Question

What are the two key choices U.S. citizens need to make that determines their relative wealth?

Short answer

The two main options that determine the relative wealth of the citizens of U.S. are education and saving.

Step-by-step solution

Concept introduction

The term "relative wealth" refers to a person's financial position in relation to other people in society.

Explanation of solution

To enhance their relative wealth, Americans must choose between two options. There are numerous options available.

Schooling: Most Americans complete their basic education and begin working, which results in a lower salary than if they pursue more education and training over the course of two years.$50\%$

Savings: They should begin saving at a young age, such as at the age of $25$v if they only save $\$3000$ once and never touch it. After 40 years, that sum has grown to $\$44,923.$ Saving $\$3000$ only once can result in a profit of$\$45,000.$ If they save more money, they will get wealthier.

As a result, relative wealth can be grown strategically.