“He should have talked more,” says Schwab-Pomerantz, a senior vice president at Schwab and prominent advocate for financial literacy.

Schwab did instill in her the importance of saving and having a strong work ethic. Those are both part of the foundation of financial awareness she says is essential to achieving a secure retirement.

“People should be well-informed about money so they can ask the right questions and make good decisions,” says Schwab-Pomerantz, president of the Charles Schwab Foundation, which aims to help individuals and families achieve financial well-being.

A certified financial planner in her own right, Schwab-Pomerantz serves on the President’s Advisory Council on Financial Capability and, with her father, co-authored the book “It Pays to Talk: How to Have the Essential Conversations With Your Family About Money and Investing.” She and her husband, author Gary Pomerantz, have three children and live in the San Francisco Bay area.

She shared her thoughts on how Americans can maintain financial fitness, as she calls it, from childhood through retirement in a recent interview with The Associated Press in conjunction with National Financial Literacy Month. Here are edited excerpts:

Q: Everyone seems to agree that financial literacy in this country is lagging. What can be done about it?

A: I wish Congress would simplify all the choices people face for saving for retirement. One thing the president’s council is looking at is having one IRA from birth that would be your savings account for retirement for the rest of your life. That promotes being involved with your money, and saving, and getting interested and knowledgeable about it.

In the meantime, we have to educate ourselves. Unfortunately, financial principles aren’t taught in schools.

Q: So how do parents educate their kids about money?

A: I’m a big believer in starting to teach your kids when they’re young. Give them an allowance, get them to save at an early age and have them get jobs when they’re a little older. Kids who work are much more likely to be stellar savers. And start talking to them about retirement, even though it’s “boring.”

I also think it’s a good idea to get them a credit card when they’re about 16 and have them practice paying it off on a monthly basis. I call it a credit card on training wheels. Credit cards definitely have a place in our lives, and they’re important. But it’s like with a car — it can be dangerous if you don’t know how to drive it safely.

Q: What did you do with your own children (now 23, 20 and 15)?

A: I made them all get jobs. We’re such a wealthy society that we spoil our kids. One of my kids’ friends’ parents didn’t want him to get a job if it was menial. Meanwhile, my son was a bagger at a grocery store. He was humiliated, but my dad was like … We were so proud of him. It’s about responsbility, it’s about customer service — there’s so much to be learned from that.

Q: How else did you educate them about money?

A: I opened custodial accounts for them when they were 13. I brought each of them to the Schwab office, sat them down and had them fill out the paperwork. They saved birthday gifts and money from their jobs. And when the two boys got their first jobs, at 16, I highly encouraged them to open up Roth IRAs, and they did.

They’ve gotten really invested in investing. I’ve been teaching them the virtues of diversification and long-term investing. I think I have them bought into it!

Q: What about adults — how do you recommend they become more financially savvy?

A: It’s really important for families to talk about money and investing. And it’s particularly important for baby boomers and all those over 50. The economic downturn, I believe, had a lot to do with the lack of financial literacy in our country. A lot of people got themselves in trouble because they didn’t have a baseline education to make good decisions.

Q: What are the biggest mistakes in retirement planning?

A: Not being well-informed and starting to save too late. What people don’t realize is the longer you wait to save, the harder it is — the more you have to save to build enough of a nest egg to have a secure retirement.

If you start when you’re in your 20s, you need to save roughly 10 percent of your income. If you start in your 30s it’s about 15 to 20 percent, and in your 40s it’s 25 percent. A quarter of your income to the future — that’s hard for anybody. So, better to start early. The earlier you start, the easier it is to build that nest egg.

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Personal Finance Writer Dave Carpenter can be reached at www.twitter.com/scribblerdave

Driving the gains were stock portfolios, which surged nearly 10 percent in the fourth quarter. And stocks have since risen further. Since early October, the Standard & Poor’s 500 index has jumped 24 percent.

Neerja Pahwa is sensing a difference.

Pahwa, a flight attendant and fragrance consultant from St. Louis, still hasn’t recouped all the investment losses she suffered during the recession. But she now feels comfortable enough about her finances to eat out and stop by Starbucks more frequently. She recently made a down payment on a retirement home in Florida.

“Things are looking brighter and sunnier,” said Pahwa, 64, who hopes to retire next year — if the economy keeps improving. “I don’t have too much in my pocket. But I know it’s coming. Things are only going to get better.”

Household wealth, or net worth, reflects the value of assets like homes, bank accounts and stocks, minus debts like mortgages and credit cards. It bottomed during the recession at $49 trillion in the first quarter of 2009. It’s still well below its pre-recession peak of $66 trillion.

The Fed’s quarterly report documents most of the financial transactions that occur in the United States.

