That abysmal rate bears out in overdrawn checking accounts, a lack of funds for unexpected emergencies such as car repair or medical bills, and excessively high credit card debt. Unlike our parents, too many of us never learned to save until we could pay cash for an item. If the government wants to offer an incentive, it could be for those lower-income individuals to demonstrate an ability to save money in an account and watch the nest egg grow each year from interest and additional contributions. The hardest part of the equation though is teaching patience. We all need to learn to wait on sizable purchases until we can really afford them.
Patience is a virtue that is in short supply in our fast-paced society.
Pacing ourselves on purchases can help us learn to save. It is a lesson worthy of practicing throughout our lifetimes. The House made a wise decision to raise contribution limits, but it only accomplishes helping us save for retirement. Learning to make saving money a habit will be a more complicated problem to solve.