Author: Vawn Himmelsbach

Would you choose to live in a prison? You might — if it had been converted into a community of well-designed apartments with a club house, swimming pool, green spaces, restaurants, retail shops and even a preschool.

That’s exactly what was done to an old prison in Lorton, Virginia.

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“We really felt that we were liberating these buildings from its dark past, and for that reason we thought Liberty was a good name for the project,” David Vos, a development project manager with real estate developer The Alexander Company, told CNBC Make It.

From abandoned prison to designer apartments

The Lorton Reformatory prison complex, originally commissioned by Theodore Roosevelt, was built in 1910 and shuttered in 2001. In 2002, Fairfax County bought the 2,324-acre campus for $4.2 million.

In 2008, The Alexander Company — which specializes in urban infill development and historic preservation — partnered with the county and Elm Street Development to help convert the campus, with renovations taking place from 2015 to 2017.

The company spent $64 million converting 207,000 square feet into the Liberty Crest Apartments. Rent for the 165 apartments ranges from $1,372 and $2,700 per month. For comparison, the average rent for all property types in Virginia is $1,700 per month.

Forty-four of the units are set aside for people earning 50% of the median household income of $136,719 for Lorton, according to CNBC Make It. These units were fully leased within a couple of months and have been at full occupancy since.

The Lorton Reformatory was a Progressive Era prison, so it’s architecturally interesting and laid out well for apartments, with plenty of windows providing lots of natural light and ventilation.

The original dining room has been turned into a club house with a pool table and shuffleboard table, while the prison ball field has been converted to a central green for residents. There’s also a fitness center, yoga room, swimming pool and two playground areas, along with retail shops and restaurants.

Plus, there’s still room for development. A few penitentiary buildings on the complex are slated to become commercial spaces and the power plant is being converted into 10 additional apartments.

The developers, believing we can learn from our past, have kept some signage from the original prison intact as a reminder of what the buildings once were.

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The economic and environmental promise of adaptive reuse

The Liberty Crest Apartments are a prime example of adaptive reuse — when existing assets in a built area are repurposed for new uses. This can be an environmentally friendly way to develop needed spaces such as affordable housing.

According to The World Economic Forum (WEF), “cities are turning to adaptive reuse as a powerful strategy to reduce waste, cut emissions and enhance circular economy principles in the built environment.”

Repurposing an existing building emits 50% to 75% less carbon than building new, according to WEF, and the process itself can be efficient — up to 90% of materials can be salvaged and diverted from landfills when buildings are repurposed rather than demolished. By saving the expense of demolition and new construction, repurposing can result in cost savings of 12% to 15%.

Communities also benefit from adaptive reuse because it helps to preserve culture and architecture while creating unique, distinctive spaces to work and live. It can also be a catalyst for urban renewal and innovation.

For example, where the Lorton prison complex was once an empty, decaying structure, there’s now attractive architecture, affordable housing and community spaces.

Adaptive reuse projects can also boost property values in the surrounding community through neighborhood revitalization. Jobs are created during the project and, longer term, for ongoing maintenance and administration of the new facility — as well as through any commercial spaces that may be part of the development.

However, it often means overcoming community and regulatory hurdles. In the case of Lorton Reformatory, investors initially expressed concern that the development was in a metro area without mass transit and that mixed-income housing might turn off prospective developers. Eventually, an investor did see the potential — and the result is Liberty Crest Apartments.

Despite these types of hurdles, adaptive reuse projects represent a huge opportunity for developers and communities alike. CNBC Make It reports that 188 prison facilities were shut down in the U.S. between 2000 and 2022, and in at least nine states conversions of these facilities are either underway or have been completed.

After all, why would communities and developers want to keep that much potential locked up?

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Last year, Ted got hit with a surprise $2,700 bill after an ER visit. When he missed a follow-up call from a collections agency, the bill ballooned to nearly $3,000.

Now, he’s getting nonstop calls from debt collectors and doesn’t know what to do.

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Ted, 53, is one of millions of Americans dealing with medical debt. The most recent Census Bureau Survey of Income and Program Participation (SIPP) found that 15% of households owed medical debt in 2021.

A 2021 Kaiser Family Foundation (KFF) poll, which used a broader definition of medical debt that included credit card charges and money owed to family members, found that 41% of American adults carried some form of medical debt.

