View Poll Results: Who would be better able to save?
She who grew up wealthy? 7 41.18%
She who grew up with very limited means? 10 58.82%
Voters: 17. You may not vote on this poll

better at saving -- poor or rich?

If you had to guess, all other factors being equal, who do you think would be better at socking money away, living frugally and building a nest egg on a mid-range income -- those who had grown up financially strapped or those who had grown up financially privileged? The ones who had learned about financial planning and investing and never had anything to "prove?" Or the ones who had learned the ways to strech a dollar and do without but were tired of always having it tough?
3b (with 3c tendencies) on modified CG

Have any stats to show us which is the "correct" answer?


There are so many variables, it's hard to answer. It totally depends on the parents, but not only learning how to handle money from the parents-learning how NOT to handle money would have an effect, too!
The pews never miss a sermon but that doesn't get them one step closer to Heaven.
-Speckla

But at least the pews never attend yoga!
Have any stats to show us which is the "correct" answer?


There are so many variables, it's hard to answer. It totally depends on the parents, but not only learning how to handle money from the parents-learning how NOT to handle money would have an effect, too!
Originally Posted by NetG
No, I really don't have the answer. I'm just trying to forma very general hypothesis. It really could go either way. I have a friend who grew up in a single-parent home without much money. And without any real external motivation, she manged to save $50K in 3.5 years on a $45K a year job. Not by investing it in any kind of plan or building a portfolio, but just by not spending. And I'm just wondering, if I wanted to teach young people from low-income households how to save and invest, how would I do it?
3b (with 3c tendencies) on modified CG

Ah.

I really have no idea.

My brother is HORRIBLE with money, and I'm a saver, so even with the same upbringing that doesn't necessarily tell you anything. IT's a good thing to try to learn/teach, though!
The pews never miss a sermon but that doesn't get them one step closer to Heaven.
-Speckla

But at least the pews never attend yoga!
Banned
Join Date: Jun 2001
Posts: 41,043
Ah.

I really have no idea.

My brother is HORRIBLE with money, and I'm a saver, so even with the same upbringing that doesn't necessarily tell you anything. IT's a good thing to try to learn/teach, though!
Originally Posted by NetG
Ha...NetG same here...wild...
I bet he's got a golden penis too, right? lol
Ha...NetG same here...wild...
I bet he's got a golden penis too, right? lol
Originally Posted by WileECoyote - Daddy's grl
Not really.

If anything I'm the favorite because my parents can count on me if they need anything. Growing up, when we'd go out our dad would give us money, and I always returned my change and he never did. I could have kept the change, too, I suppose, it just didn't seem right. And our adult lives show the same.


He is my aunt's favorite, but she claims it's because she was there when he was born.
The pews never miss a sermon but that doesn't get them one step closer to Heaven.
-Speckla

But at least the pews never attend yoga!
I'm a reformed spender

I grew up in a financially secure, upper middle class environment, although not what I would consider wealthy. I really didn't know much about financial planning or saving or any of that.

When I got out of school I landed an extremely well-paying job and was getting big bonuses and big raises. I spent like crazy, buying expensive furniture, taking nice vacations, having a sweet wardrobe etc etc. And my financial situation changed for the worse, I really didn't know how to reign in my spending to the level where I should've kept it. To make matters worse, when my marriage dissolved, my ex stuck me with lot of debt and really screwed me over, money wise (jerk).

Fast forward to now, I've managed to completely change my spending lifestyle. I eliminated nearly all my debt (I only have a few thousand dollars left of student loan debt, which I could pay off right now if I wanted to), I have my own money in the bank and in an investment portfolio and we're also saving to buy a house. My SO and I have both short term and long term financial goals and we try to live a relatively simple lifestyle (as much as possible in NYC) to meet our goals. I'm lucky that he earns a very good living and can support the household while I attend school and work only part time.

I'm one of those people that always has to learn things the hard way and it took being broke and in debt for me to change my spendy ways (and I still have a fabulous bag and shoe collection hehehe). For me, the key to being able to save as much as possible is building some treats into the budget. We do go out to dinner, we travel, I buy myself presents, but only with the money we've set aside to do so. Without building this stuff into the budget, I think I end up feeling a little deprived and the motivation to save isn't there. We also pay ourselves first -- before we spend any money. We set aside a certain amount, no matter what, for saving and investing. Next, we pay bills. Then we look at our budget, and see what money needs to go where (this includes food money, gas money, household emergency kitty, monthly subway fare, pet food, cleaning lady, laundry, our weekly spending money, whatever). If there is any money left over, this goes into one of the savings or investment accounts.

I've been rich, I've been poor, and let me tell you, being rich is a lot better.

Spiderlashes, I can't imagine how your friend could save that much money so quickly, especially considering her after tax income. What the heck did she live on? That's really impressive.
3A / 2B / 2C wavicelli



I didn't vote because I don't think there's a clear answer to that. I grew up lower-middle class and I save money very well, while none of my friends from the same background save anything.

If you wanted to teach lower-income people how to save and invest, I would start with a few key points:

-Credit...this is a big one. I know a lot of poor people that have fairly good incomes, but they don't understand how credit works or how to manage it. They get into debt and don't know how to get out.

-Living within their means, and learning how to say no to yourself when you want something.

