"Money File"-Cashing In On Saving
Wednesday, May 24, 2006LINDA O'BRYON: In the "money file" tonight, to spend or not to spend when it comes to spending a lot of cash. Here`s Chuck Jaffe, senior columnist at "Marketwatch".
CHUCK JAFFE, SENIOR COLUMNIST, MARKETWATCH: My daughters are big fans of a television show dedicated to completely over-the-top sweet 16 parties. Thankfully, my girls recognize the ridiculous excesses of greedy, spoiled kids and outrageously indulgent parents spending gobs of money for a little bit of personal glory. But there is little doubt that many people, both children and adults, feel entitled to things that are excessive, if only to keep up with the neighbors or the people they see on TV. The result is spending beyond their means.
Forget the six-figure parties that are the subject of the silly TV show. Consider that the Conde Nast bridal group just released a survey showing that the average wedding in America now costs $28,000, a 100 percent increase over the last 15 years. I`m not going to suggest that people shouldn`t celebrate a marriage or even a sweet 16, but rather that they keep things in perspective. At 28 grand, the average wedding is equal to about nine months of pay for the country`s median household. It`s a pretty nice down payment on a house. And while wedding memories may last a lifetime, squandering the chance to put a roof over your head can impact your finances negatively for just as long.
In a nation that glorifies profligate spending, smart, savvy choices are tough to make. Over years of talking with consumers, I`ve learned that people who make budget conscious, frugal, but not cheap decisions, they have no regrets, while people who blow big wads of cash tend to learn the lesson that the glory of excessive spending is both fleeting and financially dangerous. I`m Chuck Jaffe.
