Mourning the death of the inheritance

Just read an interesting article at Your Money from the New York Times.  Here’s the full article link.

Essentially, it suggests that older americans are spending more of their savings and inheritances are dwindling.  Here’s a few reasons why that may be happening.

- With the economy in an all but declared recession, seniors are choosing (or perhaps more out of necessity) to help their children with their expenses even when the children are adults.  Seniors can disguise it as helping pay for their grandkids tuition, sports activities, and maybe clothes, but the fact remains that the money could have stayed in the bank. 

- Seniors are spending more because they are living longer.  Rising health care costs are eating away at the nestegg.  Medicare and social security benefits are being reduced, forcing more money to come out of pocket.

- Seniors are healthier longer and having more fun.  Spending money on travel, dining out, and other fun activities are being enjoyed for a longer period of time than ever before. 

It makes you think, as a parent.  What will I leave behind for my children?  It might not be the inheritance that fill bank accounts.  For my wife and I, it’s more important for our kids to learn how to make, save, and give back money.  Sure, the inheritance check is important, but that can be spent and it is gone.  But the knowledge is sharpened with each use.