'Why don't Americans save more money?'

Those $1,000 wedding photos won't take themselves. Who cares if you need to cash for an emergency fund? /IndianaSobStories

 

There was another thing making the rounds recently regarding some relatively successful writer who opened up re: his finances. I felt bad for him until he mentioned raiding his 401K to pay for his daughter's wedding ...

On edit: Here's the link to the article ... The Secret Shame of Middle-Class Americans Living Paycheck to Paycheck

 

I have no credit card debt. It's the best revenge.

 

I'd like to see some data on how much the middle class spends on food, compared to yesteryear. We do some searching for sales, but not at the expense of Mrs. Whitman's organic choices. Even if we didn't eat almost exclusively organic produce, milk, and chicken (she has largely given in on other items like Cheerios and some others staples), our grocery bill would still be astronomical, I think, compared to yesteryear. Mr. Whitman's steaks, craft beer, and bourbon, in fairness, pad the bill, too. But even without those indulgences, there is no way people used to spend this much on food.

 

Three of my neighbors in our little cul de sac have completely paid off their homes. The same type of home I paid in the upper $300s for a few years ago.

I can't imagine life without a mortgage payment, and what I'd do with all of that money. And, funny enough, my neighbors never do shit except stay home and work on their houses.

 

I think a lot of these articles rest on a pretty shaky foundation, namely the notion that this is a relatively new phenomenon. It's been going on a long, long time. My old department chair, now in his mid-70s, once said that when he was in his 50s (well into his academic career and after a pretty good run of it as an engineer in the defense industry) he finally felt he'd arrived at a position of financial security because at long last needing four new tires wouldn't cause a family crisis.

I don't remember any deprivation as a young kid, but I do remember the time my very young parents got in the mother of all arguments over a quarter. That's how much they had left over after all the weekly bills had been paid and the week's groceries bought. The quarter would have allowed my father to get a cup of coffee out of the vending machine while he was on break. It would have allowed my mother to buy the thread she needed to finish some dress she was working on.

 

I read through the thread and saw only passing mention of one thing that destroys saving -- having children. Both parents work? My son's daycare back in the '80s was more than tuition at the state university. No day care loans I know about. That's just for openers. Kids are very expensive, more than worth it, sure, but unless you're making serious, serious money unavailable in journalism, it's hard to give them a decent shot at life and save for your retirement.

 

Day care for both of my kids, five days a week, would cost about $2,400 a month. And that's a "friend" price.

 

We pay my aunt $250 a week to watch the 3-year-old.

 

Creoste nailed it on houses and kids. We don't really strive to keep up with The Joneses but many in my city do.

After oil crapped out and the job losses hit there were a lot of upper income sphincters tightening in my neck of the woods. The local community Facebook group had all kinds of hockey tickets from season ticket holders for sale this past Winter and the amount of designer purses, handbags and other luxury items being sold boggles my mind. I know it happens but paying $800 for a pair of shoes seems so outrageous to me.

The story that made the rounds last year was seeing Mercedes at the food bank. The outrage was off the charts.

We stretched for the mortgage on our house and it won't be paid off until I retire. Anyone with kids knows the expense for basics involved, throw in Summer camps, soccer seasons and the $ flies out the window. My 4 year old wants to play hockey and the horror stories around cost on that have my wife and I shivering.

All that being said we consider ourselves pretty fortunate but it would be nice to have a little more breathing room between pay cheques.

 

We're getting one boy out of private kindergarten and into public school starting in the fall (so his tuition ends in a month or so). His little brother starts public kindergarten a year later. While it won't entirely end our spending on their schooling for now (still need an after school program), we are giddy at the money that we're not going to be spending.

 

Now you tell me.