Savings or more so the lack of savings

Discussion in 'Politics, Religion, Social Issues' started by Rodimus Prime, Oct 21, 2008.

  1. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #1
    I am trying to understand why no one has any real savings built up any more. I seeing articles left and right that are disturbing about how little people have in for retirement.
    But besides retirement just basic liquid emergency savings it what shocks me is how little people have in there. So many people do not even have 500 put away much less 3+ months expenses so even a little change completely fries them.

    That part of the problem we got into in this current mess is people where living paycheck to paycheck hardly being able to cover there debts and cost per months then you run up fuel prices and completely messes them up. I had a few friends this summer that where really stretch with the gas prices.

    I personally am doing pretty well and figure out how to save money with my own tendencies to over spend. One for me was keep my checking account artificially low by just pulling money out at the end of the month and putting into my savings it has that can not touch that feeling mentally on it. Mix that with an automatic transfer every paycheck that is treated as a bill really help me build up my savings this year since getting out of college.

    It made it nice for me when I had to do 500 or so repairs on my car and have another 500 forthcoming does not make me worry where am I going to get the money to cover it.

    I just do not get why people do not just save some money and get a small emergency fund built up.
     
  2. fivepoint macrumors 65816

    fivepoint

    Joined:
    Sep 28, 2007
    Location:
    IOWA
    #2
    One of the biggest issues is that our high schools and even colleges don't even teach basic finance and economics any more. I find it hilarious if not disturbing that kids who graduate from High School in America are forced to take a foreign language or higher math, without even requiring them to understand how to balance a checkbook, or the basics of "the time-value of money".

    They go off to college or to start a family, and don't even know why they should save. They spend 100% (or more) of their income on things. Things they want, but do not need. People are graduating college with thousands of dollars in credit card debt, but no one ever told them that was a bad thing! Which leads me to another point... how about some critical thinking. You shouldn't have to "learn" that a 20% interest rate is a bad thing.
     
  3. takao macrumors 68040

    takao

    Joined:
    Dec 25, 2003
    Location:
    Dornbirn (Austria)
    #3
    well that attitude has been built up over decades it sure isn't going away by some highschool course if politics continue to beat the "if consumers keep spending our economy will get better and better even if they have to take a credit to do so" drums.. and that across all party lines
     
  4. fivepoint macrumors 65816

    fivepoint

    Joined:
    Sep 28, 2007
    Location:
    IOWA
    #4
    Exactly. Every single thing these politicians do is based around short-term benefits. No one thinks about the big long-term picture! Republicans, democrats, they're all so excited to spend, spend, spend... no one ever thinks about what that actually means!
     

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