Why Can't Americans Save a Dime?

[britbird 4]

I'm pretty lucky...husband has savings and stocks, we both pay off our credit cards each month and the only debts we have are student loans (which really don't count so much...the payments are so small)

We had to cut back a little when I couldn't work, but we didn't get into debt over it.

[Hilarious Clinton 452]

Has anyone else been watching the oprah special shes got going on about debt?? the Debt Diet! and I thought I was bad..... How can you make over $100,000 a year and be over $200,000 in debt??? If me and my husband made half of that, we would be out of debt in a year!

The more you make the more you spend. Not 100% but up there.

[irishgirl73 0]

I think Verizon may go out of business when Gavin gets here-I know I take care of at least a few salaries

Seriously, I'm not worried about "affording" Ewen at all...I swear that paying for things until he gets a job here will be cheaper than trying to maintain a LDR!

I agree completely

For the first time in 2 years-I don't owe verizon anything, but my bill averages about $250 a month...............we should have no problem saving a few bucks a month!!!!

[Miranda&James 8]

You know what? It's a failure all around. I'll tell ya why.

My first year in college, there were these scouts on campus with clipboards giving away a free gift to apply for a Burdines (now Macy's) credit card. No history needed! Woohoo!!! I was not allowed to work in high school, so I never had my 'own money' as far as other than my allowance, which was huge, but not the same thing as not having to justify what you want to buy. This credit card called out to me 'this is your independance calling!!!'

Then you get one, and then another one gets mailed to you, then another, then another....I found myself at 17 with 18 credit cards....all with balances on them. I happen to be a very generous sort, and Christmas came around, so I splurged on my friends and fam. Well, of course I spent a bit on myself too, hahahaha. My mom, seeing all these bills come in...said 'hang on a sec' and sat me down & showed me how interest accumulates. Showed me how by paying minimun payments, I'd get outta debt in like over 10 years or something equally ridiculous! She put me on a schedule, I paid off the bills, then cancelled the accts.

If my mom hadn't taken that time with me, I have no clue where I'd be financially now.

Now, why can't home economics in high school teach you things like this? Or how about how to balance a checkbook to the penny? Many of my friends have no clue the exact amount in their checking accts. How about how taxes work, or the basics of having a 401k? I understand it's cool to learn how to bake a cake and sew pillows, but I think clueing in our youth as far as the hidden dangers of credit card debt....and trying to change the rationale of 'I can afford the payments'...are far more important & vital & are necessary tools for success, imo.

Just yesterday there was a little paper on my car telling me I could get a free 12 inch sub combo at Subway if I participated in a "promotional offer" (aka sign up for a credit card). They did this at Quiznos awhile back and when I worked at the front desk of the dorm I saw so many credit cards piling in, and probably a lot of potential debt as well. It made me SO mad to find that on my car, because they are pulling in students with free food (and every college student wants free food) and then saying here, have a credit card, ruin your life! I was so mad I almost went into Subway and complained that they were promoting this.......

[almaty 19]

we are in the process of gettingall our debts paid..house it paid for..working on my truck..in less than 4 years no debts except daily expenses....got to get ready for retirement...

[britbird 4]

Just because you get a credit card doesn't mean you have to spend any money with it...I think people need to stop blaming the credit card companies and start taking responsibility for their spending habits. If you don't want the credit card then don't use it and cut it up, no one is forcing you to spend money on it.

[charmac7 4]

I think as parents it is our duty to teach our children how to manage their finances.....not just the credit cards etc.....but also savings....when both my kids were through school and working I sat them down and showed them by investing as little as $25.00 a month in a retirement plan now while they were 20 just how much they would have by the time they were ready to retire....both of them started and after a few months didn't even notice the $25.00 a month and are both have uped the amount they put into it. My daughter also has started investing in savings bonds.

Most banks (here in Canada) will give you a chart of how much a monthly contribution will earn in a registered retirement savings plan by the time you reach retirement age....it is a great incentive to get the kids saving early.

