By James B. Ewers Jr. Ed.D.
The O’Jays were a popular R&B group some years back. They had several hits and were fan favorites. We know the lyrics of some of their tunes whether you are old school or new school.
“I know that money is the root of all evil. Do funny things to some people. Give me a nickel, brother, can you spare a dime? Money can drive some people out of their minds.”
These lyrics should take some of us back when the song, “For the love of money” was a hit record. We can only speculate how this song came to be. Was money flowing freely into the economy during this time?
We can come up with a variety of answers. What we do know is that money has always been needed for us to have a decent quality of life. We are doomed without it. You can also say that some people are doomed by it.
I don’t remember when money started to have any importance to me. My parents provided for my needs, so my pockets were pretty much always empty. I didn’t get an allowance. Quite honestly, kids in my neighborhood didn’t receive an allowance.
The word “allowance” didn’t make its way to the East Winston section of Winston-Salem NC. We made our beds, washed dishes and other chores as required. We were not paid for things we were supposed to do.
We never complained about not having any money. That was just the way it was. All that mattered was that we were happy and we were.
It must have been during my high school years that I had a job as a substitute paperboy, so I was able to earn a few dollars. During my college years, I was able to gain a few dollars, so I wasn’t pressed for money.
The American economy is spiraling these days. It has created a system where some people have money at their disposal and others do not. Saving money is challenging and must be carefully thought out.
Saving pennies early in life will result in your spending dollars later in life. I was fortunate to be around people who understood how to save money. My first financial planner was my dad. He gave me a few tips on how to budget and to save some money. Those free lessons gave me a financial blueprint.
Now if you are in this new generation of workers, are you saving any money? Do you have a retirement plan? Are you living below your means? If you are then, congratulations. Keep doing it because it will pay off.
Reports say that folks, ages eighteen to twenty-four, are saving at a good clip. Fifty-eight percent of Gen Z and fifty-four percent of Millennials are saving more of their money.
It appears they are denying themselves fine dining and are not shopping at high end stores. They are putting money away using 40 K accounts.
Credit cards have been a deterrent for some in saving money. Those have been a temptation to all of us, regardless of age. They show no partiality.
Those in the age category of forty-five years to sixty years have a credit card debt of roughly $9,600.00. Those in this age group care for both their children and their parents’ surveys say. Millennials on the other hand have a credit card debt of slightly over $6,000.00. We have seen credit card interest rates increase dramatically over the past several years. This trend in my opinion will continue.
Our credit scores are important financial tools. Keep a good one and you will receive the best rates and perks. If you are unsure about your credit score, then ask a financial planner for advice.
Money management and saving money are tied together. Understanding how to navigate them will ensure that you will be able to save some money over time.