Our grandparents earned much less and saved much more

The difference between the financial behavior of the past generations and the current ones is a topic of growing interest. One frequent observation is that our grandparents, despite earning significantly less, had a much higher savings capacity than we see today. There are several reasons for this disparity and understanding these factors can help us to adopt healthier financial management habits, adapted to contemporary realities.
- Lower cost of life
Although wages were lower, the prices of essential products such as housing, food and transport were also much more affordable.
- Simpler lifestyle
Previous generations tended to lead a simpler, more lowkey lifestyle. There was a greater focus on basic needs, rather than wants or luxuries. In addition, there was a culture of repair rather than replacement. When an appliance or piece of furniture broke down, it was more common to try to repair it rather than buy a new one.
- Less social pressure and consumer status
In previous decades, there was less pressure to maintain an image through material goods. Although social status has always existed, it wasn’t as tied to ostentatious consumption as we see today. Social media, advertising and digital influence have created a consumer culture where “having” often takes precedence over “being”, leading to excessive spending and a reduced ability to save.
Read more on JoiaPro 98 magazine.
8 de January, 2025
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