KFF’s analysis of the SIPP report showed that about 6% of U.S. adults — 14 million people — owe more than $1,000. Around 2% (6 million people) owe more than $5,000, and 1% (3 million people) owe more than $10,000 in medical debt.

Know your rights

Ted’s first step is to make sure that his bill is legal. He’s insured through work, so under the No Surprises Act, he shouldn’t be charged more for an out-of-network ER visit than he would be for an in-network one.

While that may not apply to Ted’s case specifically, the law also protects against surprise bills for non-emergency, out-of-network care related to certain in-network visits and air ambulance services. If you’re unsure about a bill, you can call the No Surprises Help Desk run by the Centers for Medicare & Medicaid Services.

If you don’t use insurance — either because you don’t have any or choose not to — and you book your appointment at least three business days in advance, providers are typically required to give you a written good-faith estimate of expected charges. This should include facility and hospital fees.

If the provider doesn’t automatically give you the estimate, ask for it. If your care involves multiple providers, you’ll need separate estimates from each one.

If your final bill is $400 or more above the estimate, you can dispute it through the Centers for Medicare & Medicaid Services. While the dispute is being reviewed, the provider can’t initiate collections — and if the bill has already been sent to collections, that process must be paused during the dispute.

If a debt collector contacts you about an out-of-network or surprise medical bill, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) online or by calling 1-855-411-2372.

You should also contact the CFPB if a medical charge appears on your credit report. As of July 1, 2022, paid medical collection debt and debt under $500 shouldn’t show up on credit reports. Unpaid medical debt must be at least a year old before it appears.

Debt collectors also have specific rules about how and when they can contact you, outlined in the CFPB’s Debt Collection Rule.

Ted should go over his bill to make sure it reflects the care he actually received. He should check for duplicate charges or errors. If anything looks unusual or he has questions, he should call the hospital’s billing department for clarification.

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Try negotiating and seek help

Once you’ve reviewed your bill, you may be able to negotiate a lower amount or set up a payment plan with the hospital. Some providers even offer a discount if you pay promptly. But it’s important to act before the bill goes to collections. At that point, you’ll have to deal with the collections agency — which means it’s already too late for Ted to negotiate with the hospital directly.

If the bill is large, you might consider working with a medical bill negotiator who can try to lower the amount on your behalf.

If you’re uninsured or underinsured, you may qualify for financial help through the hospital. The Affordable Care Act (ACA) requires hospitals to have a written Financial Assistance Policy (FAP) and an Emergency Medical Care policy. These programs may allow you to get free or reduced-cost care. You’ll need to fill out an application and provide financial documents, but you can ask debt collectors to pause collection efforts while your application is under review.

Several charities and government programs also offer support for medical debt, travel expenses and medical equipment. You may want to work with a patient advocate who can help you navigate the health care system, understand your bill and find assistance.

Ted’s story underscores one key lesson: Don’t wait. It takes time to apply for help and get approved, and you’ll want to set up a payment plan before the account is sent to collections.

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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Picture this: James and his wife Nola, both 62, have done well in life, earning a combined income that gives them an upper-class lifestyle. But, when their daughter Tia went to university, they told her they couldn’t afford to pay her way through.

Most of their money is tied up in investments and employer-sponsored retirement plans, as well as real estate. Aside from a lack of highly liquid assets, they also felt it was important for Tia to learn about financial responsibility.

But they’ve also left the door open for resentment. Since Tia has graduated, she has incurred $90,000 in student debt — and she isn’t happy about it.

Now James and Nola are wondering if there’s anything they should do to help their daughter without putting their retirement savings at risk.

Should you pay for your child’s college education?

This is a complex issue and there isn’t a “right” answer. For some families, paying for their child’s college education could put them into debt, possibly jeopardizing their own retirement or other financial goals.

According to Embark Student Corporation, 81% of Canadian parents believe it is their duty to pay for their child’s education, with 52% admitting they would go into debt to pay for their child’s education as of 2023.

Most financial advisors don’t recommend dipping into your retirement savings or using home equity to help your child avoid college debt.

When creating a financial plan, it is important for families to determine what feels right for them, but they also must act intentionally or the potentially have the window to save for university costs close.

This, perhaps, is the mistake that James and Nola made by not having honest conversations with their daughter long before she ever started applying to colleges. They left it too late, and now that window for Tia has closed.

Finding middle ground

For wealthy families, the debate about paying for a university education is a tough one. On one hand, if they pay for everything, their child doesn’t have to worry about going into debt or juggling a part-time job with schoolwork.

