The (Un) Evolution of Saving

Mankind is always evolving. You don’t have to compare us to the cave man to see it. The automobile gave us a better way of transportation. Computers have sped up many of our daily tasks and advances in medicine make us live longer. All of these things are part evolution. Evolution should be about finding a better way. Sometimes, however, evolution takes a step back.

I’m 32 years old. For the past year, I’ve been writing a monthly article for Mommysavers.com. I’ve learned a lot doing this and really enjoy it. The best part has been the financial insight I’ve gained by getting to know the people of our generation. One area concerns me, and that is that I don’t see our generation saving like they should.

Saving has always been a part of our evolution. You don’t have to go too far back in history to find saving being a critical part of survival. I live in Minnesota. For those of you not so fortunate to experience winter, today it is -10 degrees Fahrenheit with a wind-chill of -40 degrees. I have about two or three feet of snow in my yard with some drifts probably five feet deep. 150 years ago, saving would have been key to my survival. If I didn’t chop and save enough wood for the fire I would freeze. If I didn’t save any feed for my livestock they would die and I would starve. That was the harsh reality. You saved to survive.

Now look at our parents’ generation. They didn’t have the worries of 150 years ago. Saving wasn’t life or death, but they did need to save to purchase things. Credit cards weren’t a part of their lives. Houses and cars required downpayments. If you wanted furniture or some new clothes, you paid cash or you went without. You needed to save for what you wanted. There wasn’t the instant satisfaction of today’s credit society. Your parents and certainly your grandparents had lived through the depression. This experience taught them the importance of saving and equally, the importance of living within their means.

Then came our generation. We’re a consuming generation. If we can’t pay for it now, we’ll charge it. If we don’t have the cash for a downpayment on a house, we’ll just borrow the entire mortgage. If we can’t pay for that new furniture, we’ll just make 36 "easy monthly payments". If our credit card is maxed out, we’ll just fill out one of the many applications we all get daily in the mail and get more credit. It seems that our generation is living for today with no thought for the future. The reality is that living this way eventually catches up with you.

Many people are caught up in our consumption generation. They have all the toys, new cars and a beautiful furnished house. From the outside, they look like they have it made. But, that may not be the case. Many of these people are living paycheck to paycheck with very little left over to save. Their entire salary goes to support their lifestyle. This is fine if the paychecks are there, but what if they stop? What if they are laid off or become disabled? Or, what will they do when they retire? This is why saving is so important.

Now I know many of you do save. I also know many of you are living paycheck to paycheck. I don’t worry about the savers. They have a plan and when their children’s college or their retirement comes around, they will be ready. For those of you not saving, it’s time to examine your lifestyle and your priorities. Living for today is fun, but doing so with no regard to the future is foolish. Everyone of us should have a savings plan to meet our goals. Our parents and grandparents did, and so did the Minnesota farmer in 1850. His life depended on it. Yours may too. There may come a day when you need to take care of yourself and all you will have is what you have saved. It’s not your employer’s problem, it’s not the government’s problem, it’s your problem.

Evolution seems to have taken a step backward with our generation in regards to saving. The wonderful thing about evolution though is that it is constantly changing. Our generation, and you in particular if you’re not one of "the savers", can help change this trend. Make a plan, live within your means, and save for tomorrow. You will never regret it.

About the Author: Scott W. Danger is a certified public accountant with over 15 years' experience. He lives with his family in Southern Minnesota.