiple income streams provides stability and gives you the potential to accelerate your wealth-building journey. 

Having multiple income streams also offers flexibility and freedom in managing your finances. In addition, it allows you to diversify your skills and interests, pursue entrepreneurial ventures, and explore new opportunities, which can lead to a more fulfilling and balanced professional life.

Consider investing in real estate, starting a side business, or generating passive income through investments. Diversifying your income creates a safety net and increases your financial resilience.

Understanding how to accumulate assets wisely and manage risk is essential. Protecting your income requires a proactive approach. Educate yourself on investment strategies, diversification, and risk management techniques. Work with financial advisors or wealth managers to develop a tailored plan that aligns with your long-term financial goals. By taking these steps, you can safeguard your income and maintain financial security, even in the face of unexpected events.

3. Estate Planning and Wealth Transfer

Estate planning is often regarded as a topic for later stages of life. Still, high-income earners should prioritize it early on. You’ll want to ensure the smooth transfer of wealth to future generations while minimizing estate taxes and legal complications. 

Educate yourself on wills, trusts, power of attorney, and healthcare directives. Seek guidance from estate planning professionals to develop a comprehensive plan that aligns with your wishes and safeguards your wealth. By addressing estate planning early, you can protect your assets and leave a lasting legacy.

4. Debt Management

Raise your hand if school taught you about strategic debt utilization and effective debt management. Yeah, I didn’t think so. But don’t worry, you’re not alone. As a high-wage earner, you may have acquired various types of debt over the years. 

High debt levels can lead to stress, limited financial flexibility, and restrict opportunities. If you are experiencing high debt, it’s time to take control. Learn about debt consolidation, refinancing, and interest rate optimization. Develop a plan to pay down high-interest debt while strategically using debt to grow wealth.

It’s time to flip the script and make debt work for you. Debt reduction not only frees up income that can be directed toward savings and investments but also provides a sense of accomplishment and peace of mind.

5. Tax Planning and Optimization

The more money you earn, the more complex your tax situation can become. Understanding tax planning strategies is crucial to maximizing your after-tax income. Educate yourself on legal ways to optimize taxes, such as exploring tax-efficient investments, retirement accounts, charitable contributions, and other deductions. 

Seek the advice of qualified professionals who can help you navigate the intricacies of the tax code. By strategically managing your taxes, you can retain more of your hard-earned money and accelerate your path to financial freedom.

Let Five Pine Wealth Management Help You

These five valuable money lessons should be part of your journey toward financial success. Financial literacy should be a priority for everyone, regardless of income level. Remember, it’s not just about us; it’s about future generations. By advocating for financial literacy in schools, we can equip young minds with the tools they need to navigate the complexities of personal finance. 

So, let’s join forces, spread the word, and empower ourselves and others to make smart money decisions. Together, we can create a financially savvy society where everyone has the opportunity to thrive. Schedule a meeting with Five Pine Wealth Management so we help you make the best decisions to grow and protect your finances. 

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How to Build a Retirement Plan That Works No Matter What the Economy Does