On the other hand, they may want their child to have some “skin in the game” so they’re better prepared for the real world. However, with the cost of a university education skyrocketing, parents may want to find some middle ground with their child.

According to the Government of Canada, the total amount of student loans owed sat at $23.5 billion in 2022. In April 2023, the accumulation of interest on the federal portion of a student loan was eliminated, which is certainly helpful in terms of paying off your debt faster. However, it still does not totally eliminate the burden of repayment.

If they could go back in time, James and Nola could have discussed the situation with Tia and explained why they couldn’t afford to pay for all of her college expenses — and perhaps worked with her to come up with some options.

For example, they could have paid a percentage of her costs if Tia paid the remainder. They could have matched her savings from a summer job, or, they could have helped Tia research alternatives such as merit-based scholarships and grants.

Other options to pay for university

Students from families who earn above a certain income threshold won’t qualify for federal student loans, but they may still want to file a free application for federal or provincial student loans.

Even better, they could have started early by setting up a RESP while Tia was still young.

It should be clear from the outset what you’re willing to contribute and what you expect your child to contribute. That’s the case even if you plan to pay for your child’s tuition in full. It should be apparent if there are “strings” attached, such as whether the child is expected to go to a school close to home in order for their tuition to be paid in full.

While James and Nola can’t go back in time, they can have open, honest conversations with Tia about her debt and how they might be able to help.

Maybe they gift her some money, or maybe they loan her some money, with or without interest, that she has to pay back at regular intervals.

They could also co-sign a private loan, which could help Tia get a more competitive interest rate — though it’s important to have a repayment plan in place. Ultimately, if Tia can’t repay the loan, it will fall to her parents as co-signers.

Having a plan could help ease the tension and start Tia off on the right foot as she begins a new life chapter.

Sources

1. 2. Government of Canada: Canada Student Financial Assistance Program annual report 2021 to 2022

3. National Student Loans Service Centre: What’s New

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Divorce isn’t just a young person’s game. For some, love is fleeting and can evaporate quickly. In other cases, it’s a bond that can last for decades until it’s worn down or suddenly broken.

Kathryn, 57, finds herself single after nearly 30 years of marriage. Her ex was the breadwinner of the household, and she only has about $18,000 saved for her retirement.

Since she’s about 10 years from retiring, she’s wondering if she still has time to catch up. Will she have to delay her retirement — or even forgo it altogether?

What is grey divorce?

Kathryn’s situation is far from unique. Grey divorce, sometimes referred to as silver divorce, refers to couples over 50 choosing to get a divorce — often after a long marriage, and often after their kids have grown up and left the nest.

The average age for those seeking divorce in Canada has steadily risen overtime. In 1970, the average age for those filing for divorce was 38.8, which in 2020, has risen to 46.0, according to Statistics Canada. However, while the rate of grey divorces increased 26% from 1991 to 2006, the most recent data from StatCan shows this number having levelled out as recently as 2020 (the most current data available on this trend right now).

Couples sometimes stay together for the kids, so once they’re empty nesters they decide to part ways. Or maybe they’ve just been growing apart for years and their interests have changed as they’ve grown older.

Retirement itself could be a trigger if their financial goals aren’t in sync. But grey divorce can also have a major financial impact on a couple’s golden years, especially if one partner was the runaway breadwinner.

How to rebuild a nest egg after grey divorce

Divorce can take a financial toll, and those close to retirement age, or already retired, have less time to rebuild their depleted funds.

Rebuilding isn’t easy, but it’s possible. Kathryn has $18,000 in her retirement savings, but she should also consider other sources of potential retirement income. For example, part of her divorce agreement may include access to a portion of her ex’s retirement plans.

Kathryn may be eligible for alimony or spousal maintenance, though the amount and duration will vary depending on provincial laws.

She may also inquire about Canada Pension Plan credit splitting, which is mandatory in many provinces and territories, with the exception of British Columbia, Alberta, Saskatchewan and Quebec, and as long as she meets the following criteria, as outlined by Canada Life:

• A person has lived with their former common-law partner for at least 12 consecutive months
• They’ve lived apart for at least 12 consecutive months (except in the case where their former common-law partner died during this period, in which case they may still qualify)
• A person or their former common-law partner applies in writing and sends Service Canada the necessary documents within 48 months of the date you began living apart (unless your former common-law spouse is still alive and agrees in writing to waive the 48-month time limit)

Additionally, the provinces allow CPP credit splitting to be negotiated.

