Comments on: A Penny Saved is Worth More Than a Penny Earned

By: cm

cm — Sat, 20 Feb 2010 15:49:41 +0000

> If I put my $1000 into savings, part of that $50 I earn in interest is going to go to
> the tax man. You just can’t win.

Sure you can! I’d rather have the remaining $40 than the $0 I would have had with no savings at all. It’s still 80% win!

By: Adam

Adam — Thu, 18 Feb 2010 21:04:59 +0000

You make a good point, however, I think you actully understated the effect of taxes on your dollar saved. In fact, because we actully pay taxes on the money we pay our taxes with, saving a dollar is equivilent to earing $1.48 if you consider federal income tax within the 25% tax bracket, and 7.65% for FICA and SECA. To replace that $5 spent on a Starbucks you actully need to earn $7.40! Add state taxes of 5.5% and now we are talking about earing $8 to replace the $5 spent on that Starbucks.

By: sue

sue — Sun, 24 Jan 2010 16:53:09 +0000

If I put my $1000 into savings, part of that $50 I earn in interest is going to go to the tax man. You just can’t win.

By: Ryan

Ryan — Tue, 09 Dec 2008 00:52:07 +0000

Paul: Thanks for the compliments! Financial planning and money management skills are topics that need to be taught more often in schools. I wish I would have had a little more exposure when I was in school! Fortunately, I have always been interested so I took it upon myself to learn. This blog is a result of my hobby.

By: Paul

Paul — Mon, 08 Dec 2008 23:08:49 +0000

Outstanding article. I will be using it tomorrow in the class I teach, Life Skills, to 9th graders primarily. Well written and easy to understand and important principles… especially today with the economy.

By: Melinda (Aussie-Girl)

Melinda (Aussie-Girl) — Tue, 15 Apr 2008 00:22:45 +0000

It is our responsibility as good stewards of God’s wonderful world to educate our kids ‘at home’ on the value of savings.
School could complement this education but at home through extra chores, pocket money & donating to others less fortunate are much clearer & inspiring avenues of learning.
I have one saver (7 year old boy)already looking at some shares to increase value of savings.
I have one spender(9 year old girl – yeah no surprises there). However, she gives more than her share of money to Church, Community programs abroad and the like……………

By: Roman

Roman — Thu, 20 Mar 2008 15:04:19 +0000

Time value of money, taxes and death should be the saying, Not Death and taxes. Saving is always better the earning… Unless you earn enought

By: Ryan

Ryan — Wed, 05 Mar 2008 12:20:17 +0000

Lila, you got it! Investing is the only way you will be able to keep pace with inflation. Saving your money in a savings account may keep you close to inflation, but long term it certainly won’t make you any money!

Spending money on the premise you can earn more money is also not a great way to do things because it will take more in earnings to replace the money you just spent.