I'm worried about my kids and everybody else's kids. An Associated Press story reported on the Chicago Tribune stated:
I think I started saving early because my mom always made an example of squirreling away money and doing everything she could to reduce expenditures. We were in plantation housing and poor even though my brother and I didn't know it until we saw somebody's home with white carpeting.
Art grew up watching his parents slave away with their small restaurant/soda fountain/store and making every penny count. I remember how his mom used to cut up cigarette cartons for note cards.
Early in our marriage, we started saving. Art put away a certain amount in savings bonds with each paycheck automatically so we'd never see it. As soon as our kids were born, we started an education account for them. When I started working, Art insisted I save a bit in my 403b (similar to 401k) with each paycheck so I'd never see it either. We also made sure a portion of our paycheck went to charities in gratitude for what we were able to share.
I still remember how proud I was to get my paychecks. I put everything in the bank except for about $300 which I would take out in $10 denominations. I would then spread it out like a fan in my hand to look at it and then dole out allowances for the kids and whatever. I know... it was crazy, but it felt good.
We took trips around the U.S., but not out of country until the kids were 12 and 15. There was such a good deal air fare to England that Art couldn't resist. Art and I never took trips on our own until the kids were in college. We went to a lot of rummage and garage sales for clothing and pinched as many of our pennies as we could. No cable, almost no fancy restaurants, etc.
There's a lot of ways to save and cut costs. We're comfortable enough now that we can afford to take trips and buy whatever we really need, but there's still a worry of something catastrophic happening. You can never tell. You can never really tell.
I am relieved to see our kids following along our footsteps and saving as much as they can as well... at least I think they are. I hope they are.
"Forty-eight percent of all Americans aged 18 to 30 have zero in retirement savings and no access to a traditional pension, according to a GenForward poll by the Black Youth Project at the University of Chicago with the Associated Press-NORC Center for Public Affairs Research."This is really scary. What are they going to do when they reach retirement age? I know it seems far away but most of my readers know how quickly we all get there.
I think I started saving early because my mom always made an example of squirreling away money and doing everything she could to reduce expenditures. We were in plantation housing and poor even though my brother and I didn't know it until we saw somebody's home with white carpeting.
Art grew up watching his parents slave away with their small restaurant/soda fountain/store and making every penny count. I remember how his mom used to cut up cigarette cartons for note cards.
Early in our marriage, we started saving. Art put away a certain amount in savings bonds with each paycheck automatically so we'd never see it. As soon as our kids were born, we started an education account for them. When I started working, Art insisted I save a bit in my 403b (similar to 401k) with each paycheck so I'd never see it either. We also made sure a portion of our paycheck went to charities in gratitude for what we were able to share.
We took trips around the U.S., but not out of country until the kids were 12 and 15. There was such a good deal air fare to England that Art couldn't resist. Art and I never took trips on our own until the kids were in college. We went to a lot of rummage and garage sales for clothing and pinched as many of our pennies as we could. No cable, almost no fancy restaurants, etc.
There's a lot of ways to save and cut costs. We're comfortable enough now that we can afford to take trips and buy whatever we really need, but there's still a worry of something catastrophic happening. You can never tell. You can never really tell.
I am relieved to see our kids following along our footsteps and saving as much as they can as well... at least I think they are. I hope they are.
You and Art are role models for sure and deserve to enjoy your wonderful retirement years the way you are doing. We are also very careful always have a good idea on how much and what we spend our money on, mindful of our kids futures.
ReplyDeleteNice!
ReplyDeleteI worry about this as well. My children are both very frugal, but I see plenty of both their generation and my own(!) who feel they are entitled to the very best of everything right now and don't mind being in serious debt to have it. It is just not how I would align my priorities, but these people are not asking for my advice.
ReplyDeleteIf only we all had followed your example. My parents taught the same lessons but for some reason I was never frugal. Didn't practice it until I married Ron when I was 52.
ReplyDeleteThe one thing you didn't mention was long term care health insurance. I'd like to get some for both of us, but the price is very expensive.
ReplyDeleteI think I grew up as you did. My mother even saved the wax paper from cereal boxes, added coordinating fabric to the waist of my dresses so that I had something to wear as I grew up. We were poor by today's standards but always had food as we grew up on a small farm. My husband and I saved the minute we got jobs and never looked at the money that went out. We also lived overseas for a number of years in paid housing which allowed us to save money as if we were paying a mortgage. Now, like you, we are comfortable in our retirement, which was due to hard work, intelligence and luck.