A decade isn’t a lot of time, but it’s still possible for Kathryn to build up her nest egg by cutting back on spending while increasing her savings rate — though that could require some sacrifices.

Kathryn will first want to make sure she’s not leaving any money on the table in the form of shared retirement assets. From there, she can come up with a new retirement plan and project how much extra she’ll need to meet her goals.

She’ll also want to build an emergency fund (to cover at least three to six months’ worth of expenses) and pay off any high-interest debt as quickly as possible.

To increase her savings rate, she may want to consider taking on extra hours at work or supplementing her income with gig work. But she may also want to rethink her retirement plans, such as delaying retirement, working part-time in retirement or reducing her living expenses by downsizing or moving to a cheaper city or province.

It could be worth consulting a financial advisor to model various scenarios and come up with a post-divorce budget and new retirement plan.

Sources

1. Statistics Canada: Steady rise in the average age at divorce

2. Statistics Canada: A fifty-year look at divorces in Canada, 1970 to 2020 (Mar 9, 2022)

3. Canada Life: How does CPP/QPP credit splitting work in divorce or separation? (Feb 1, 2024)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Jamie, 59, is inching closer to retirement, but after going through a nasty divorce, his emergency fund and savings have been wiped out. He still has a 401(k) (the American equivalent of an RRSP), a pension and some investments, but his divorce will impact the value of those assets.

Without additional savings to supplement those assets — which will be divided up with his ex — he’s worried he’ll have to delay retirement or do some serious downsizing.

If you’re in a situation like Jamie, here are three crucial things to do right now to help cobble together a comfortable nest egg.

1. Calculate a new retirement number

You can’t plan a roadmap if you don’t know where you’re going. Since Jamie had a retirement plan with his ex-wife, he now has to create a new one for himself.

That means he’ll need to calculate a new ‘retirement number’ — the target amount you need to live the life you want in retirement. A rule of thumb is to save 10 to 12 times your final salary.

That number should take into account the age at which he wants to retire, his annual salary, his expenses and savings, as well as investment portfolio performance. It should also take into account the standard of living he wants to maintain in retirement.

Depending on his final retirement number, he may have to make a few adjustments, such as working a few years longer than he planned or perhaps downsizing his standard of living. He may even change his retirement plans altogether, like working part-time at a side hustle or moving out of the country.

While the divorce wiped him out, Jamie still has some retirement income. Since he will soon qualify for the Canada Pension Plan (CPP), he can use this to supplement any savings he manages to cobble together before he retires.

At 59, the earliest he could claim his CPP retirement benefit is one year from now, at age 60. However, if he starts collecting CPP at 60, his payments would decrease 0.6% each month — or 7.2% per year — up to a maximum reduction of 36%.

If he waits to claim his benefit after the age of 65, Jamie will see his payments increase by 0.7% each month — or 8.4% per year — up to 42% by age 70.

2. Understand the rules of dividing retirement assets

While his savings may be depleted, Jamie still has a pension, Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). It’s important to review your existing retirement accounts and understand how divorce will impact the division of those assets.

This can be made more complicated because the rules on dividing pensions and assets vary from province to province, so it’s a good idea to consult a divorce lawyer and financial advisor.

During a divorce, traditional pension plans, such as CPP, are subject to provincial division laws. For instance, in Ontario and British Columbia, the money incurred can be divided equally between spouses or even allocated based on other factors determined by the court, such as the duration of the relationship, date of separation, as well as eligibility and entitlement.

Funds that you’ve contributed during the course of your marriage to a RRSP are considered marital property in most provinces, although each has their own rules on how the funds are allocated during the separation process. For a regular RRSP, contributions made by the plan holder using their own income would not typically be subject to division. However, any instance of growth or increase in the value of the RRSP during the marriage may be subject to division.

Thankfully, any contributions to a TFSA are typically not subject to division, as each spouse is able to retain their right to their individual assets accumulated throughout the marriage.

3. Develop a new retirement savings strategy

Once you have a new retirement number in mind and understand how much you’ll have left over after divvying up your retirement assets, you can come up with a new retirement savings strategy. This should also factor in at what age you plan to claim your CPP retirement benefit.

For someone in their late 50s, it’s harder to catch up — you won’t benefit from the power of compounding — but it’s not impossible to cobble together some savings.

