America in the 1950s was a vastly different place than it is today. Unemployment rates were low, individual purchasing power was high, and mass production and new technologies were making everyday goods and services readily available and cheaper.
Many young adults in the 1950s grew up during the Great Depression — 1929 to 1941. As they went on to launch their own careers, start their own families and pursue the American dream, they did so with the financial lessons they learned along the way.
Check Out: Here’s How Much the Definition of Middle Class Has Changed in Every State
Read Next: 4 Genius Things All Wealthy People Do With Their Money
And those lessons? They were passed down to their children and their children’s children.
While the 1950s might seem ever so distant, many of the lessons that came about back then are still significant today. Living within your means, owning what you have, saving up for the future — these are just some of the great money lessons from back then that you should use today.
Wealthy people know the best money secrets. Learn how to copy them.
Live Within Your Means
Learning to live within your means is just as important now as it was 20, 50 or even 100 years ago.
“In the 1950s, most families stuck to pretty much the same budget from year to year, with people spending only what they earned and never going into debt when they [could avoid it],” said Erika Kullberg, a personal finance expert, attorney and founder of Erika.com.
It helped that the first consumer credit card didn’t come about until 1958, when Bank of America launched BankAmericard. Credit simply wasn’t as readily accessible as it is today.
“In a world where credit is easy, it’s more important now than ever to shop around, practice self-discipline and save rather than borrow,” said Kullberg.
If you must use credit or loans for something, like a house or school, do so with extreme caution so that you don’t end up taking on debt you can’t afford.
Learn More: 5 Frugal Habits of Mark Cuban
Live Like Your Money’s Going To Disappear
Living like your money will disappear doesn’t mean spending everything immediately. Quite the opposite, in fact.
“In the ’50s, many adults remembered struggling through the Great Depression,” said Todd Stearn, founder and CEO of The Money Manual. “With low inflation and unemployment and high wages, the middle class had more spending money than ever in the ’50s, but many were so impacted by the things they and their parents had been through financially that they often saved carefully despite the good fortune many had found. That caution with money is just as valuable today.”
Save as Much as You Can, But Use Your Savings as Intended
Another key money lesson from the 1950s is the concept of saving for the future.
“It was easier for people to save a standard portion of their income, and over time, emergencies could be covered, and a nest egg accumulated for retirement,” said Kullberg. “This practice worked well in the 1950s in part because the economic growth of that era, and low and stable inflation, created a healthy environment for long-term saving and retirement.”
Even saving small amounts consistently over time can go a long way in the face of emergencies or when planning for retirement.
It’s also important to use that money for its intended purpose. This might have been a little easier back then, but it’s still important today.
“Christmas clubs, or holiday clubs, were a popular type of savings account in the ’50s. People used them to save up for things like holiday gifts or travel,” said Stearn. “You were required to deposit a certain amount each month and were penalized for early withdrawals. Those types of accounts are much less common today, but the sentiment of resisting the urge to touch your savings is worth holding onto.”
Understand the Value of Your Money
“My grandmother grew up during the Great Depression and raised a family through the mid-century. She lived with us throughout my childhood and taught me many lessons about life, the value of money and how to live on a little of the latter,” said Michael Primavera, retirement planning advisor at Daniel A. White & Associates in Lewes, Delaware. “She used to always say ‘a dollar only goes as far as you take it.’”
When you truly understand the value of the dollar, you can start to develop better financial discipline, cut back on impulse purchases and achieve your long-term financial goals. This, in turn, makes it easier to achieve financial independence and avoid some of the more common financial pitfalls people face — like major debt accumulation.
Plan for Long-term Changes
“The 1950s were considered the Golden Age of the U.S. economy, which grew by 37% throughout the decade. Gas was 25 cents, and a new car cost about $1,400. There was never much talk about inflation back then, maybe because most of the 1950s saw very little of it,” said Primavera.
“The 1950s saw inflation grow about 2.25% annually,” he continued. “Today, that’s considered ‘healthy inflation.’ The economy must grow a little if we as a country want to progress.”
But even though inflation has been much higher in recent years — roughly a 19% increase across the board in the past three years, according to Primavera — that doesn’t mean you should stop planning ahead. If anything, you should be even more diligent with your finances.
“Planning any long-term endeavor requires careful consideration,” said Primavera. “If you overlook inflation, you may wake up one day just a bit short of where you need to be. Who wants to live on a little less as life goes on?”
Invest in Homeownership
Homeownership is still the dream for many people, but it often feels very out of reach.
“[In the 1950s,] most families aspired to own their homes, and buying was seen as an important investment and a way of accumulating wealth over time through increased property values and equity,” said Kullberg. “It was also easier to do back then, because housing was more affordable and so were mortgages. Moreover, the job market was much stronger than it is today.”
Although it’s harder to buy property today than it was 70 years ago, the investment is generally worth it in the long run.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Great Money Lessons From the 1950s You Should Use Today
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
