Whatever happened to "saving for a rainy day"?

It’s always been the same- the “feckful” are the ones punished whilst the feckless get a (mostly) free ride… ☹️

I think everyone was bought up to save (with exceptions, of course)
People are speaking as if it's unheard of.

I was brought up to save by a father who was an accountant. I remember going on a school trip and him saying to me to make sure I didn't spend all my pocket money but keep some for contingencies. I didn't know what contingencies were! I do now and have always kept some money aside for them!

I do have some savings and am grateful for that as the present cost of living crisis would be a big worry otherwise. I feel so sorry for those who through no fault of their own are unable to save, but have no sympathy for those who earn good money but never save but spend on luxuries. Why should those who are careful bail them out when they come upon hard times. It's true that those of us who are careful end up losing out on benefits but at least we can be confident that we have done our best to provide for ourselves and our families. Tempting as it is to spend, I'll always feel a need for a 'rainy day fund' - those contingencies my dad was so concerned about.

I am saddened to read some of these posts, they show a complete lack of understanding or compassion, and are rife with generational division; just what the government want you to do. While people are spreading stories about other having the latest phone (allegedly) or having their nails done, or heaven forfend, treating themselves to a coffee and a slice of cake, they are not blaming those at fault, the government. Can we please stop with the 'all youngsters' nonsense, you don't know mine, and I don't know yours.

That's exactly how society should work.
Without that, we have lost humanity.

Rain would be very welcome at the moment let alone saving for it. There is the famous quotation 'The poor will always walk among us.' I think that life should include things we all enjoy and something saved for bigger things. It is not a governments job to keep bailing swathes of the population out all the time. Food hubs, food banks etc are a modern version of what has always existed the better off helping out the less well off.

Norah

The people on holiday, getting nails, who have Land Rover - are not in crises and we needn't have opinions on their 'rainy day pots'. Unfortunately, the people in crisis haven't money to save and need not be judged.

Exactly this. My partner and I don’t have spare earnings to put away and save.

You asked what happened to "saving for a rainy day".
There are many good answers, here is my contribution.

Since around 1980 banks in Denmark no longer offer interest on the money in a savings account - so there was no real advantage in trying to save.

Tax rebates were, and are still, based on whether you were a member of a union and its scheme for unemployment benefit, so it made sense to join. However, you were taxed on earnings that you had deducted at source and paid into a pension fund, and taxed again on the money when it was paid out when you retired, so it made no sense to contribute to pension schemes apart from the compulsory ones.

If you need national assistance, any money you had in a savings account in your own name has to be withdrawn and used up before national asssitance is made available to you.
Another good reason for not saving, or at least not banking any money you tried to save.

A savings account in your children's names, to be made available to them for further education once they reached the age of 18 was not touched by national insurance, and if you had a saving account of the kind designated "Saving to buy a house" you could keep that money too, as long you were living in rented accomodation and owned no property yourself.

Household insurance did not cover cash stolen from your home, even if it had been securely locked away. This has been altered on the face of it by most insurance companies, but they have increased their premiums when they abolished the no insurance for cash rule - so really it boils down to the same thing.

Since 1979, living on an average wage in a city, expenses were so high that it literally was not possible to save more than a very modest amount a year.

Now as a pensioner I have managed by practising strict economy to put around 300 euros aside in the course of the year since our last cat died, in order to pay to have our two recently acquired kittens chipped, innoculated and issued with EU passports next week. And somehow in the course of the next two or three months I shall need to find a comparable, or slightly larger amount to have them both neutered before the female comes into season.

So this I think answers why people stopped saving, so now it is only really our generation who would know how to do so.

When filling a form for a Blue Badge or similar, remember to fill it in remembering your worst most painful day because that could happen again in future. That money may become very necessary.

I’ve never earned enough to save but have managed to pay mortgage on my little excouncil house. I am paying about the equivalent of a weeks rent in a private rental for my monthly payment. However if I had been in social housing I could not have afforded to work I also run a car but for how long I don’t know. I just about manage.
I was amazed at Asda being criticised for its new yellow label foods. Love them and I save but some people say they feel stigmatised. How silly. So although I would love to have a fat bank account. I’m content. With making do, knowing I don’t owe anyone I do feel sorry for families tho.