Greater net worth tends to boost the economy. When people feel wealthier, they typically spend more. Businesses respond by stepping up plans to hire and expand.

Arash Shirazi of Washington, D.C., is spending again after cutting costs during the recession. He says his portfolio has nearly recouped all its losses. Now he’s planning to fly to Paris on business and thinking about expanding his music and talent agency.

“Things are getting better,” said Shirazi, 37. “I’m not going on vacations or buying new cars. But I’m definitely starting to spend a little more.”

Corporations are also wealthier. They held a record $2.2 trillion in cash at the end of the year, up from $ 2.1 trillion at the end of September.

Still, few Americans are seeing any returns on their biggest investment — their home. Home values dropped 1.3 percent in the October-December quarter to roughly $16 trillion. The value of U.S. housing remains nearly 24 percent below where it was when the recession began in December 2007.

The housing market has shown incremental signs of improvement in recent months. It could benefit further if the job market keeps improving.

The economy has added 200,000 net jobs on average from November through January. The unemployment rate has dropped for five straight months to 8.3 percent. Economists estimate that more than 200,000 jobs were added in February, too. The government will release the February jobs report on Friday.

The improved economic outlook has emboldened some people to borrow more. In the final three months of last year, household debt rose at an annual rate of 0.25 percent. It was the first increase since mid-2008.

“Consumers have been more willing to use credit cards for shopping, signaling renewed confidence in their financial and job prospects,” said Paul Edelstein, director of financial economics at IHS Global Insight.

That doesn’t mean Americans are starting to significantly load up their credit cards again, financial planners and economic analysts say. Credit card debt remains well below its pre-recession level as measured by a separate report released by the Fed this week.

An Associated Press survey of economists last month found that they expect Americans to save gradually less and borrow more, reversing a shift toward frugality that followed the financial crisis and start of the Great Recession.

Roughly half of U.S. households own stocks or stock mutual funds. Stock portfolios make up about 15 percent of Americans’ wealth. That’s less than housing but ahead of bank deposits, according to the Fed’s report.

Most stock wealth is owned by the richest Americans, who also account for a disproportionate amount of consumer spending. Eighty percent of stocks belong to the richest 10 percent of Americans. And the richest 20 percent represent about 40 percent of consumer spending.

In three years, stocks have nearly doubled. Thanks largely to that surge, about 95 percent of people with 401(k) retirement savings plans have more money in their accounts than at the peak of the stock market in October 2007, according to the Employee Benefit Research Institute in Washington. That’s largely because of workers’ continued contributions to their retirement accounts.

The average 401(k) balance in accounts at Fidelity Investments, the nation’s largest 401(k) administrator, rose 8 percent in the fourth quarter. And stock gains this year have likely increased those accounts further.

That doesn’t mean people are feeling carefree about their financial situations.

“Many people are surprised their net worth has increased,” said Tom McGuigan, a certified financial planner at Oklahoma City-based Burns Advisory Group. “And some aren’t even sure it’s real yet.”

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Carpenter reported from Chicago.

It’s also wise to record your financial goals and plans, such as how much money you expect to withdraw from savings every month.

“The more detailed the information about your spending requirements and investment goals, the greater your chances of success,” says Bob Stammers, director of investor education for the nonprofit CFA Institute for financial analysts.

2. Attack your debt.

Along with putting on pounds, new retirees are prone to running up debt with their newfound freedom. Paying off credit card debt should be a top priority.

After the card debt is zeroed out, use only one card and pay off the balance monthly. If an emergency expense leads to a balance, don’t let it linger or it will erode retirement savings.

If your savings are languishing in a money market account or certificate of deposit earning practically nothing, you can put a chunk of it to greater use by paying off a credit card with an interest rate of 15 or 20 percent. Having savings yields at rock-bottom lows presents a rare opportunity to instantly improve your finances.

“There may never be a better time than now to clear up all of your credit card debt,” says Michael Kresh, a certified financial planner in Islandia, N.Y.

3. Invest in dividend-paying stocks.

It’s tough for retirees to get meaningful income on their money from the traditional sources. The best-paying money market and savings accounts yield just 1 percent, five-year CDs no better than 1.95 percent, according to Bankrate.com. Even the U.S. government’s 10-year Treasury note has been hovering around 2 percent.

For a bit more risk in the short term, blue chip stocks that pay dividends offer a combination of reliable income and good odds for share price appreciation over the long haul.

Income investors have few alternatives to dividend stocks in this environment, says Howard Silverblatt, senior analyst for Standard & Poor’s.

