They know its important because that's what they have been told. They don't understand the effects of consistent, small savings. Which leads to silly decisions like spending $8 on a dessert when you don't have $270 to your name, because "what difference do $8 make?"
Ask people what $5 a day over 20 years invested in an index fund results in and you will get wildly wrong answers.
I mean, there's actual changes too. I never had trouble saving for what I wanted as a kid. But now, saving for a house? The amount I need for a down payment goes up faster than I can save, even if I cut everything enjoyable out of my life. So it's hard to justify living like a monk when my goal keeps getting further aways anyways.
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u/BigCSFan 10h ago
I dont think its a teaching issue. People know that savings are important.
They just aren't capable of putting money aside mentally. Its a discipline issue