Why should saving money be part of a ‘national conversation’?
You can’t just live for today. Tomorrow comes faster than you think. Many people will have to work until the day they die because they refused to save for the future. They overspent, and now they’re kicking themselves.
Do you see this across a broad swath of America?
Yes. People have lost jobs, homes. They’ve lost 10 years of growth in retirement accounts. They have no equity left. They’re pawning $1500 wedding rings for $200. The question I’m most often asked is, ‘Should I declare bankruptcy?’
How can Americans take control?
By living below their means but within their needs. It can be done. You can either afford something or you can’t. Parents must teach kids that money can grow over time. College-aged kids might consider community college or working for a year.
For those nearing retirement, your best advice?
Pay off a home in full, especially if you plan to live there the rest of your life. Many people have lost so much in value, they won’t be able to make that up in time and generate the income they need to pay the mortgage.
What about walking away from a home?
It serves the banks correctly if they refuse to work with people. I do not have a problem with people walking way if they honest-to-God cannot afford it, or if they're more than 50 percent underwater. I just don't. Sorry.