Thread: Are You Good With Money?

So I've been living in Japan for about 6 years now. When I came, I had nothing except craploads of debt...which I started to increase with my nice new Japanese credit card.

I am, and have been for years, terrible with money. Just aweful--spend it as soon as I get it, and when people gave me access to money I didn't have, I used that too. In college it was ok, my folks helped me out, but then when I got a job and stuff, I was constantly on the borderline--overdrafts and late bills were the norm.

I didn't mind, really. I mean, I was never hungry or anything, and I knew it would get better (it didn't), but looking back now, I think I am lucky I didn't utterly ruin my life.

The thing is, I was not that different from anyone I knew then. A few of my friends were good with money, but most of us were the same. And I don't think it's that rare--I was listening to a podcast of Fresh Air form NPR the other day and it was about how to choose bank accounts based on their low overdraft fees and the possibility to PREVENT overdrafts by cutting you off early. Not financial advice like "save, keep track of your spending, etc." but "Make sure the bank won't let you overdraft, because otherwise you will." So, perfect for me in other words.

However, something happened to me to change everything: I married a woman with a head for numbers. My wife has an associate's degree in bookkeeping, and has done semi-pro accounting work for years. She didn't have any savings when we got married, as she had spent all of hers on her family, but watching her with money is like watching magic.

IN THREE YEARS, we have paid off all of my debt, almost paid off a car, and put more money in the bank than my parents ever had (my parents are probably the source of my spending habits...)

Now, we do both work, and there are no kids in the picture, but the vast majority of our spending power comes from the simple fact that my wife 1.) knows how to budget, 2) KEEPS to the budget and 3) values savings more than credit.

That's it. We don't buy on credit. We have a credit card, sure, but we ALWAYS pay it off, every month.

And this is NOT at all unusual in Japan. There is a VERY small poor class; there are homeless, sure but let me put this in numbers: By the age of 24, it is not at all unusual for a Japanese person to have saved over $10,000. The average Household savings rate in 2006 was 27%. 27!!! In the US, it was right around 2%.

Why is this? Why don't Americans know how to save?

Can you save? Do you save? I am really curious as to why this might be, in you guys' opinions...