-It's possible to invest with any amount of money. You don't have to be rich to buy stocks or open an MMSA. Too many people stick their money in a checking account and it doesn't accumulate any interest.
I don't know, but I do know that all the Have-Nots that I've ever known spent their entire adult lives trying to make up for it with material goods. You can almost spot them based on the classic combination of a rented apartment and a luxury car. On the other hand, kids who grow up wealthy can have warped understandings of money.
I think this is a hard one to call. I think a lot of rich people are rich because they do know how to save and have done so all their lives. That said, I'm not so sure about their offspring. Sometimes when it is handed to you, you just expect it and don't have the same priorities. On the other hand, I see a lot of "poor" people who are in the boat they are because they think they should spend first and then there is never anything left to save.


But, I am going to give my vote to those who have money. . . usually they do because they know how to save and invest.
3b/c
I think money breeds money.

I grew up comfortable - although my parents grew up poor. They are both terrible about saving to this day. They spend gobs of money on unnecessary things. Hubby and I, on the other hand, are very good about our spending habits.
Better everyone think your a fool, than to open your mouth and prove them right.

Perception is not reality.

http://public.fotki.com/hmiklos
It depends on how you were brought up.

I could see both categories being very bad at saving. Those without much money would have grown up living paycheck-to-paycheck, so there would never really be enough to put away and save. Those with tons of money would have had all they wanted, so there would never really have been a need for them to put some away and save.

But I could also see both categories being very good at saving. Those without much money could have been taught that if any extra money is received, it's important not to spend it needlessly, but put it away "just in case," because you don't know when you'll get extra money again. Those with tons of money could have been taught how to budget a large finance wisely-- investing, saving, spending, in good proportions.

And not just whether or not their parents taught them about money, but what their family's attitudes were growing up. Did those without much money have the attitude of resentment at having less, or the attitude of being careful and thankful for what they have? Did those with lots of money have the attitude of entitlement and excessiveness, or the attitude of living comfortably without financial worry but in moderation?

I really can't make up my mind on a category to vote for!
Previously Joy4ever.
Changed because the "number in place of a word" thing was bugging my no-longer-14-year-old self.
Hi - I had to re-register for some odd reason. Anyway, I'll chime in. I grew up fairly weathly. Because I grew up in an area where everyone was kind of the same financially, I had no idea the extent of it until I went to college, and even moreso when I started supporting myself.

I don't think my parents meant to shield me from financial issues - it just worked out that way because there weren't any issues...everything always worked out. I knew both my parents had really good jobs, I knew we had nice things and cars, I knew we got great vacations, boats, lake houses and condos and I knew my dad invested - only reason being that we listened to Bob Brinker "Money Talks" every Saturday and Sunday broadcasted through the entire house. That's what I knew.

Fast forward to about age 21 and I met my husband. My husband, who was raised in a single parent family home (nothing wrong with that!), COMPLETELY supported himself and basically his mom left him to support himself and and moved to Fla when he went to college. Anything that man has, he's provided for himself - first and only person in his entire extended family to graduate from college.

He taught me a LOT and honestly, thank God, because I needed to learn. One of the biggest eye opening experiences for me was learning the value of long-term planning. I was very used to instant gratification - not only was that not going to happen anymore, but getting used to slow moving, long term goals was weird.

My husband is not a spender (very low maintenance) and is naturally a saver, but there is a difference between being a saver and being a smart saver. My dad is really smart with money and I consider myself his protege - he's a wonderful guide and he says I'm a wonderful student. But the only reason I know how to invest our money now is because I FORCED myself to learn...and to understand what I was doing. It was not proactively brought to me - I asked.

Because of my background, I see the potential in being smart with money. But also because of my background and being protected, there were a few years in there, we'll say from 22-25, where I really didn't understand the value of a dollar - or how important $20 here, $20 there was.

Now, I feel really good about having all this knowledge in my back pocket - and the fact that I understand it and can make good decisions. God forbid if anything ever happened to my husband, I could pick up my life (financially and logistically) without skipping a beat.

So, to answer the original question, I think that wealthy kids are not the better savers....but if you have drive and force yourself to learn, and you see the outcome of it because you grew up that way, you'll learn quick and effectively. But there will always be the other half of kids in that group that go on with their lives to do nothing and make poor financial decisions.
And I'm just wondering, if I wanted to teach young people from low-income households how to save and invest, how would I do it?
Originally Posted by spiderlashes5000
For me, I HAVE to understand what I'm doing. Perfect example, when we bought our first house, we were learning about escrowing taxes. I asked a question on this board and one of the peachy NC members told me that if I can't save enough $$ for my taxes, I shouldn't be buying a house. Um, ok.

I just need to understand the way - I can't handle making financial decisions based on how everyone else handles things. Even if EVERYONE escrows their taxes, and even if it is the right thing to do, I need to understand it so I can make an educated decision based on our situation.

So I think merely understanding the different methods of saving is huge.

And by the way, we do escrow our taxes.
It depends on how you were brought up.
Originally Posted by Joy4ever
And once the "grow up" part is over, it depends on the other people that touch your life. Hopefully you come across a few really smart, down to earth ones.
Joy,

You are a very smart woman.
Originally Posted by Chocolate Curls
Thanks!
Previously Joy4ever.
Changed because the "number in place of a word" thing was bugging my no-longer-14-year-old self.

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