January Financial Fitness Challenge�The Great Recession is a Teacher
Susan Tiffany, CCUFC
"Well, you know, she grew up in the Depression."
You've likely heard that said about someone. It's a kind of forgiving acknowledgment that a person who grew up in that long ago time of deprivation can be excused for being a bit obsessive, say, about using leftovers past their prime.
It makes me wonder if our descendants might say of us: "Well you know, they lived through the Great Recession."
Only time will tell just how our habits are changed for the long haul by the experience of this serious recession. As the recession eases, more in some parts of the country than in others but gradually easing nevertheless, will we revert to the bad old habits that got us here in the first place? Or will we move ahead fortified with new and better habits?
It's tempting after all, when you've scrimped and saved for months, to loosen the reins and indulge in some good old-fashioned spending. And that's how a recession ends�consumers start spending again. But there's evidence that many of us have changed habits for the better, and perhaps permanently.
Less is more
The New York Times reports (Jan. 3, 2010), "Quietly but noticeably over the past year, Americans have rejiggered their lives to elevate experiences over things. Because of the Great Recession, a recent New York Times/CBS News poll has found, nearly half of Americans said they were spending less time buying nonessentials, and more than half are spending less money in stores and online." The poll results cut across age and salary ranges.
The Times article continues to say that, in addition to working longer hours, we diverted our time to other pursuits such as spending more time with family and friends, gardening, cooking, reading, watching TV, and enjoying other hobbies.
Time-use surveys from the Department of Labor reflect the same trend: Compared with 2005, we spent less time in 2008 buying goods and services and more time cooking or taking part in "organizational, civic, and religious activities." Attendance climbed in 2009 at museums and cultural events, for example. Even at Disney theme parks, attendance was up while product sales declined.
The theme seems to be "less spending, more experience." All in all, not a bad outcome to a financial crisis.
Keep up the good work
The beginning of the new year is a good time to decide what recession-born habits are worth keeping and refining as the recession eases. These might be among your personal Financial Fitness Challenges in 2010:
Make the best of your financial resources by using your credit union for all of your financial needs.
Save more for the future�Make saving easy with direct deposit of net pay to your credit union accounts, then use automated transfers to savings to achieve your goals.
Enjoy the present�Identify free or low cost activities in your community and enjoy them with friends and family. That can include volunteer activities that help others and make your town a better place to live, enriching your life in the process.
Spend thoughtfully�When you do spend money, take time to research quality and price. You might save hundreds of dollars a year, for example, by taking just a little time to price insurance coverages to make sure you're not overpaying.
Financial Fitness Challenge
Another happy change for many consumers has been a switch to a credit union from a for-profit banking service. Whether you're a new credit union member or an old-timer, make the best of your financial resources by using your credit union for as many of your financial needs as you can. It's a smart and simple way to get the biggest bang for your buck�for a lifetime.
The people at your credit union bring you this Web site and other tools to help you optimize your financial resources. In 2010, the Financial Fitness Challenge will take a closer look at ways you can make better financial habits no matter what condition the economy is in.
And each month we'll randomly select five winners to receive $50 Visa gift cards; we'll choose each month's winners only from that month's entries, so enter often. Remember to register for the Financial Fitness Challenge.
ST
Susan Tiffany, CCUFC
[email protected]
Published January 4, 2010
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