The average dividend stock yielded 2.8 percent in 2011, and investors can better that with such blue chips as General Electric Co., 3.8 percent, or Pfizer Inc., 4.7 percent. Other good options include dividend-heavy mutual fund T. Rowe Price Equity Income (PRFDX), which gets a gold-medal rating from Morningstar, and exchange-traded fund Vanguard Dividend Appreciation (VIG), which carries a five-star rating.

4. Get your estate plan in order.

Make sure your estate plan and financial documents are updated. Tax laws change and documents may be out of date. Beneficiaries may need to be revised.

Set up a review with an attorney and investment adviser to make sure all of your plans are current. If you need help finding a financial planner near you, check the website of the National Association of Personal Financial Advisors, .

A basic estate plan includes a will, living will, durable power of attorney and health-care proxy or living will.

5. Be more generous.

Resolve to be more charitable, giving to worthy causes for others as well as your loved ones. It’s rewarding and makes tax and financial sense too.

Remember that you can give gifts of up to $13,000 annually without triggering taxes. Helping a younger family member can also set an admirable precedent that reinforces the importance of charitable giving.

You may want to consider a charitable gift annuity, in which you donate to a large charity and receive regular lifetime payments in return.

“In times of very low interest rates and declining returns on assets, this is a good way for retirees to increase their cash flow and get an income tax deduction while helping a charity,” says Michael Dribin, a trusts and estates attorney for Harper Meyer in Miami.

6. Check into long-term care insurance possibilities.

Consider getting a long-term care policy. It may already be too expensive if you have health issues or are well into retirement. But note that roughly a fifth of those who sign up for coverage do so at age 65 or older, according to the American Association for Long-Term Care Insurance.

About 70 percent of people over 65 will require long-term care services at some point. And neither private health insurance nor Medicare pay for the majority of the services people need — help with personal care such as dressing or using the bathroom independently. That can be a devastating financial burden without coverage. An assisted living facility costs an average of $38,280 per year, a semi-private room in a nursing room runs $73,000 and home health aides charge $19 to $21 an hour, according to the insurance association.

A typical long-term care policy costs upwards of $4,000 per year for a 65-year-old couple. By 70, for those still able to qualify, that more than doubles. So don’t delay on this one.

7. Stretch your body and mind.

Choose daily pursuits that keep you physically, mentally and socially engaged.

There’s abundant evidence that continued physical activity helps people live longer, feel better, avoid depression and keep their mental skills sharp.

“Functional disabilities shouldn’t keep you from exercising,” says Dr. Amy Ehrlich, a geriatrician with Montefiore Medical Center in the Bronx, N.Y,

She puts frail elderly patients on a walking program. If they can’t walk, she puts them on a swimming program. And if they can’t swim, she has them take a water aerobics class.

Studies show that people benefit from efforts to stay cognitively sharp — from doing a daily crossword to playing games to reading. Maintaining social ties also is critical. Older people who volunteer in schools, for example, feel happier, more useful and more satisfied with their lives.

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Personal Finance Writer Dave Carpenter can be reached at .

Workers coming back from summer breaks are also inclined to sell stocks as they get their financial affairs in order. Any festering issues with the economy or stocks during the summer, when trading volume is light, tend to get put off until fall.

The result: September is usually a dog of a month for the market. It typically starts with solid market increases, then tails off, says Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac.

“There’s just a general selling bias in the month of September,” he says.

Four times in the past decade alone, the S&P 500 shed at least 5 percent in September. The average September decline since 1950 is 0.6 percent, according to the Stock Trader’s Almanac. February is the next worst, with an average 0.2 percent loss, and December and November are the best, averaging 1.6 percent gains.

Of course, investors haven’t forgotten that the financial world collapsed in September just two years ago. And the Sept. 11 attacks, which delivered a devastating blow to the stock market, remain a painful memory.

This year, there’s a lot to frown about. The S&P 500 index is down 14 percent from its high in April, and 5 percent for the month of August alone as of Tuesday afternoon.

Stocks have fallen because the economic recovery is faltering. The economy has slowed to anemic growth, home sales the last three months are the worst on record, consumer spending is lackluster and unemployment is stuck near 10 percent.

The slew of weak economic data sapped the market of what little midsummer momentum it had and further shook the confidence of already wary investors.

“I don’t think it would take a whole lot to get investors to start selling and consumers to start pulling back again,” says Mark Zandi, chief economist at Moody’s Economy.com. “The collective psyche is on edge.”

Federal Reserve Chairman Ben Bernanke said last week that the central bank is ready to take additional steps to boost the economy, including buying more debt or mortgage securities in order to keep interest rates low.

But with the benchmark interest rate already near zero, any Fed action is unlikely to provide the oomph of past measures. Congress doesn’t appear to have an appetite for another stimulus package.

Also hanging over the market is an air of heightened uncertainty because the November elections will determine which party controls Congress for the next two years. The S&P 500 has declined an average 1.7 percent in the September before midterm elections since 1930.