Jamie may need to cut back and live on less so he can direct as much as he can into savings. He may want to start by building up an emergency fund (to cover about three to six months of expenses) and paying down any high-interest debt. From there, he can start rebuilding his retirement savings.

That includes maxing out his RRSP, especially if his employer matches his contributions.

The maximum contribution limit for a RRSP in 2025 is $32,490. Additionally, any unused contribution room from previous years can also be added to your limit in the current year.

Jamie may also want to work with his financial advisor to explore his investment options and optimize his portfolio to meet his new goals. While his marriage may be over, it doesn’t mean his retirement dreams have to be.

Sources

1. Government of Canada: When to start your retirement pension

2. Canada Life: What happens to your pension in a divorce or separation? (Jul 18, 2023)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Charlotte, 54, was recently diagnosed with Stage 4 cancer, which means the disease has spread to other parts of her body. She doesn’t know how much longer she has, but she wants to get her finances in order while she can.

She’s currently working full-time, however, as her health quickly deteriorates, she’ll be quitting soon. But she still needs to pay the bills (including her medical bills), and she also has two college-age kids to whom she’d like to leave her estate.

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Having an estate plan should be a top priority for Charlotte, especially since she’s terminally ill. Otherwise, your state’s laws may determine what happens to your assets.

Here’s how Charlotte can gain some peace of mind knowing she’ll leave her loved ones financially secure.

Deal with your immediate financial needs

If Charlotte is unable to keep working, she’ll still need an income — and she’s too young to claim her Social Security retirement benefit.

However, she can apply for Social Security Disability Insurance (SSDI), and since she has Stage 4 cancer, she may qualify for expedited processing.

In the meantime, Charlotte could find out if she’s eligible for long-term disability (LTD) insurance through her employer. LTD insurance provides you with a portion of your salary if you can no longer work because of an injury or illness (so long as the injury or illness is covered by your policy).

If you’re accepted for SSDI, it’s possible to continue receiving LTD benefits, but the SSDI will offset and reduce those LTD benefits.

Get your affairs in order

Three out of four Americans don’t have a will, according to Caring.com’s 2025 Wills and Estate Planning Study — so if you don’t have one, you might want to make that a priority if you have a terminal illness. If you do have one, make sure it’s updated to reflect your current wishes.

Your will should specify how you want your property, money and other assets distributed when you die. If you don’t have a will, a probate court could oversee the management and distribution of assets according to state laws — and their choices may not align with your wishes.

Aside from your will, you may want to consider naming a durable power of attorney for finances, in which you designate a person who can make decisions on your behalf if you’re unable to due to illness or injury. You can also name a health care power of attorney, which designates a person to make decisions about your medical care on your behalf if you’re incapacitated.

Charlotte may want to consider a living will, which would specify which medical treatments she wants or doesn’t want if she can’t make decisions on her own. She should also talk to her doctors and loved ones about her wishes in the event of an emergency or at end of life.

Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

Consolidate your documents

Make sure all of your important documents are in an accessible place — and make sure to tell your lawyer and loved ones where to find them. You should also have copies of those documents in another secure location, like a safe deposit box. Once again, your lawyer and loved ones should be aware of this.

To simplify and streamline your affairs, you could create a “when I’m gone” folder that includes all important information, such as:

• Personal information (Social Security number, birth certificate and marriage certificate)
• Location of your latest will, living will and power of attorney
• Banks and account numbers
• Insurance policies
• Mortgage information and property deed
• Car title and registration
• Credit and debit card account numbers
• List of bills and subscriptions (which will need to be cancelled)
• List of income and assets (401(k)s, IRAs and pensions)
• List of investment income (stocks, bonds and property)
• Latest income tax return
• Copies of medical orders
• List of up-to-date passwords
• Contact information for friends, relatives, doctors, lawyers and financial advisors

It’s important to keep much of the above information out of your will, unless it’s necessary, as wills generally become public record after going through probate.

Review your documents

If you update your will, you’ll also want to update your retirement accounts, insurance policies and annuities — say, if you’re now divorced and want your children to be beneficiaries instead of your ex.

That’s because, even if you name a beneficiary in your will, the beneficiary selections on your retirement accounts, insurance policies and annuities may take precedence over your will. So make sure those beneficiary selections are current.

For some assets, like bank accounts, CD accounts and brokerage accounts, you could set up a transfer-on-death designation so your beneficiaries won’t have to go through a time-consuming probate process to receive those assets.