Char

[Kajikit 65]

We have no credit cards and no 'new' debts but enough old ones to keep us poor for the rest of our lives just with student loans and car payments and old debt... we WANT to save but somehow there isn't ever any money to put into the savings account We were counting on a nice juicy tax refund to start our savings account, but alas we're not getting one! That was a nasty shock...

[DouglasSheridan 1]

One word: Immigration. We had plenty of money saved before Javier was out of work for 6 months. Plus all the fees and trips to Mexico to see him while he was there. Maybe since he is back we can get caught up again.

Did anyone mention phonebills?

I saved up a nice $400+ a month until I met Doug. We ended up spending a nice amount on phonebills, sums that would have bought us a few extra tickets over, for sure!

[Mr. Big Dog 10,747]

Just because you get a credit card doesn't mean you have to spend any money with it...I think people need to stop blaming the credit card companies and start taking responsibility for their spending habits. If you don't want the credit card then don't use it and cut it up, no one is forcing you to spend money on it.

[Sister Fracas 5]

Has anyone else been watching the oprah special shes got going on about debt?? the Debt Diet! and I thought I was bad..... How can you make over $100,000 a year and be over $200,000 in debt???

I'm not watching the Oprah special, but I don't mind watching shows like that, because it makes me feel a hell of a lot better about the tiny (in comparison) amount that I have in debt. Some college loan and some credit card and even when I think eeeek, how much longer for this loan, it's good to know that I haven't gotten anywhere near in debt the way it's possible to. I don't know how people live day in and day out with such debt. When I was worse off, it just made me sick worrying all the time.

But as to being married....we are saving MORE now...

woohooooooooo!!!

Edited March 8, 2006 by Frances

[m_and_m20 0]

Just because you get a credit card doesn't mean you have to spend any money with it...I think people need to stop blaming the credit card companies and start taking responsibility for their spending habits. If you don't want the credit card then don't use it and cut it up, no one is forcing you to spend money on it.

I totally agree that it should be each persons responsibility!!! but unfortunately, most people (and i am including myself) dont realize that until all of the debt has piled up and not enough income to pay them all!

[kaydee457 13]

The more you make the more you spend. Not 100% but up there.

Not necessarily...If you're born poor you'll always 'think' poor regardless of how much money you make or have.....

I own my home, cars, have no debts credit cards or mortgages or otherwise and make very good money.

I have substantial savings....My only liabilities are my property taxes and personal income tax.

Some of you younger folks will achieve the same in your lifetime. Ask me; I never thought I would acquire such wealth when I was younger.....

[Hilarious Clinton 452]

The more you make the more you spend. Not 100% but up there.

Not necessarily...If you're born poor you'll always 'think' poor regardless of how much money you make or have.....

I own my home, cars, have no debts credit cards or mortgages or otherwise and make very good money.

I have substantial savings....My only liabilities are my property taxes and personal income tax.

Some of you younger folks will achieve the same in your lifetime. Ask me; I never thought I would acquire such wealth when I was younger.....

Ummm. that's why I said "not 100%".

[MrMrsKnight 0]

David and I control our money really well I think. We buy a lot of stuff that we don't need..... like dvd's and guitars and ice cream But just a few days ago we decided to save for our trip to Ireland and already have almost a thousand saved up for that.

One good thing about being us is that his brother bought a house a few years ago when he came home from college and so David moved in with him. When we decided I'd move there, his brother let us "have" the house and live there for as long as we wanted (he's 34 and went back to his parents' house..... I doubt he'll ever get married.... but he's such a nice guy though). Which is good because we won't have to worry about rent and morgage for a long time. We'll buy our own place, of course, but that gives us some time to take it slower and plan everything better.

So the only worries we have are the normal bills like groceries, gas, eletric bill,no phone bills because we only use the internet..... and the immigration fees, which seem to the the worst!!