'53MadeInYorkshire'. It must be very hot for you if you're living in the conservatory. Could you not move into a cooler room?

Yes, the only people who can possibly see that as acceptable are those for whom £60k is less than 10% of the profit they've made from just living in their house or those who will get it paid anyway.

It is those with modest means who are bled dry, and they are the people who are castigated for resenting the fact that the system is so unfair.

Doodledog

I think that a lot of people who will be badly affected by the fuel crisis won't be those who have frittered away their money though. They will be those who have to spend the majority of their income on rent/mortgage, childcare and bills and will have little or nothing left over. If they have a gym membership, a newspaper or fancy soap, why not? Everyone needs a bit of luxury, particularly if they are working all week.

I don't think the full crisis falls into the category of 'a rainy day', but I know what you mean in general. I was also brought up to save for what you wanted and to 'put something by' for a rainy day. As I've got older, I realise that means tests often penalise people for doing so, and have wondered whether I'd have been better off spending more when I was younger. So many people are very keen to wonder whether others 'can afford' tp pay for things that others get free, or if they 'need' any concessions, and rather than see thrift as a positive thing see it as evidence that you were 'lucky enough to be able to save'. It does sometimes feel as though spending is rewarded and saving penalised.

I think you’re right - younger people can’t be blamed for not saving when you realise the financial pressures brought to bear these days. Home ownership is all but out of reach and any hope of saving for the massive deposits needed are impossible when you look at the financial pressures - rents were already spiralling and when you add the cost of living increases and fuel prices, there’s not much left over to save.

I agree with you about means testing. I had this very argument with a family member recently. Their attitude was that in general people should save if they can and it’s something I agree with mostly. It’s means testing I have a big problem with because if you’ve been able to save and you run into difficulties, means testing thresholds are set so low that you’re left struggling even if you’re only a pound or two above the threshold and you’re expected to drain your savings before you get help.

It’s happening in later life care too - albeit in a different way, but still a form of means testing to my mind. An elderly relative went into a dementia care home recently. Her funding pot came from the sale of her home and when we were dealing with the arrangements it came to light that it’s common practice in the UK for care homes to charge self funders more per month so that they can provide subsidised places for Local Authority funded residents. Our relative is paying in the region of £1000 a month more than LA funded residents in our area. Now I know there’s a social principle involved, but we worked out that if she lives five years her funding pot will be exhausted and she will have to rely on the LA, who may want her moved to a cheaper facility before they will pay. And yet in that time she will have essentially contributed £60,000 towards LA funding for other peoples’ care. I find that really hard to swallow.

Huge generalisations going on here I feel. I have children who have saved every penny they could to be able to buy a home, on which the mortgage is much lower than the rent they previously paid. I also know of some older people who are in debt up to their eyeballs. This is not a generational thing, despite what the media wants you to think. Everyone's circumstances are different and we do not know what they are, so should not judge. Incidently, that couple who saved every penny were not able to buy until they inherited money. They are very aware of this but I am appalled that despite having 6 degrees between them, including a doctorate. Because they have chosen to work in the caring professions they were unable to earn/save enough to buy a home by themselves. The young are not to blame, there's not enough 'frivolous spending' to cover the amount of deposit they needed to find. It is certainly not the same as when we were saving for a home. Incidently, they and I continue to save against the storm that is coming.

I get heartily sick of hearing Young's moaning about how olds have " taken the best" !? Really? Last time I checked everything we olds have we've worked scrimped and saved for over 40/50+ years!! Not "taken" anything! Maybe if the Young's dumpd all the junk they surround themselves s with, they too may find in 40+years THEY can afford to live a seemingly comfortable life albeit without luxuries, which they regard as necessities!

We are dependent upon benefits and extra payments from the government, as well as our savings.

My phone? Looks identical to a £400+ all singing etc smart phone BUT cost less than £80 as it has hardly any capabilities but yer know? It actually works wonderfully - AS A PHONE!???

Not wanting to sound flippant but- more fool you. I was advised by my father never to divulge any savings to anyone! What I'd saved out of already taxed money was my business alone! And he was a senior civil servant in a very sensitive department! So I never did, not that I ever had loads but they don't allow you hardly ANY savings.so be warned ,if you don't tell they can't find out and they also assume that majority of decent types tell the honest truth....