Make smart money moves

If you want to leave a financial legacy to your heirs (rather than a pile of debt) it’s important to make smart money moves now.

That could include paying down any high-interest debt, such as credit cards, car loans or any other loans or open lines of credit. That could also include simplifying your finances by consolidating your debt (combining multiple debts into one) and cancelling any credit cards or lines of credit you don’t need anymore.

Charlotte may want to consider leaving a monetary gift to her adult children now, which could potentially reduce estate taxes and simplify the settling of her estate after her death. For 2025, the annual gift tax exclusion is $19,000 per recipient, however, the lifetime exclusion limit is $13.99 million — although it’s set to drop drastically starting in 2026.

Estate planning is complex, so it may be a good idea to consult with one or several professionals, such as a financial advisor, estate planning attorney, insurance broker and/or tax professional.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Sometimes you can get the best advice by poking the bear.

One write-in guest on The Ramsey Show found out the hard way after trying to “make sense” of Dave Ramsey’s investment advice.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

“You keep saying to invest $100 a month beginning at age 30 and you’ll be worth $5 million at 70 years old,” wrote a man named Isaiah. “That’s the most ridiculous thing I’ve ever heard.”

Isaiah pointed out that the life expectancy of a white American male is 72 years old, while for a Black male it’s 68, meaning “most people will never live to see $5 million.” He asked Ramsey to help him “make sense of this advice”.

Ramsey, who called Isaiah “entitled” and “belligerent,” said the real issue is the idea “you’re supposed to get rich in 10 minutes”.

Here’s why investing still makes sense — even if America’s lifespan stats suggest many men won’t live long enough to enjoy all their savings.

Crunching the numbers

Ramsey admitted that Isaiah isn’t completely wrong about life expectancy, but said he was putting words in his mouth.

“We have never said $100 a month from [ages] 30 to 70 is $5 million — it’s not,” Ramsey said, in a recent episode. “It’s $1,176,000, and that would be true of … any 40-year period of time you wanted to pick.”

In 2023, the life expectancy for a man born in the U.S. was 75.8 years. For women, it was 81.1, according to the National Center for Health Sciences.

A Stanford study also found that “people who survive to age 65 are continuing to live longer than their parents — a trend that doesn’t appear to be slowing down.”

Ramsey said that saving $100 a month was an example — the idea is to save something every month and start building a “money mindset.”

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What is a money mindset?

A money mindset is “your unique set of beliefs and your attitude about money,” explained co-host Rachel Cruze in a blog for Ramsey Solutions.

That mindset “drives the decisions you make about saving, spending and handling money” and “shapes the way you feel about debt.”

Cruze pointed to a Ramsey Solutions study of more than 10,000 millionaires, which found that 97% believed they could become millionaires. “And having that mindset — not an inheritance, fancy education or wealthy parents — is exactly what caused them to succeed.”

Some people have an “abundance mindset,” a belief that there are plenty of opportunities for everyone to grow wealth. Others have a “scarcity mindset,” the belief that resources are limited and wealth is hard to come by.

An abundance mindset focuses on possibilities and potential. A scarcity mindset focuses on limitations and fear, which can lead to unhealthy financial behaviors, such as overspending or hoarding.

Shifting your money mindset

Changing your mindset is easier said than done. It often means identifying where your limiting beliefs come from — maybe your upbringing or past money mistakes. Then it takes time and self-reflection to overcome them.

An abundance mindset means looking at how to build wealth over time. It’s not just about saving $100 a month — it’s about how you use that money, whether through growing assets, investing or developing passive income streams.

“Millionaires focus on wealth creation, not just income generation,” wrote business strategist and CPA Melissa Houston in an article for Forbes. They “don’t chase quick wins or get-rich-quick schemes.”

Instead, they build sustainable wealth “through investments that appreciate over time” and make sure their money works for them through stocks, real estate and scalable business models.

They also invest in themselves, Houston added, whether that’s through personal or professional growth, finding a mentor or building a strong network.

“They constantly improve their skills, stay ahead of trends and surround themselves with high-value connections,” Houston said.

That doesn’t mean taking reckless risks — or avoiding risk altogether. It’s about educating yourself and learning how to take calculated, strategic financial risks. You can also start small by developing healthy habits. Create a budget, track your expenses and live below your means. Pay off high-interest debt or avoid it altogether.

Set clear financial goals. Start with small, achievable ones — like saving a little each month — and build up as your confidence grows. You might even want to work with a financial advisor to create a long-term plan.