August 14, 2025
We’re all feeling it these days: the underlying feeling of uncertainty about what lies ahead. Each day, we see headlines about inflation, Social Security’s future, or market swings. Unsurprisingly, Gallup tells us that the top three American fears have to do with money: the economy, availability/affordability of healthcare, and inflation. If you’re in your 50s and 60s, these concerns probably hit even closer to home. You’re not just thinking about the economy in general terms. You’re wondering how it will affect your specific retirement plans. Your mind likely turns to: Increasing healthcare costs – can you absorb unexpected costs on a fixed income? Inflation and market volatility – will the value of the dollar diminish your retirement savings? Social Security uncertainty – will it exist when you retire? Having enough saved – will your retirement budget hold up when the time comes? About 1 in 4 Americans over 50 are delaying retirement , and it’s not hard to understand why. With thoughtful planning and the right strategies, you can build confidence in your ability to maintain your lifestyle on a fixed income, regardless of what economic curveballs come your way. 5 Key Strategies to Prepare for Living on a Fixed Income Uncertainty doesn’t have to derail your retirement plans. By addressing these five critical areas, you can build a foundation that allows you to enjoy the retirement you’ve worked toward. 1. Review (And Potentially Adjust) Your Retirement Timeline One of the most powerful tools you have is flexibility with your retirement timeline. While certain ages qualify you for benefits or withdrawals from certain accounts, there’s no concrete age you have to retire at. Traditional retirement at 62 or 65 might not make sense for your unique situation; you should feel free to alter your timeline to make sense for you and your family. Consider Your Social Security Strategy Your Social Security benefits increase each year you delay claiming them beyond your full retirement age, up until age 70. For many people, this creates a meaningful boost to their guaranteed monthly income. If you can afford to wait, this strategy alone can significantly strengthen your fixed-income foundation. Explore Phased Retirement Options Rather than going from full-time work to complete retirement overnight, consider a gradual or phased transition. Many of our clients find success with: Part-time consulting in their field of expertise Freelance work that leverages their skills Small business ventures they've always wanted to try Investment properties that generate passive income This approach not only eases the financial transition but often provides a sense of purpose and engagement during early retirement. 2. Fine-Tune Your Investment Mix and Retirement Income Strategy Adjusting your portfolio is an ongoing responsibility, not a one-time task before retirement. Continue to revisit and rebalance as a proactive part of your retirement plan. Equally important is creating multiple income streams to reduce your reliance on any single source. Diversify Your Retirement Income Sources Think of building several income bridges instead of relying on one massive one. Your retirement income might come from Social Security, traditional retirement accounts (401(k), IRA), Roth accounts for tax-free withdrawals, and taxable investment accounts for flexibility. Each serves a different purpose in your overall strategy. Is Your Portfolio Inflation-Resistant? Cash can feel safe, but inflation quietly erodes its purchasing power over time. If you want an honest look at the hard numbers of inflation, see the Bureau of Labor Statistics CPI Inflation Calculator . For example, we see that $1,000,000 in 2015 has the buying power of $1,380,194 in 2025. You would need an extra (almost) $380,000 to make up for inflation. Inflation is a reality of the economy that everyone deals with, but your investment strategies can mitigate its impact on your net worth. Consider allocating a portion of your portfolio to assets that historically perform well during inflationary periods. Don’t Abandon Growth Too Soon If you're retiring in your early 60s, you could have 20-30 years ahead of you. Being overly conservative with your investments might feel safer in the short term, but it could leave you struggling to maintain your lifestyle later. A balanced approach that includes growth-oriented investments can help ensure your money lasts as long as you do. 3. Reduce Outstanding Debts The Federal Reserve’s most recent Survey of Consumer Finances reports that the average older adult (ages 65 and up) carries between $95,000 and $172,000 in debt. The bulk of those debts is from outstanding mortgage balances, but credit card and medical debts contribute significantly. Prioritize Your Debt Payoff Strategy High-interest