FRUGALITY
“A penny saved is a penny earned” this was one of the Franklin’s thirteen virtue that was meant to make people aware about frugality and thrift and help them to manage their economic and financial status. Frugality means acquiring goods and services in a restrained manner, and resourcefully using already owned economic goods and services, to achieve a longer term goal. Nowadays, this virtue is not applied by the Americans in their lifestyle like it was used to because they are much more concerned to get what they want, no matter how much it costs them. Americans today are profligate spenders who are not seriously concerned with frugality and thrift like they used to be as they spend wastefully on the things they like rather than on the things they need.
In America and almost every other country, an income is the main source of support or the backbone of the people’s financial and economic state, with which they fulfill their basic and additional needs. But nowadays the income, which otherwise would have been far more enough to support an average family with some savings for future, is barely enough to cover their monthly or weekly expenses and savings. Some people even have to mortgage their house and properties. This is mainly because they are unable to suppress their instant desires and expensive habits. Gambling in deluxe casinos, attending exclusive parties, organizing sumptuous get together are the examples of the things Americans like to do, in which they waste more than half of their income in average. They usually ignore the frugal practices that could prove to be beneficial to improve their lifestyle. When the paycheck arrives the first thing that is done is the payment of bills and then the remaining surplus ...
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...ke into account the importance of the standardized tests and thus did not get any scholarships. So, she is now paying five thousand dollars yearly. This shows the lack of perception on some people who unconsciously deny the application of frugal practices in their life.
“Want not, waste not”, Americans today do not follow this policy either because they are ignorant or unconscious about it. Thousands of dollars is wasted due to lack of application of frugality in their daily routine. They waste their money in fulfilling their instant desires, expensive habits, luxurious parties. Americans simply neglect the alternative ways from which they could be acting frugal and saving money. Therefore, Americans today are much more concerned with fulfillment of their immediate wishes no matter how much money they have to waste for it, rather than with the frugality and thrift.
Even though members of Congress are trying to ban to penny, Americans can spare the time to use them. In Ric Kahn’s
Have you ever felt like you are spending too much money at a time, on pointless items? Statistics show that American’s consumption rate of goods has increased by forty-five percent in the last twenty years (Statistics-Consumption/quality of life pg. 194). Americans are experiencing a thing that is many times known as “Affluenza”, this is when someone buys more items, such as clothes, cars, houses, or any unnecessary items. Many people talk about this so-called “Affluenza”, like it is a medical term. The word Affluenza is pretty much saying that people make money and work hard for their money and they like to buy nice things, because they can and they have the money to. They are fortunate enough to be able to have these nice things for themselves because they work so hard for it. Many Americans are not satisfied with their positions because of false ads, selfishness, and jealousy. Some celebrities, some of the wealthiest people on the planet have committed suicide because they are not happy with what they have and they feel like they need more items, when really they have everything they need to be happy, but they suffer from Affluenza and make these bad decisions.
Have a good look at the penny, what do you see? You probably see nothing but a copper coated circular poor valued cent. Little does everyone know pennies have been around longer than before their grandparents, even their great-grandparents! Matter of fact, it was around so long ago that Abraham Lincoln’s face was not the first design on the penny. I ask that you take the time to consider the American penny’s worth. Without the people’s belief in its value, the penny will be abolished. I see people every day throwing away a penny rather than to put it in their pocket and save it for future uses. Yes a penny is "outdated, almost worthless, bothersome and wasteful" (Safire) piece of junk, but it's has an economic, cultural, and historical significance to the United States of America. The problem is that nobody pays attention to that, and that gives pennies the image of no value. Three good solutions to show the pennies worth include: tolls and vending machines accepting the coin, more charities to keep their penny drives, and historical evidence of what the penny mean to America so that it can be passed on to the future generations.
The penny is so close to worthless that there is a major debate on whether the penny should be kept in circulation. Keeping the penny in circulation would be mostly for those traditionalists who see this coin as history and luck. Many are working very hard to keep that piece of history from meeting its retirement. ALTHOUGH THE PENNY HAS BEEN AROUND THROUGH AN ABUNDANCE OF GENERATIONS; DEPLETING THE NATION OF THIS COIN WOULD BRING LESS HASSLE AND MORE BENEFIT.
In a life where its value is derived from the price tag attached to personal possessions, it can be easy to throw caution to the wind when it comes to being responsible with money and property. The Izikothane way of life adopts this outlook on life whole-heartedly, which is completely contradictory of the practical lifestyle set forth by Ben Franklin in “The Way to Wealth.” Their ability to spend money at the drop of a hat is nothing like the frugal, save-happy practices that Franklin supports in his work. According to his words, money comes to people that are careful with it, and the Izikothane are anything but (238). The lifestyle revolves around the expenditure of money on things that are not necessities in life; they are luxuries that, if need be, people can live without.
Benjamin Franklin says, “… under thirteen names of virtues all that at that time occurr'd to me as necessary or desirable, and annexed to each a short precept, which fully express'd the extent I gave to its meaning.”1However, the annexed perception, though he might believe his intentions were clear and full, may be elaborated on; He does so throughout his book. Also, some of the values Benjamin Franklin mentions in his autobiography could be seen in another one of his books, The Way to Wealth. Although The Way to Wealth is more financially oriented, the lessons learned there could be applied to daily life. The Autobiography of Benjamin Franklin and The Way to Wealth both believe that frugality is an important virtue.