As Ramsey told Isaiah, 89% of America’s millionaires are first-generation rich.

“Son, roll up your sleeves, live on less than you make, get out of debt, deny yourself a little bit of pleasure,” he said, “because you’re acting like a four-year-old.”

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Heather, who lives in Fairfax, Virginia, called into The Ramsey Show and asked co-hosts Dave Ramsey and Dr. John Delony if there’s any hope to get an 18-year-old to budget when she’s always had easy access to and been surrounded by wealth.

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She said her daughter was homeschooled and taught good values about money, but then went to a high school where “people will drive a different car to school every day just to show off their wealth.”

Heather says she has little control over her daughter’s spending habits since her husband insists on paying for everything, including college. Heather’s in-laws will also give her daughter money whenever she asks.

“You don’t have a daughter problem — you have a husband problem,” said Ramsey. He also said that no one with common sense would want to marry "princess girl" who has "never known a single boundary."

When parents aren’t on the same page

Heather’s daughter is acting like a typical 18-year-old, said Delony, and he “wouldn’t begrudge her a second” because the way she’s acting is “developmentally appropriate.”

That’s where parenting is supposed to come in.

Heather, who says she grew up poor, has been asking her husband to limit the amount of money they give their daughter — or, at least put it into an account they have access to so they can see how she’s spending it and discuss it with her. But he says it’s their daughter’s decision on how she spends that money and she needs to learn from her own mistakes.

Only it’s their money, not their daughter’s money.

Delony says a never-ending checking account for an 18-year-old is a “recipe for a disaster.” He said, "Prep yourself. Be prepared to wake up at 2 a.m. with a phone call from a dean of students of some college, cause it’s coming."

Since “your husband doesn’t care what you think,” he says Heather should start carving out some mom-and-daughter time each week. He suggests a regular breakfast date outside of the home until she graduates and leaves for college.

He thinks Heather should open up with her daughter about what life was like for her when she was 18 years old. These weekly chats are “planting seeds” so when Heather’s daughter is having trouble she’ll remember that she can trust her mom.

Ramsey says the answer lies in being proactive. Heather needs to insert herself into her daughter’s life and into her marriage in a proactive way — rather than standing on the sidelines watching a car wreck about to happen.

“If I’m you, I’m in a marriage counselor’s office real soon because your husband is a twerp and what he’s doing to you is unconscionable,” said Ramsey.

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How to teach teens responsible money management

Only 28 states require high school students to take a personal finance course to graduate. That means parents may be a child’s only source of financial education, learning the basics of earning, borrowing, lending and investing.

A Quicken survey of 2,000 adults in the U.S. found a “clear correlation” between early education in money and financial success as adults. Those who learned about money in their formative years were three times as likely (45% vs 14%) to have an annual income of $75K or higher than those who didn’t.

The survey suggests that teaching your kids healthy financial habits isn’t a “one-time conversation.” Rather, “parents who talk with their kids once a week about the issue are significantly more likely to have kids who say they are smart about money.”

Ramsey Solutions recommends that instead of giving kids an allowance, give them a commission for work done instead.

“When they do their chores, they’ll earn a commission,” says the website. “And when they don’t, they’ll realize they’ve made what they earned — nothing.” If they’re old enough for a job, they’ll also quickly learn that lesson.

If your teen wants to make a larger purchase, like a laptop or used car, consider loaning them money and “charging nominal interest so they get used to the concept,” says Daniel Hunt at Morgan Stanley Wealth Management.

“This can be as simple as lowering their ongoing allowance by a small amount until any advance has been repaid, with the amount of the decrease not counted against the amount owed,” he said in a blog post. “Such an approach mimics a ‘minimum payment’ option on revolving debt.”

Most importantly, they should “understand that their debt is their responsibility and that there are serious consequences if they don’t keep it under control,” he said.

Teaching teens about money management also means modeling the behavior you want them to learn — after all, kids learn by example. “If you buy everything you want for yourself with no limits on spending, then your kids will see that as normal behavior and do the same,” according to John Boitnott at Debt.com. But if you show your kids how and why you save money, “then your kids may be more inclined to be financially responsible in the future.”

This can be a challenge if both parents aren’t on the same page, like in Heather’s case. When it comes to teaching kids about money management and financial responsibility, parents should be in alignment on how they model financial boundaries — including the consequences of spending more than they earn.

