Spenders not savers
AS we enter this period of economic recession and financial uncertainty I've been thinking more about my own money issues than I normally do. Because of the high level of media coverage, the subject of finance often crops up amongst my friends, both the ones who are working and those studying.
I've been brought up in a family which has always been careful with money, saving for a rainy day and generally living within our means. This has resulted in a strong feeling of financial security throughout my life. I might not have had the latest trainers or the coolest clothes but I never really wanted for anything. I'm very grateful for this and I'm keen to make sure that my own family might one day feel the same security that I have enjoyed.
During the discussions I've had recently I've discovered that very few of my friends have any money saved up anywhere.
There is literally a handful of people I know who have money in the bank for future use. I thought that anyone with a job, but still living with one or both of their parents would be able to afford, and therefore be saving. However, it seems that my generation are spenders. Despite being a full-time student I've managed to put a bit away from my summer jobs and DJing but it's become clear to me that people who are on the face of it in a much healthier financial situation than me, have not made any effort to prepare for the future.
I'm keen to understand why this might be as saving up for something I want or just saving for the future has been ingrained in my nature ever since I could count. I have a friend who I once lent a small sum of money to when I was at school. She wanted to buy a present for her boyfriend and hadn't been paid yet so I lent her about twenty quid. The fact that she told me she had no money until she was next paid should have rung alarm bells but I was naive and handed over the cash.
After weeks if not months of asking, pestering and eventually demanding my money back I got a phone call to say that this girl had my money and would bring it round to the house! I was so pleased to be getting it back because after all that time I'd begun to wonder if it was worth nagging about anymore. Anyway, I suggested she just put the money through the letterbox as there was no one at home and I would collect it later.
Her response was: "It won't fit through the letterbox Rory." Why on earth not I thought; has she got me gold ingots? "Well put it in a carrier bag and leave it under the garden shed then, I'll find it when I get back," I said. I got home about half an hour later to discover a carrier bag containing twenty pounds in unsorted one and two pence coins. As you might imagine after months of pestering I was a little annoyed and I promptly phoned her and asked her to give me 'proper money', which she did. I now think this is very funny and, in case you're wondering, we are still friends.
I have a hunch that once I started asking for my money back my friend had started a change jar and the excuses for not paying me back were simply because the jar wasn't full yet!
The other aspect to this is that many of my parents' generation saved enough money to buy property at a young age, especially in Orkney. If I knew where I was going to be in nine months time I too would be seriously thinking about this option as to get on the housing ladder in my early twenties would be excellent. Given that the housing market is coming down again I would love to see my friends investing in property and getting themselves some 'bricks and mortar' security for the future, but judging by what I've learned recently, most of them are not fortunate enough to even consider this option. Perhaps as parents my generation will go back to the older values of prudence and keeping some in reserve.
As you will know if you read last month's column, or heard my podcast, I was down in London for the 2008 Student Radio Awards. Although I didn't win in the end it was a very interesting and inspiring experience. To sit in a room with over 400 other people, many of whom are likely to become the next wave of producers, presenters, researchers and station managers was very exhilarating. I also got the opportunity to introduce myself to Andy Parfitt, the controller of Radio 1, as well as DJs Greg James and Steve Lamaqu. At the time I was disappointed not to have won, but getting down to the last 5 out of over 500 entries is still pretty cool and I will certainly be entering again next year.
As a final point this December I'd like to express my views regarding Christmas cards. I can see that people enjoy sending and receiving cards from people, especially those old friends or family they don't see very often. However, because my generation can contact their friends so easily by things like Bebo, Facebook and text messaging the need for paper greetings seems almost non-existent. I would far rather get a text or a 'wall message' than a card simply saying 'To Rory, Happy Christmas, Love Jo.' It just seems a bit empty, not to mention the cost to the environment.
If I don't get any Christmas wishes at all now, I'll know I've only got myself to blame. To all of you reading this, my friends and my family I'd like to take this opportunity to wish you all a happy Christmas and fantastic new year.
