Saving vs. Savings...The Future of the Gen Y

Saving vs. Savings? Is there actually a difference? Are they not the same? Well as a matter of fact, No, they are not one and the same. Wikipedia differentiates the two defining Saving "as the act of putting money away for future use" and Savings as the state money is in once saved. It is obvious that you cannot have one without the other. That being said they are direct complements of one another. 

The bigger question is why do we need to save? What do I use my savings for?

Now, I know for those of us in the Gen Y category, we particularly don't care for saving or savings. That's why we have hard working,frugal boomer's for parents. As a member of the Gen Y, I think that it is a fair assumption that we have been handed most everything on a silver platter. I am not saying that there are not Gen Y's in the world who struggle day-in and day-out but for the majority of Westerners, we have lived relatively hardship free lives. 

But the day is coming that we are put out into the wild to fend for oneself. No more parents to provide free handouts such as food, shelter, and clothes. When that time comes, the first thing on our minds should be to save every last bit of our meager entry level paychecks to ensure that we are able to insulate ourselves from economic ups and downs similar to what we are experiencing right now. 

It's a fact we are very much consumers vs. savers. According to an MSN Money 2008 article, the average Gen Y is faced with over $8000 worth of credit card debt. This level of high interest debt is unsustainable for future wealth accumulation. Add-in the average student debt of nearly $40,000 in both Canada and the U.S., beginning to save becomes even more crucial. 

Even with our meager paychecks, Saving only $200/month for the next 40 years a return of 6%/a gives us $371,428.72 for retirement. It may not seem worth saving now but with maturity your savings per month will easily quadruple that plus the additional income provided by a spouse or partner. 

As a consumer generation it is critical that we start taking responsibility for our savings and start saving.