Don’t be penny-wise and pound-foolish
Money Smart Week hones in on those impacted by pandemic.
The retired church pastor had to cut back on his casino gambling during the pandemic.
“I have over $6,000 in a safe at home … money I always used for gambling,” he told me.
“It’s funny, I miss the casino boats a little, but I sure love the fistful of money I have now. It’s a good feeling to have money in the bank. I wonder if others did the same,” he said. “Did you save any money during this pandemic?”
I replied that yes, I saved a little money but nothing significant, although “saved” isn’t the correct word for it. My checking account was boosted by the government’s stimulus checks, and it’s more like money that is “not spent yet.”
I’ve always struggled to save money. For decades now. As the adage goes, a fool and his money are soon parted. I’ve always been a fool with my money.
Another axiom that describes me, and maybe you, too, is “penny-wise and pound-foolish,” coined by Oxford University mathematician Robert Burton in 1621. Yes, 400 years ago yet it still makes perfect sense for too many of us, even in the Digital Age.
I routinely agonize over the cost of inexpensive store items, yet I casually purchase major household appliances. Hmm … do we really need another tube of toothpaste for a buck? Hey look, a new stove! It makes no sense, or cents.
“Learn how to save!” the email subject line insisted.
“We are excited to announce the launch of our new free Savings e-Course, brought to you by our Financial Education program, Centier to You!” the email stated. “This e-Course provides the tools and strategies to help you identify your savings needs, create a plan, and achieve your personal savings goals!”
This enticed me just enough to reevaluate my savings. And then promptly get disheartened by how much more I should have by this point in my life. “Money matters” has been an oxymoron in my life. Two divorces haven’t helped, forcing me to push reset twice on my financial settings.
When I was in my 20s, an insurance agent who also was my financial adviser told me to save just $100 a month.
“Dammit, Jerry, if you do this you’ll have a retirement nest egg waiting for you 30 years from now,” George Wilson told me sternly.
One hundred dollars a month. After a few years of scraping together $100 each month to pay into this seemingly mythical retirement fund, I stopped contributing. I eventually cashed it in to pay off credit card debt, telling myself I couldn’t afford it any longer. It was the cheapest rationalization I could afford back then.
I’ve wised up since that time. Not enough though. This is why I took interest in a national campaign this week labeled “Money Smart Week,” which lasts through Saturday with free online classes to help people better manage their personal finances. Its focus is on those people who’ve been hardest hit by the COVID-19 pandemic.
Readers have told me for months that the pandemic and its restrictions have dramatically altered their spending habits, and their saving habits.
“It didn’t seem like we were cutting back, but there was more money in the bank,” Debbie R. said. “A tank of gas lasted for a month instead of a week. We were more thoughtful about picking up carryout that we really liked.
And gifts were shopped for online so not a lot of impulse shopping.”
“I’m on a fixed income, so I can’t cut back much,” Barbara S. said. “I spent less on gas because several of my normal activities weren’t happening.”
“I was more forced to cut back on traveling and eating out, which led to less gasoline and car expenses because so much was closed,” Luke W. said.
“We cut back on going out, dining out, and gas. We spent more on drinking at home,” Peggy T. said.
Last Saturday, I checked into the first virtual class for Money Smart Week, titled “Talking Cents.” It was hosted by the University of Chicago Financial Education Initiative. Subsequent classes included: “Saving,” by the FINRA Investor Education Foundation; “Basic Banking” by the Economic Awareness Council; and “Student Loans” by the U.S. Department of Education and Federal Student Aid.
Wednesday’s 1 p.m. virtual class, “Fraud Protection” hosted by the Internal Revenue Service, also piqued my attention. I constantly check my online accounts for any fraudulent activity. I’ve even formally questioned a handful of purchases that I swore I never made. And then I eventually remembered that I did. Embarrassing but true.
The other free classes for Money Smart Week: “Personal Finance” hosted by the Global Financial Literacy Excellence Center; “Housing Protections and Resources” by the Consumer Financial Protection Bureau; and “Budgeting” by the University of Wisconsin-Madison, Division of Extension.
You can view more details and resources at www. moneysmartweek.org. All classes are free and open to the public, but registration is advised. Questions for the panelists can be submitted during the registration process.
If you’re someone who’s older and experienced at money matters, feel free to share any tips or insights for a future column. If you’re someone who’s younger, I urge you to learn from my mistakes. Those 30 or so years will be spent much faster than you think.
Voicemail? Of course.
“Jerry, I don’t use email much. Don’t you have a voicemail like you used to?” asked Ginny T. from Gary.
Yes, Ginny, I have a voicemail and I welcome your feedback, at 219-713-7237. Thanks for asking, and for reading my work.