Nymeria said:
I don't disagree, it is more a "Walk before you run" trying to help people plan finances. When someone never saves it is an accomplishment to get them to set aside even $10 a week for starters just to get the idea in their head. As a culture we are just not good at it, which is why many companies take the money out of the paycheck for retirement plans. If it was something people had to pay into on their own, they wouldn't do it nearly as much. The challenge is balancing what is right in front of someone and what is long down the road over the horizon. For example, in the US when you buy a home can pay for it over 15, 20, or 30 years. What is the most popular? 30 years, because it allows for the lowest monthly payment. Of course in the long run it costs tens of thousands of dollars more in interest payments, and you'll be paying it off right up until retirement. Your 20s and 30s set your financial life for most people. With proper planning you don't need to sacrifice much and will be set in your old age. Every stumble such as forms of debt, interest, and penalties puts you in a deeper hole. I foresee a lot of people having to work until the day they die due to poor planning. |
The issue though is that the minimum wage is actually lower than the costs of living, so millions of people aren't even able to make enough money for the bare minimum, let alone even thinking about saving money:
