Back in the good old 1920’s, America, along with the rest of the world, got itself into a fun thing called “The Great Depression“. For those of you who haven’t taken a U.S history class, the Great Depression was an economic depression that had devastating effects. It began after the stock market crash of October 1929, and soon enough by 1933, 13 to 15 million Americans were unemployed. While thankfully (and arguably) our economy has now turned around, the reasons behind the crash have not. During the ’20s, the economy was booming. People gaining the ability to buy on credit and installment did not help. As they bought more and more things they couldn’t afford and put it on credit, no one thought about the future. Rising debt led to more bankruptcies, and a spiral reaction was created, resulting in the stock market crash.
While today we are a little more familiar with the concept of credit and saving money, using money wisely is still a huge issue with adults and teens alike. People want to buy the newest everything, regardless of how much it costs. Instead of saving their money, or spending it on things of value, many would rather spend their paycheck on expensive clothes or gadgets. While this might not seem like a problem, it is.
Saving money is hard. There are a million tips and tricks on the Internet, but at the end of the day it is not easy. It is always tempting to buy instead of save. However, this is not the smart thing to do. There will come a day when you will regret spending that money on shopping, rather than saving it to spend it on a new computer. The long term benefits to saving simply outweigh the short term losses. We seem to have not learned anything from the issues of the 20s and that needs to change.