Not that September isn’t bad enough already without all of this year’s baggage. It’s one of only three months, along with February and June, when stock prices typically decline.

The uncertainty is a serious consideration for financial advisers such as Dominick Vetrano of Fountainhead Financial in Chicago. He holds off putting more money into stocks beginning in August, even though he thinks the September market dips are usually psychological.

“There is little to gain by investing right before September and a lot to lose, so why risk it?” he says. “The September effect is well-documented.”

Some experienced market participants, however, dismiss the significance of the trend and say it would be a mistake to try to time market decisions based on seasonal data from past years.

Investors ultimately should be guided by the financial health of the companies they’re considering investing in. Hirsch, the market historian, agrees that history shouldn’t guide investing alone. After all, the S&P 500 advanced 4 percent last September.

But he maintains that the numbers are too meaningful to dismiss entirely.

“You should have a general idea of what the market’s rhythm and tendencies are,” he says. “And you respond accordingly.”

That deprives the government of billions of dollars in annual revenue but represents an unexpected bonanza for those who inherit wealth.

“If you’re super-wealthy, it’s a good year to die,” said Jack Nuckolls, an attorney and estate planner with the accounting firm BDO Seidman. “It really is.”

The death of the 80-year-old Steinbrenner, who had been in poor health for years, highlights a quirky tax situation that has drawn much scrutiny among the moneyed but little on Main Street. Only those with estates valued at more than $3.5 million had to pay under the old law.

Without knowing the exact details of Steinbrenner’s holdings and estate plan, it’s impossible to say how much money will be saved. But estate planners and tax experts say it’s likely that the estate benefited hugely by the timing of his death.

A glance at some numbers suggests roughly how it may work.

Forbes magazine has estimated Steinbrenner’s estate at $1.1 billion. The federal estate tax in 2009 was 45 percent, with the $3.5 million per-person exemption. If he had died last year, his estate could thus have faced federal taxes of almost $500 million, depending on how the estate was structured.

That doesn’t mean his heirs permanently escape all taxes related to his assets. They will still have to ultimately pay a capital gains tax if and when assets are sold. And due to a change in tax law this year, the tax would be applied to the amount by which the assets have appreciated since Steinbrenner acquired them.

Even if the Steinbrenners sold the assets right away, the top capital gains tax rate is 15 percent. Worst-case scenario, depending on how much the assets appreciated after Steinbrenner acquired them: a $165 million tax bill.

That’s a tax break of about $328 million. A-Rod’s 2010 salary: $32 million.

The Steinbrenner family has not suggested any sale is planned.

“There are no succession issues, and the team will not be sold,” Yankees president Randy Levine said.

The Steinbrenners therefore are expected to avoid what happened to the family of Chicago Cubs owner P.K. Wrigley after he died in 1977. The family was forced to sell the Cubs to the Tribune Co. four years later to pay the taxes on Wrigley’s estate.

As Steinbrenner’s Yankees transformed into Yankee Global Enterprises, which includes the cable TV operation YES Network and Legends Hospitality, estate planning issues for a transfer to his children were dealt with, according to a Yankees official who spoke on condition of anonymity because those details weren’t released

Estate taxes can be reduced through certain planning measures — such as gifts and asset sales to family members at discounted values. However, except for the unusual circumstances of 2010, they cannot be eliminated unless you give it all to charity.

Some wealthy families use trusts to lower estate taxes. But even transferring assets to family trusts wouldn’t have significantly lessened Steinbrenner’s federal tax liability unless he gave vast amounts of assets to relatives as gifts before he died. Those would have been subject to a large gift tax.

That’s unlikely since very few people choose to pay a large tax anount sooner than necessary, according to Richard Behrendt, senior estate planner for Baird Financial Advisors in Milwaukee and a former estate tax attorney for the Internal Revenue Service.

The estate tax is scheduled to return in 2011, with a top rate of 55 percent. The House passed a bill last year that would have extended the estate tax at the 2009 rates, but it stalled in the Senate. Many Republicans want to eliminate the federal estate tax altogether, while many Democrats want to extend it at the 2009 rates.

There had been talk on Capitol Hill of reinstating it retroactively, to the start of the year. But as the year progresses, lawmakers say that is increasingly unlikely.

“If Congress doesn’t go retroactive, then he picked a great year to die,” said Robert Steele, who heads of the trusts and estates department at the law firm of Wolf Haldenstein Adler Freeman & Herz in New York. “There will be possibly tremendous capital gains tax, but the capital gains rate is a lot lower than the estate tax rate would have been.”

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Ohlemacher reported from Washington. AP Sports Writer Ronald Blum also contributed to this report.