In America’s modern day economy, the penny is very useless and irrelevant in our society today. As source C states, “The time has come to abolish the outdated, almost worthless, bothersome, and wasteful penny.” There is not one item that can be purchased with a penny anymore (Source C). As source C states, “it takes nearly a dime to buy what a penny bought back in 1950.” Stores such as the Dollar Store prove how the cheapest items you can purchase are with only a dollar, not a cent. Pennies are shoved out of the economic picture by credit cards and because of the modern-day technology, there are even self-service machines that help convert coins into paper money (Source B). Furthermore, pennies are easily tossed into piggy banks or appear behind chair cushions. It is not used the same way as it was before.
The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade. The typical millionaire is very frugal in all endeavors and finds the best discounts possible. A budget is implemented daily, monthly, and annually for a typical millionaire. They live by the budget and are goal oriented. Living well below their means is crucial for a millionaire, and discovering ways to allocate time and money more efficiently. The typical millionaire next door is different than the majority of America presumes. Let’s first off mention what it is not. The typical millionaire is surprisingly not the individual with the lavish house worth a million dollars, owning multiple expensive cars, a boat, expensive clothes, and ultimately living lavishly. The individual is frugal and often looks for discounts for consumable goods. The book illustrates the typical millionaire in one simple word: frugal. It is shocking to believe that this is true, but it does make sense. To achieve financial independence is inherently more satisfying and important than accumulating wealth. According to the book the majority of these millionaires portray characteristics of being sacrificial, disciplined, persistent and frugal. In the book it states, “Being frugal is the cornerstone of wealth-building. Yet far too often th...
America is built on materialism and it created the idea that happiness is formed from consumption. Advertisements have successfully turned every major holiday into an opportunity for people to empty their pockets. For example,
Money is the backbone of America. Without it anarchy would break out and bargaining would fail as people would claim the trade wasn’t fair. Thievery would explode across the globe and some lazy people would have no motivation to work. While most people believe that money is important, the question is whether all money is important. For centuries, the penny has shared a role in American currency and has served a great purpose. In the past, pennies could buy candies, slices of bread, and many other things all on their own. But as time changed, so has the value of the penny. As costs went up, the value of the penny went down. And with its lesser value, some people wonder if it’s even worth it to keep the penny around.
A large part of this problem is that many Americans buy into the ploys of capitalism, sacrificing happiness for material gain. “Americans have voluntarily created, and voluntarily maintained, a society which increasingly frustrates and aggravates” them (8). Society’s uncontrolled development results in an artificial sense of scarcity which ensures “a steady flow of output” (78).
A buyer brings along with him snacks that he would like to purchase in a dollar store: chocolate chip cookies, a Pepsi, gummy bears, and a bag of chips. He waits in line, eager to consume this huge delight. It is his turn, and he hurriedly placed his treats on the counter, waiting anxiously to pay immediately. The cashier replies to him, “The price will be $5.99, sir.” The buyer takes out five one-dollar bills and four quarters. Not an instance did he ever use a penny in this case, which he thought was useless and meaningless. As you can see, the penny has become quite worthless and diminished in purpose. Many citizens would prefer to round up and pay rather than spend time and look in their
In 1899 Thorstein Veblen wrote The Theory of the Leisure Class: An Economic Study of Institutions. In this work, Veblen presented critical thinking that pertains to people’s habits and their related social norms. He explores the way certain people disregard the divisions that exist within the social system, while subsequently emulating certain aspects of the leisure class in an effort to present an image of higher social status. He also presented the theory of conspicuous consumption, which refers to an instance when a person can fulfill their needs by purchasing a product at a lower cost that is equal in quality and function to its more expensive counterpart; however, said person chooses to buy the more expensive product, by doing so, they are attempting to present an image of a higher social status. The almost 110 year cycle between 1899 and 2010 reveals few differences in buying behaviors, other than the differing selection of luxury goods to indulge, or over-indulge in.
Rockwell evaluates how doctors’ offices are open during all hours of the day (Rockwell 639). He argues, “But it can only stay open late because its offices are nestled in a strip mall where the rents are low and the access is high” (Rockwell 639). Ultimately, the purchase of goods by the people pays for the availability and connivance of medical assistance. Without access to urgent and everyday care, the mortality and illness rate would increase and cost more money overall. Rockwell states, “If you think through any service or good that is widely considered to be a need, you will find that it employs products, technologies, and services that were first created to meet superficial demands” (Rockwell 640). When society demands a product or service, the market has to find a way to financially afford the necessity. The consumption of goods helps provide opportunities and availability for the products consumers demand. While there are several benefits of consumerism, the effects of spending money only gives temporary fulfillment. Schor declares, “The increasing consumption of the last forty years has not made us happier. The percentage of the population who reported being “very happy” peaked in 1957” (Schor 635). However, it is important to balance the amount of spending versus saving. Consumers should not spend their money to gain happiness; instead, they should spend their money to support their needs and
... English, it is the love of material things. This "love of material things" causes the majority of people to spend money carelessly, always buying things that they believe make them "happy". In a study done by 24/7 Wall Street, there are 10 things that the "average" American household spends almost 15% of its annual income. These ten items are, in order from highest to lowest (in number, not price):