NJ5 said:
@HappySqurriel: I totally agree... In my family, no one uses credit cards as debt, debt is reserved for buying a house (not even a car).
Even with this philosophy, one can still spend money on lots of discretionary stuff... it just takes a few years to ramp up savings so that you have a safety cushion, and then you can have a lot of stuff without putting yourself in financial danger. You can even start spending right from the point when you have a job, it's not that hard to save 10-30% of your paycheck every month while still having a great life.
I think in Europe, people have always saved more money than in USA, but in recent years there were more and more people starting to take up a lot of debt... I'm sure that as you say, this recession will teach a valuable (but sometimes painful) lesson to many people.
People in USA who were or are now poor will have even more pain than in other places, as the comparatively low US taxes mean that states are having a hard time providing welfare... if I understood correctly California is issuing IOUs instead of cash to welfare recipients.
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Hey it's the same in my family. Crazy.