debts from credit cards and personal loans can take up a lot of room on a fixed income. Consider whether it makes sense to use some of your current higher income to aggressively pay down these balances before you retire. There are two primary ways of tackling multiple debts: Avalanche: Pay off your balances starting with the highest interest rates. Snowball: Pay off your balances from smallest to largest. Entering retirement debt-free can be a very freeing experience. Consider Your Mortgage Your mortgage situation is more nuanced. Some retirees find comfort in owning their home outright, while others benefit from maintaining their mortgage if it's at a low interest rate, and money can be invested for higher returns. The right choice depends on your specific situation and comfort level. 4. Plan for Healthcare Costs and Insurance Transitions Healthcare expenses are frequently retirees' most underestimated cost. Add in Medicare's maze of coverage options, and it's no wonder many retirees feel unprepared. Planning for these expenses and understanding your options before you need them can prevent costly surprises that strain your fixed income. Understand Your Medicare Options If you're 65 or older: Enroll in Medicare during your Initial Enrollment Period (IEP), which begins 3 months before your 65th birthday and extends 3 months after Consider supplemental coverage options: Medigap (if you choose Original Medicare Parts A and B) Medicare Advantage (Part C) as an alternative to Original Medicare Prescription Drug Coverage (Part D), if not included in your plan If you’re under 65 and retiring, consider: COBRA coverage from your employer allows you to keep your current plan for up to 18 months, but you'll pay the full premium plus administrative fees (typically $400-$700 per person monthly) Your spouse's employer plan (if available and you're eligible) An Affordable Care Act (ACA) marketplace plan Prepare for the end of employer-sponsored insurance coverage about a year in advance to avoid lapses in coverage. Build a Healthcare Reserve According to the 2025 Fidelity Retiree Health Care Cost Estimate , a 65-year-old individual may require approximately $172,500 in after-tax savings to cover health care expenses in retirement. Consider establishing a separate savings account specifically for medical expenses. Health Savings Accounts (HSAs), if you're eligible, offer triple tax advantages and can be particularly valuable for retirement healthcare planning. 5. Create a Flexible Retirement Budget It’s wise to reevaluate where your money is going every month so you can enjoy once-in-a-lifetime retirement opportunities fully. This, combined with an emergency fund, helps avoid lifestyle creep and the stress of unexpected expenses. Plan for the “Retirement Smile” Retirement spending tends to move in a “U” shape: higher spending in early retirement, less in the middle, and back up again towards the end. While your bucket list trips and experiences are significant expenses, they’re often one-and-done. Most people do these things early on in retirement and slow down into a more predictable financial rhythm. Towards the end of retirement, costs often increase again to cover long-term care needs. Organize Your Budget Into Categories Consider dividing your retirement expenses into essential costs (housing, utilities, healthcare), lifestyle expenses (travel, dining, hobbies), and discretionary spending (gifts, major purchases). Cover your essentials with your most reliable income sources like Social Security, while funding lifestyle expenses through portfolio withdrawals that can adjust during market downturns. How Can You Reduce Your Future Cost-of-Living? Consider ways you can capitalize on your existing assets to better position yourself for the future. If you’ve built significant home equity, downsizing or moving to a more affordable city may be a great option, as you’ll benefit from liquidity and reduced costs. Rely on A Trusted Fiduciary Financial Planner If you’re feeling anxious about the future, know this: you’re not stuck doing it on your own. With the help of a fiduciary financial planner, you can not only see if your plan holds up against inflation and economic uncertainties, but they will:  Prioritize tax-efficient retirement withdrawal strategies Strategize Required Minimum Distributions (RMDs) Create a sustainable withdrawal strategy The best thing you can do for a healthy retirement is to leverage the experts. At Five Pine Wealth Management , we create comprehensive financial plans that align with your financial goals and personal values. If you'd like to discuss how these strategies might apply to your specific situation, we're here to help. Email us at info@fivepinewealth.com or call 877.333.1015 to schedule a conversation about your retirement planning needs.

