There was a time when savings used to refer to the amount of money you had accumulated, and you bought only what was needed when you could afford it. The older generations may remember the days of a ‘rainy day fund’, but the rest of us have grown up in a deceptive, instant gratification culture of spend now and pay dearly later.
Clever corporations have commandeered and redefined the word savings, tricking unwitting consumers into spending money they don’t have on things they don’t need. These companies achieve this mental manipulation with clever and excessive advertising, so the customer focuses on how much they are ‘saving’ on their purchase instead of what was actually spent.
Since this new definition of the word savings has been subliminally drilled into consumers heads for so many years, they don’t realize they are doing the opposite of saving money – they’re spending it. These people are taking on more debt than ever with nothing set aside for the future, and some are getting dangerously close to the point of never being able to recover financially. People spending beyond their means also has another hidden cost to everyone, they are artificially increasing consumer demand for products by spending money they don’t have, which in turn increases prices for these products.
This trend of mindless consumerism is preventing people from saving for things that could really benefit their lives, such as:
-Financial preparedness for emergency or disaster
-Home or vehicle purchase and maintenance costs
I suppose one could argue, that with today’s low interest rates, a 50% savings sign looks a heck of a lot better than the measly .5% that the bank is willing to offer on a savings account.