ReplyDeleteWhen we were first married we set as a goal to save 25% of our income. We did it too. We were both working. First child came 7 years into our marriage and with the second we were comfortable enough for me to stay home and live on one salary. Once girls were in school then I went back to work this time as a teacher and we saved as you did for their college.
ReplyDeleteI don't know where the ethic of saving has disappeared to. We have encouraged our daughters to do it and they are but our economy has become so focused on consumption (bigger tv, new cell phones, eating out) that the idea of saving for the future is a lost idea for many.
Hard work and thrift are two principles many of today's youth seem to be lacking...sadly.
ReplyDeleteI know. I have young family members who have done nothing to plan for their retirement. I didn't do a whole lot but my home and car are paid for and I pay my few bills stress free. Even my modest status will not be for them the way they are going. It is sad. You have done well and should be proud.
ReplyDeleteWe followed your pattern pretty much, and now also are comfortable financially in retirement. I think talking about budgets and costs often with ones spouse is important. In 55 years of marriage, we've never had a serious argument about money. Not many folks I know can say that.
ReplyDeleteA subject I've been worried about for some time. Particularly no college workers who perhaps don't make high wages. I can see how they would sacrifice saving for retirement just to meet the expenses of raising a family.
ReplyDeleteVery good points, you, Art, and your mom are great role models. I also grew up poor and determined a long time ago that I would one day have wealth. Saving money was hard for me to do, because I foolishly thought that having nice clothes, etc. was having wealth. Very wrong thinking, so I spent more than I made and was in debt.
ReplyDeleteUntil I met my husband, who was a saver in more ways than one. Together we built our family and saved, then began investing.
Investing after saving is the next step, I believe, to having a comfortable life.
Congrats on your dedication and your legacy that lives on in your children.
Excellent. I, too, take the money in the smallest denominations and deal out the month's allowances in fives and tens. I think change for a twenty can look like a lot of pieces of currency. Change for a five makes you realize you just used a big chunk of money.
ReplyDeleteThat's impressive. I didn't do all that well. :)
ReplyDeleteI think our days there was no credit cards...I remember my mom had only a Ritz charge acc't about the only store that did those days. Anything big broke the folks had to have had the savings. Even in the 70s credit cards were hard to get, my friends told me that JC Penney's was the most difficult. Then everyone started offering credit cards and that was the beginning of the end for most folks. A lot of us - and still promoted by banks - is that we need credit to get credit such as mortgages. No, having a lot of cash is what is needed. I did do credit cards very badly and now only use debit cards. BTW long term care is frightening. It's at least $10K a month or more at nice places such as Arcadia, etc. Hale Nani charges $400 a day or $12K per month PREPAID. Now THAT is scary. For Medicare to cover one must have $2K in total assets. BB
ReplyDeleteIt's much different than in our day. Most young people today do not have any pension. The percentage of disposable income is much less. I'm worried for them . Yes we did the same as you. we made those ten dollar bills stretch a long way.
ReplyDeleteIt was a different world when we were young. I do hope that our country will find a way to extend Social Security and Medicare for all. But then again, I'm a dreamer. :-)
ReplyDeleteI do believe we will maintain Social Security and Medicare and will move to extending Medicare for all as a single payer health insurance plan for those who opt in. But that isn't enough. Pensions are becoming a thing of the past, and for many people it is almost impossible to save the kind of money they will need in retirement. I fear we will once again face a crises of poverty in the aging.
ReplyDeleteI worried about my son, who was in and out of work, with no chance to save and no pension plan. That's why I am relieved that he now works for the USPS, and I hope he can stick with it, if only for the benefits and pension plan. As a teacher in the state of Washington, Jill will quality for social security and her pension, just as Tom and I have. I don't know what will happen to ma ny of their cohorts.
All those years that we ran out of money at the end of every month while we were raising kids and putting them through college, our contributions to SS and our pensions were taken out of our pay checks. Thank goodness.
We are just going into retirement, I have finished work but my husband is still working. We have health care in Australia but you still have to be in a health fund if you want to get timely treatment. It is very expensive, I foresee that will be our most expensive cost in the future. We have compulsory superannuation so must people retire with some money but not always enough. It is worry.
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