40 and Catching Up: Why This Decade Could Be Your Best for Building Wealth

July 18, 2025
Your 40s arrive with a unique mix of clarity and urgency. You've likely figured out what you want from life, but suddenly retirement no longer feels like a distant concept. If you're looking at your financial situation and feeling behind, you're not alone. Many people in their 40s experience this same wake-up call. The good news is that this decade offers some of the most powerful opportunities to accelerate your wealth-building journey. Think of your 40s as your financial prime time. You're earning more than you ever have, you understand money better than in your 20s and 30s, and you still have 20-25 years to let compound growth work its magic. Instead of dwelling on what you should have done differently, let's focus on what you can do right now to make this decade count. The Reality Check: Where You Stand vs. Where You Want to Be Before exploring strategies, let's acknowledge the elephant in the room. Many financial experts recommend saving three times your annual salary by age 40. If you're reading this and thinking, "I'm nowhere near that," take a deep breath. Life happens. Maybe you started your career later, switched fields, dealt with medical expenses, helped family members, or simply prioritized other goals during your 30s. The key is to start from where you are today, not where you think you should be. Your 40s bring unique advantages: higher earning potential, greater financial discipline, and often more stable life circumstances. Many successful investors didn't hit their stride until their 40s or later. You're not behind; you're just getting started on a more intentional path. Retirement Savings Strategies That Work in Your 40s Your retirement savings strategy in your 40s should differ from someone in their 20s or 30s. You have less time but more resources, which means you need to be both aggressive and smart about your approach. First, maximize your employer's 401(k) match if you haven't already. This is free money, and missing out on it is like leaving cash on the table. Additionally, consider increasing your contribution rate by 1-2% each year, or whenever you receive a raise. This gradual approach makes the adjustment less painful while significantly boosting your long-term savings. Roth conversions become particularly powerful in your 40s. If you expect to be in a higher tax bracket in retirement or if you want to leave tax-free money to heirs, converting some traditional IRA or 401(k) funds to Roth accounts can be a smart move. The key is to do this strategically, perhaps in years when your income is temporarily lower or when you can manage the tax impact. Don't overlook the power of diversification beyond your 401(k). A taxable investment account gives you flexibility and access to your money before age 59½ without penalties. This can be crucial for achieving early retirement goals or covering major expenses that may arise before the traditional retirement age. Catch-Up Retirement Contributions: Start the Habit Now Once you reach 50, you can make catch-up contributions to your retirement accounts, which significantly increases your savings potential. For 2025, this means an additional $7,500 in 401(k) contributions (bringing your total to $31,000). However, you don't have to wait until 50 to think like someone making catch-up contributions. Start now by treating your savings rate as if you're already eligible for these higher limits. If you can save an extra $600 per month ($7,200 annually) starting at 45, you'll have built the habit by the time you're actually eligible for catch-up contributions. Retirement Milestones by Age 40: A New Perspective Traditional retirement milestones can be discouraging if you're starting later or if life hasn’t gone as planned. Instead of focusing on arbitrary multiples of your salary, consider these more practical benchmarks for your 40s: The Emergency Fund Foundation : Before aggressively pursuing retirement savings, ensure you have a solid emergency fund in place. This prevents you from having to tap retirement accounts during tough times. Aim for 3-6 months of expenses, adjusted for your specific situation. The Debt Freedom Focus : High-interest debt can quickly derail retirement plans. If you're carrying credit card debt or other high-interest obligations, addressing these might be more valuable than maximizing retirement contributions beyond your employer match. The Income Replacement Goal : Rather than focusing on net worth multiples, think about what percentage of your current income you're on track to replace in retirement. A good target is 70-80% of your pre-retirement income, but this depends on your lifestyle and retirement plans. The Flexibility Buffer : Your 40s are a great time to build financial flexibility. This means having investments outside of retirement accounts that you can access without penalties, creating multiple income streams, and maintaining career skills that keep you marketable. Insurance: Life and disability insurance coverage should reflect your current income and family needs. Estate Planning : A basic will, power of attorney, and healthcare directive should be in place. Making Your Peak Earning Years Count Your 40s often represent your peak earning years, and how you manage this increased income will significantly impact your financial future. The temptation to inflate your lifestyle with every raise is real, but this decade calls for more strategic thinking. Consider implementing a "pay yourself first" approach where you immediately redirect any income increases to savings and investments. If you get a $5,000 raise, automatically increase your 401(k) contribution by $3,000 and your taxable investment account by $2,000. You'll barely notice the difference in your take-home pay, but you will thank yourself in the future. This is also the time to think seriously about additional income streams. Whether it's consulting in your field, starting a side business, or investing in rental real estate, diversifying your income sources provides security and potential for acceleration. Building Wealth Beyond Retirement Accounts While retirement accounts are crucial, they shouldn't be your only wealth-building tool. Your 40s are an excellent time to diversify your investment approach and build wealth that's accessible before traditional retirement age. Consider opening a taxable investment account if you haven't already done so. This provides flexibility and liquidity while still offering growth potential. Focus on tax-efficient investments, such as index funds, and consider holding dividend-paying stocks or REITs for their income potential. Real estate can be particularly powerful in your 40s. Whether it's paying off your primary residence early, investing in rental properties, or exploring REITs, real estate adds diversification and potential inflation protection to your portfolio. Don’t Forget the “You” Factor We’d be remiss not to mention this: life in your 40s is busy. You might be managing aging parents, teenagers, or a toddler (or all three). You may be helping your partner through a career change or navigating one yourself. It’s a lot. Which is precisely why intentional financial planning matters now more than ever. You don’t need to do it perfectly. You just need a plan that’s rooted in your real life — your values, your vision, and your goals. A good financial advisor can help you prioritize, simplify, and clarify the next best steps, even if you feel like you’ve fallen behind. Ready to Create Your Personal Financial Strategy? Feeling overwhelmed by all the options and strategies available? You don't have to navigate this journey alone. At Five Pine Wealth Management , we specialize in helping individuals and families in their 40s and beyond create comprehensive financial plans that align with their goals and circumstances. Whether you're looking to maximize your retirement savings, explore catch-up strategies, or build a diversified investment portfolio, our team can help you develop a personalized approach tailored to your situation. We work with clients at various stages of their financial journey, from those just getting serious about retirement planning to those with substantial assets seeking to optimize their strategies. Don't let another year pass wondering if you're on the right track. Schedule a conversation with our team to discuss your financial goals and explore how we can help you make the most of your financial prime time.