Joe Lucey

 

“Parental financial socialization” is an ominous-sounding term that basically describes parents who freely and openly discuss money matters with their children. Parents can have a tremendous influence on how children value and manage money, and those values are often carried over into adulthood.

Parents who assist an adult child financially can cause dependency issues, while parents with fewer financial resources to help often find that their children learn more quickly to become financially independent.

Knowing when to start and stop giving children monetary pointers can be tricky. When parents share too much financial information with children who are too young to process the information, it’s called “financial enmeshment.” This can cause children to feel anxiety.

The important takeaway is that how we conduct our financial lives and the way we talk about them in front of our children can impact their lives, even through adulthood. 

In October, Federal Reserve Vice Chairman Stanley Fischer offered remarks concerning the state of the U.S. economy and some reasons for sustained low interest rates. He observed that the real interest rate could be considered the price that balances the economy’s savings reserves with its investment demand.

To explain why interest rates are low, he said the Fed assesses various factors that influence higher savings and reduced investing. According to Fisher, primary forces that have impacted this equilibrium in recent years include:

• A slowed pace of innovation, which reduces opportunities for investment.

• Lower productivity growth, which reduces household consumption and increases the need for savings.

• The “graying” of the population, which is expected to reduce the workforce by about .25 percent in the coming years, furthering the trend for lower productivity and slower labor force growth.

• The increasingly aging population also means that more people are saving for retirement.

• Reduced investment in turn provides companies with less capital to invest in growth, further perpetuating the cycle for less interest in investing.

• Sustained low interest rates and the slow pace of growth abroad means foreign countries offer less appealing investment options as well.

Ultimately, slower productivity growth tends to depress investment and encourage savings, which in turn pushes interest rates lower. The federal funds rate has remained low for quite some time now as the Fed looks for the economy to support its goals for sustainable employment and inflation at a target level of 2 percent.

Fast food is making a push to get healthier — and also more upscale. Fast food joints like McDonald’s and Burger King have already added some healthier options to their menus, while national chains like Panera are gaining market share as the population leans toward healthier food choices.

Panera has been swift to accommodate to changing consumer trends and demands. The café-style chain offers healthy, organic, gluten-free options comprised of deli-type sandwiches, soups, salads and, more recently, pasta dishes. It has eliminated artificial ingredients and sweeteners in its meals.

After its rise in popularity, Panera experienced a new problem: Long lines. In response, the company invested in technology that includes in-store kiosks where consumers can place their order and pay without standing in line. You can even grab a booth and order from your own laptop or tablet. Many of the newer, stand-alone buildings also have a drive-through. The company is also investing to expand its catering presence.

There are currently more than 200,000 fast food restaurants in the U.S., which generated a combined $200 billion in revenue in 2015. The industry employs more than 4 million people, and restaurant franchises added 200,000 jobs last year.