I was the typical stay at home mum to three, also had a small evening job, husband had two jobs, it was a financially difficult life for many years but we knew how to stretch the pennies and survive. We eventually managed to save, which we did by camping in the uk when others were off on exotic holidays on the never never. We overpaid the mortgage from around age 50

It did pay off in the end, I am managing fine as a widow, not extravagant by any means but if I want or need something then I get it.

Saving habit started at a very young age, just pennies to the post office and as adults, it was all about living within our means, to the extent of getting cash out every month and dividing it for labelled envelopes. We never had mobiles, broadband and all the expense that can ensue from them. We took packed lunches to work etc

Our 3 AC have learnt from us but have not really put the effort into keeping a safety net. They don`t realise that finances can turn on a sixpence. They have all had some sums of money from me in the past, spent it wisely too but no more from me now. My savings now are eroding and this is when I am truly glad that I spent so much on fabrics and fibres for my very important hobbies. I have enough for years to come, an inflation hedge

I haven't been able to save anything at all since I became unable to work - no holidays, hair cuts, cuppa and a bun ..... nothing, it comes in and all gores out - and they also wanted me to pay nearly £200 a week for a daily 30 min wash! I am living in my conservatory and running the aircon before I shrivel up and die, but as I haven't had a proper bill since I moved in in January from British Gas, I am absolutely dreading it! I can cope with being cold, but being too hot for me is unbearable! I have been constantly sweating for months now and am washing in the kitchen as cannot get up to the bathroom. Feeling grubby, uncomfortable and quite frankly, more ill than usual, yuk .....

Many of the young have "the must have" mindset. I was shocked to learn a young Mum not far from me pays £80/month and will do so for 2 years contract for her latest phone. I bought mine for £140 and pay a variable amount that I chose of £6 or £8 a month. I can cancel at any time. The Mum doesn't work, two young children, one goes to nursery a few hours a week. Priorities mean nothing for some of the young whereas many golden or silver oldies were almost brainwashed to not waste money and to save.

As kids we always had a moneybox to save for holiday spends or you did without. When I was getting my first car my parents lent me the money and kept a notebook with my weekly payments written down until it was paid off, right to the last fiver. I remember once I said about getting a credit card and my dad went nuts, so that never happened and to this day I've never had one.
I'm so thankful to them now for teaching me to save and be careful with money because having savings has helped when a few nasty surprises have happened with houses, car, etc in the past. Now I'm dipping into them for electric, gas etc. I'm one of the lucky ones that can do that though.

My son has no savings and lives quite frugally even though he and his wife work. He is in a panic now as his big old family car was written off at the weekend by a drunk driver.
Because the car was old the insurance won't pay enough for a replacement and as I have already helped him out I can't help.

I was brought up to save if I could. Sadly after divorce & raising my DS alone I had to give up my job due to after effects of a childhood accident. Kept our heads above water but never had any spare cash to save. So do get fed up with some younger people insisting that every pensioner owns their own homes & is well off! Dont I wish! Home had to be sold as no way being medically retired could I keep up mortgage payments. My DS learned from me to try to save & still does even with marriage, 2 children & a mortgage to pay. If I could save I would but my 'old age' is now far from easy as must be the case for many older people! I would love to own my own home & not be looking every few days for a Section 21 from my Landlord! So looking for cut backs to pay the increasing fuel bills is crazy! Rent comes first, then bills & if I am lucky buy some food! Never thought my old age would be like this & must be thousands of others like me thinking the same way! Then wont be here much longer at my age will I? So will not be looking to make cut backs as it will all be over! If I sound miserable & 'off thread' sorry. Just a bad day today!

My dd has just been to Blackpool and said how bad it was; people on drugs, drunks, half naked people (I know it's hot). One said to her 'we're just spending our Universal Credit'. I know some people are genuinely struggling. I've been a saver all my life, two jobs, but glad I saved it as now I'm disabled I buy things to help me, mob scooter etc. I don't claim anything as I can't bear doctors and hospitals so avoid them.