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Healthy You Archives |
Caring for Mind and Body
Dust Off That Piggybank
Getting a Good Head StartEmmaus High School students learn financial literacy from Sandra McKinney (center) of the Pennsylvania Center for Financial Education. The students (l-r) are Emily Montanye and Ashley Aleszczyk. The Center offers money management programs for all ages. For a complete list, call 610-402-CARE. Saving StrategiesPay yourself first—In this classic strategy, you commit to giving piggy the first share of every paycheck. Use “found” money—Put that income tax refund right into the savings account, along with the extra each month from a raise or from paying off your car loan. Even pocket change adds up. Cut your expenses—Instead of stopping at the coffee shop, make your own. You could save $100 a month. Take advantage—If your company has a matching savings plan like a 401(k), contribute the maximum. Why don’t we save?We’re stuck in a consumer culture. “The whole consumer mentality is about spending, not saving,” says family physician Will Miller, M.D., of Lehigh Valley Hospital and Health Network. “If you’re not constantly seeking more, you’re made to feel inadequate.” Credit cards are literally thrust upon us, McKinney adds, and debt carries no shame.We live in a scary world. Our thrifty grandparents lived in frightening times, too, says Miller’s colleague, social worker Gary Stone. “But the Depression and World War II ended successfully. People learned that with hard work, you can overcome great obstacles.” By contrast, he says, obstacles like terrorism seem insurmountable. “For many today, the goal is to protect themselves—hence the Hummer and the big gated house—and live for today, because there may be no tomorrow.” We’re in denial about our health. The experts all warn us to brace for big changes in Medicare and private health insurance, with consumers bearing more of the costs. And they point out that investing in our future health isn’t just financial; it also involves diet, exercise and weight control. Yet our waistlines expand as our savings shrink. We think we’re entitled. “There’s a feeling out there that somehow, everything will be taken care of,” Miller says. Many in the baby boom and younger have little experience with scarcity. We’re stuck in adolescence. “That stage of life,” Miller says, “is all about living for now, taking risks and feeling invulnerable. It adds energy to a culture, but youth-worship in America has gotten out of hand.” Are we happy?“I honestly don’t think so,” Stone says. “So many people work multiple jobs, get worn-out, then run up big bills trying to feel better—and the cycle goes on. They’re substituting things for happiness.” It’s hard to raise a healthy family in a culture with more money than time, he adds. “My adolescent patients are crying out for their parents to take time to just ‘be there’ for them.”What’s the solution?If you feel the need to rethink your financial priorities, here’s how to get started:Sit down and take stock. Ask yourself some hard questions, Stone says: “What gives my life meaning? What am I looking for in the long term? How can I better appreciate existing resources, interests and relationships, and encourage them to grow?” Make a financial plan. Once you know where you’re going, you can map out how to get there. Professional help may be useful. This can range from budget coun-seling (Consumer Credit Counseling Services offers it free) to full-scale financial planning. “Ask around and make sure you have a planner who’s focused on your best interests, not his or her own agenda or products,” McKinney says. Toss the credit cards. “Credit card companies can hike your interest rate to nearly 30 percent if you miss payments, and you have no control,” McKinney says. “Keep one card and pay it off fully every month.” Don’t bet on being taken care of. Company pensions are an endangered species. The average Social Security benefit today is just $922 a month, and the program’s future appears shaky. As for that promised inheritance, McKinney says, “studies show that as older people live longer, they have to spend down their assets.” Use saving strategies. Besides the classic techniques (see below), be creative about what will motivate you to be a better saver. Miller and his family have a “dream fund” for special opportunities like trips. The benefits of becoming a saver go far beyond the financial. “We learn best through role models,” Stone says. “As your children watch you build equity, they learn the value of that and how it can improve their own future.” “You’re building abundance,” Miller says. “In a fear-driven world, we tend to believe in scarcity, not enough to go around. But the great spiritual traditions all teach abundance.” Accept the possibility of that, and saving becomes an act of joy.
Want to Know More about saving strategies? Click here for a list of resources to help you manage your money or for information about financial literacy. This page last updated 2/12/08 04:08 PM
ARTICLE TOOLS:
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 July August 2005 Eating Healthy
Staying Fit
Caring for Mind and Body
Just for Women
Just for Men
Raising a Family
Heart of Healthy You
Protecting Your Health
Coping with Illness
Aging Well
Keeping Up to Date
Weight Control
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