Weren't our grandparents taught to save?

[runamuck]

It seems to me that our grandparents were taught to save, and always be ready for a "rainy day". What happened? Did they forget to teach this to our parents, and have they so forgotten as well?

I don't believe our elders ever expected to rely on "credit" to maintain their lives. Why can't people see this simple truth today, when the politicians and media are trying to tell us that we "can't survive" without EASY credit? *sigh*

How did it come to this?

[angelatc]

Our grandparents went through the Depression, and we didn't.

But we do save more than the media gives us credit for. None of our ancestors had 401ks or IRAs.

[billjarrett]

Inflation. My parents bought their house in 1972, paid $19,000 for it (which was expensive at the time). They were able to afford a 4 bedroom/living/dining/kitchen/2 bath with full basement on 1.5 lots in a nice suburb on just my dads wages, and he was a high school drop out welder.

Now you've got couples with educations, working full time at better paying jobs than welders, who couldn't afford a house like that.

Thats just one example. The cost of things has outpaced the income of people.

[Liberty Rebellion]

Not only is inflation a big problem, but the easy credit that was provided to people along with the thought that Social Security was going to be something to retire on.

Plus, the ridiculous amount of deductions from our paychecks they take for Medicare, Medicaid, SS, and income tax. The bastards took almost 33% of my income in income tax alone last year. :mad:

[Jeremy]

OK... there are at least two different generations here, so yah

Well I'm in the younger one, and since we're growing up in hard times... hopefully it knocks some sense into the people... well I doubt it has happened so far <.<

I, at least, save

[billjarrett]

The bastards took almost 33% of my income in income tax alone last year. :mad:

Yes, that too..

Why don't they bring that up on these discussions of people not being able to pay their mortgage? Figure 33% out of the paycheck.. 6-7% on everything you buy.. a few thousand a year in real estate taxes... Then all the taxes, fees, and crap on every bill you pay.. then drivers license fees, village stickers, and the other piddly stuff they charge for.

And then they wonder why people can't pay their mortgage. Maybe if they left some of our paychecks for us, there would be more of us able to afford it.

How about this bailout plan? Congress cuts their spending, income tax lowered to 0%, people can pay their bills and the banks get their money?

[jyakulis]

It seems to me that our grandparents were taught to save, and always be ready for a "rainy day". What happened? Did they forget to teach this to our parents, and have they so forgotten as well?

I don't believe our elders ever expected to rely on "credit" to maintain their lives. Why can't people see this simple truth today, when the politicians and media are trying to tell us that we "can't survive" without EASY credit? *sigh*

How did it come to this?

I dunno. My grandparents definitely taught my parents to save. They are thrifty as fuck. My parents have never not paid a credit card bill in full exactly on time. In fact, my mom and dad love credit cards so they get a free 1 percent on all the money they spend. Anyway. they passed this on to me. My friends always call me a little a jew the way I chronically save. As for the rest of the population....I have no clue.

[brandon]

It seems to me that our grandparents were taught to save, and always be ready for a "rainy day". What happened? Did they forget to teach this to our parents, and have they so forgotten as well?

I don't believe our elders ever expected to rely on "credit" to maintain their lives. Why can't people see this simple truth today, when the politicians and media are trying to tell us that we "can't survive" without EASY credit? *sigh*

How did it come to this?
Want to hear something funny?

My grandfather is getting pretty old, and in an effort to protect his savings from the estate tax/nursing homes he decided to start gifting out some of it this year.

He gave me $12,000 - which I really appreciate. It is extremely noble of him and helps me tremendously. But I was thinking that this $12,000 will cover only about half of my share of the national debt his generation left me with. So maybe he should be the one thanking me?

[oilboiler]

There was a time where it was possible to save. Under the gold standard prices were stable for 100 years. That all ended shortly after the Fed was established, which is nothing more than a contrivance to steal savings. That is why we ended up with this stupid casino economy which is only doomed to fail.

[Kludge]

Our grandparents went through the Depression, and we didn't.

But we do save more than the media gives us credit for. None of our ancestors had 401ks or IRAs.

Pfff, them's fer suckers. My generation gets high-limit Roth IRAs.

[JosephTheLibertarian]

your wrist bands suck, Ben

I save

[Kludge]

your wrist bands suck, Ben

I save

pwnt.

[oilboiler]

Pfff, them's fer suckers. My generation gets high-limit Roth IRAs.

So, what happens when us boomers need to start selling financial assets to pay for living expenses, in a hyperinflationary environment....hmmmmm?

[Kludge]

So, what happens when us boomers need to start selling financial assets to pay for living expenses, in a hyperinflationary environment....hmmmmm?

You start drawing out what's left of the Social Security we're paying for and will never see a dime of.

[RideTheDirt]

How did it come to this?


EASY credit? *sigh*


you said it!

[JosephTheLibertarian]

You start drawing out what's left of the Social Security we're paying for and will never see a dime of.

you need to work on your web designing

[Kludge]

you need to work on your web designing

:rolleyes: Go socialize with your rats.

[oilboiler]

You start drawing out what's left of the Social Security we're paying for and will never see a dime of.

Yep, but I taught my kids to revolt against this - and if they win I will die happy.

[RockEnds]

Well, my grandpa was born in 1878, so he's probably a little older than the typical grandparent, but yeah, he was taught to save and never ever apply for credit. No trust for bankers or politicians, but fiercely self-sufficient. Oh, for the good old days.

http://i332.photobucket.com/albums/m344/RockEnds/Grandpasmall.jpg

[bcreps85]

Saving used to matter. My grandma worked part time at a grocery store while my grandpa worked construction and they were able to afford a good sized house...for $12,000. Nowadays you have couples that have both gotten a good education, both work full time, but quite simply can't afford a fraction of what previous generations got for it...the only way to get a house is to feed the debt monster.

That of course was back when the middle class was allowed to prosper. Nowadays the government takes 30% of your paycheck, and then you also get stuck paying between 6-10% sales tax...so you never really see about 40% of the money you earn...

[phoenixrising]

interesting points of view w/varying generations on this topic :)

my *parents* went thru the depression. 5 kids to feed & clothe & they managed to purchase real estate to boot. 3 of us went thru college too (2 didn't want to) & they "co-signed" for the loans...which was cool. kinda made u go thru school a bit more seriously....or drop out.

we all had jobs even at young ages...yard work, babysitting, snow shoveling, paper routes etc...so if we wanted something--we earned it.

as an adult i was pretty frugal...yet after a major move & starting all over in a more expensive area...we did something we never did b/4 ...& allowed ourselves to be sucked into the *credit trap* ...we ended up going thru a BK 17 yrs ago & actually it was the best thing that could have happened! we learned a LOT!

after that we became *serious* weekly SAVERS....regardless of the cost of living where we are.... where there is a will there IS a way!!!

the other thing that helped us imho is...we both are self employed. so if u want to make more cash...work more. plus the coup is...so much MORE is deductible IF i have to pay this false tax!!

we were blessed to be able to buy a home finally 10 yrs ago...refi'd 3x...ONLY to take the interest down....so when the crazy markets were going bizzurk...we left every penny in the property...plus we pay a measley $25 extra every mo. & it drops 3 more yrs off the repay time.

we use credit cards for almost everything (for miles or cashbacks)--yet they are paid in full every month. so i guess we are now called "dead beats"

IF iwe buy something at home depot on their 12 month no payment deal...the first thing i do is calcualte a monthly payment of 1/12th the cost THEN decide if we can afford it now. hell! i'll *use* their money interest free for sure!!

it makes me sick to see all the cc companies on campuses today. it gives the WRONG impression for sure! CREDIT ...is not CASH.....peopel forget to look at the cards as "this is what i owe" NOT "this is what i have"

EASY credit...given to people who don't know how to handle it...or what it *really* means...is how we got where we are...on every level of society. (imho) it's a deathtrap...& they KNEW it when they gave it to ya! so it's up to u tolearn how to use it & make the game *backfire*

[Matt Collins]

DAMN GOOD BOOK:


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[Jean]

In the past you could save your money in the bank and get interest! Now days the interest does not even keep pace with drop in the dollar!

[H Roark]

Good point. The media keeps hammering on this idea about how people can't buy cars or houses without these loans [that are rightly being denied.] As if people are entitled to credit.

There are plenty of people rolling around in luxury cars, speaking into high-tech cell phones, and wearing expensive shoes that don't belong on their feet. All thanks to a lifestyle built on credit. I used to think that America was the wealthiest nation because we produced better, but thats just wrong.

I know my friends think I'm a cheap ass, but hey I'm the one with a degree and zero debt.

[phoenixrising]

here here!

[kaberUSA]

Why save if your money becomes worthless.

[freelance]

Want to hear something funny?

My grandfather is getting pretty old, and in an effort to protect his savings from the estate tax/nursing homes he decided to start gifting out some of it this year.

He gave me $12,000 - which I really appreciate. It is extremely noble of him and helps me tremendously. But I was thinking that this $12,000 will cover only about half of my share of the national debt his generation left me with. So maybe he should be the one thanking me?

Oh, for HEAVEN'S SAKE, his generation didn't leave it to you, then damn bankers left it to you. PUHLEASE. He was way more frugal than any of us thought about being.

QUIT BLAMING OLD FOLKS, unless you mean the OLD FART BANKSTERS and POLITICIANS.

FYI, my parents built a nice large house in 1965 with custom this and that, and carried a $5000 loan. It helped that a contractor friend built the house. Sold it for cash last summer and paid cash for a condo. They've never, EVER owned a brand new car in their lives, and they do not carry any balance on their credit cards. THIS IS NOT THEIR FAULT. Oh, and Dad's a notch baby, to boot.