As Ramsey tells Heather, her husband won’t “participate with you in parenting,” so that may require marital counseling along with maintaining an open dialogue with her daughter. And, at least according to Ramsey, there may be no hope for their daughter until their “marriage crisis” is addressed.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Residents of a Las Vegas senior living complex are urging management to take action on what they’re calling unsafe living conditions.

“We feel overlooked and abandoned,” residents of Acapella Senior Apartments wrote in a letter to corporate property management firm Ovation. In the letter, they complain of lack of security and unsafe living conditions.

Retirement communities typically offer senior-focused amenities and security features, from emergency alarms to gated facilities. But facilities with the highest levels of security are typically more expensive.

With many seniors living on a fixed income — and about six to eight million Americans aged 65+ living in poverty — they may be forced to decide between affordability and security.

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Why Acapella residents are concerned

At Acapella Senior Apartments, residents complained that the handicap button for the front door didn’t work, creating a safety hazard for seniors in walkers, scooters and wheelchairs. They also complained about homeless people coming into the building to use the amenities.

“We’ve got issues with security. We’ve got problems in the parking lot. Cars being broken into or stolen. We’ve got homeless people who try to get in the cars and when they do, they sleep in them,” a female resident, who wanted to remain anonymous, told KLAS 8 News Now. “In fact, I had someone who tried to get in my apartment.”

According to one Ovation employee who wished to remain anonymous, “there’s an extreme amount of neglect when it comes to the elders here,” and addressing complaints was like a “revolving door.”

Following 8 News Now’s report, however, Ovation’s director of LIHTC and compliance, Phyllis Garcia, said in a statement that they’re committed to increasing their on-site staffing.

“While our building has controlled entry and is monitored by security cameras, as well as roaming security guards, we understand that procedures and systems alone are not always enough. Our residents must feel genuinely protected and cared for, and we are actively developing plans to strengthen those protections,” she said.

While retirement communities are generally less expensive than assisted living or memory care facilities, they average about $3,100 a month, according to a 2024 report by A Place for Mom, a senior living advisory service.

The costs of security measures in senior living facilities are typically incorporated into monthly fees.

“Retirement communities often include security services such as on-site security personnel, surveillance cameras and/or gated entrances as part of the monthly fee,” according to myLifeSite, an educational resource for senior living options. Some may also offer in-residence or wearable emergency alert systems.

But these types of security measures come at a cost (such as higher monthly fees), which can be challenging for seniors living on a fixed income. On the other hand, lack of security could impact their sense of safety and peace of mind.

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Challenges of living on a fixed income

Many seniors live on a fixed income that comes from Social Security, retirement savings and, in some cases, a pension. While Social Security retirement benefits do get a boost from the annual cost-of-living adjustment (COLA), which provides an automatic increase in monthly benefits to keep up with inflation, it may still fall short.

The COLA for 2025 is 2.5%, so that means a monthly check of $2,000 would increase by $50. But food, utilities, rent and prescriptions are already consuming a large portion of retirees’ income.

With rising costs, many are feeling the squeeze. The cost of food is continuing to rise — food prices in May 2025 were 2.9% higher than in May 2024, according to the Consumer Price Index).

And Medicare is getting more expensive. The standard Medicare Part B premium increased to $185 per month in 2025, from $174.70 in 2024, while the annual deductible rose to $257 from $240).

So even a $25 to $50 increase in monthly housing costs to fund security upgrades (or other unexpected costs) could mean residents have to cut back on essentials like groceries or skip medications just to scrape by.

However, without security upgrades, they could be at physical and financial risk from vandalism, break-ins, theft and violence.

For those looking to move into a retirement community, look for facilities that abide by various safety codes and standards, including those from the International Building Code, the Facility Guidelines Institute, the National Fire Protection Association’s Life Safety Code and the Americans with Disability Act. Ask current residents about their experiences.

For those already in a retirement community and facing the prospect of rising costs, there may be ways to save money. For example, you may qualify for food assistance, as well as help with covering the costs of prescriptions, healthcare and even housing.

The National Council on Aging (NCOA) offers online tools such as Benefits CheckUp (to see if you’re eligible for benefits programs) and Job Skills CheckUp (to help older adults find jobs as a mature worker).

An analysis by the NCOA and LeadingAge LTSS Center @ UMass Boston found that 80% of older adults face financial insecurity. While seniors shouldn’t have to choose between safety and affordability, increasingly that may be the case.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.