Income and Wealth

I think that in order to establish a financial base that can be passed on generation to generation, people can start by living within their means and saving money. Although, just because someone is born into a low income family, that does not mean that they do not have opportunities to come into wealth during their lifetime. I think the majority of success stories have a lot to do with people being driven and working hard toward their goals. When someone is determined and puts their mind toward something, they can achieve great things.

I do not agree with Shapiro that our lives are shaped by the wealth of our parents or prior generations. I look back at my dad’s parents, my grandparents, who worked hard in life, but lacked higher education. They were by no means at all wealthy, but my dad went on to college and got a degree, which I believe is a huge factor in wealth. I believe that education is the key to success. Yes, a few famous people have greatly succeeded without higher education, but in reality, education is pertinent to success. He and my mom both worked for a while until my mom had kids, then she stayed home, but the thing is, my parents are big savers. I think saving money plays a huge part in wealth. Sometimes people spend money like it grows on trees. And obviously, it doesn’t. I think there are so many ways that you can create wealth for yourself and your family. You can put money aside each and every month into bank accounts, to save for your children’s college funds and just simply to have money in the bank. When you save money you can own things and have them be yours, not owned by the bank or dependent on a loan that has to be repaid. I think independence of owning things creates pride in what people have. Also, people tend to value things that they have worked hard for.

Besides saving money, I feel that living within one’s means is extremely beneficial to wealth as a whole. My family was never one to go out to eat every night of the week or buy whatever we wanted at the store. Going out to dinner at a restaurant has always been a rare event, since it is very expensive to eat a single meal at a restaurant for six people. When we go to the store, my mom only buys necessities and what is on sale or clearance, and she uses coupons. If she doesn’t need it, she doesn’t buy it. To me, this makes perfect sense. If I want something but I don’t literally need it, I have to buy it with my own money. I feel like when parents instill values in their children about the importance of money, it is evident that they impact their perspective about how crucial saving and living within ones means really is. Along with wealth comes the relief that your family will never go without, and you will always be able to provide for them.