Dont forget about the goal of saving. Saving for a new iPhone is different from saving for a 2 store house with 5 bedrooms. With one job and some rare part time jobs, bonuses, freelance a maximum what a person can save during a long period is a car. If he really earn well, then he can plan about buying a new car. Today, compared to time 30-50 years ago, it is close to impossible to save and buy property in newly build house or buy land with properly. Only when retirement is near, a person can achieve that.
I smiled as I read the difference between saving up for an iPhone and saving up for a house.
In today's environment, most millennials are ready to work in order to be able to pay installments so that they can have iPhones and other famous items so that they don't look out of place.
We should realize that we should not pretend to be rich if we are not really rich. Saving for future goals that include health savings, education and other needs is the main point of the real goal.
The percentage allocated should be wise and I agree with your thoughts.
Saving to buy an iPhone is not wrong, as long as it is not just for validation of social status or something, but more because of the demands of needs as a means to support work. I realize that there are many shifts in values in society today, maybe all of them are influenced and shaped by the development of social media. Therefore, I think it is very important to set long term goals, so as not to act beyond the limits due to various kinds of encouragement.
Saving or investing is one way to reach the point of financial freedom, which can make someone retire from working when they are old, it is clearly much more important than just meeting the current lifestyle. Hopefully the current generation realizes this quickly, so that they can save their money from unnecessary expenses.
People start thinking about saving too late, very often. When they’ve already fallen into deep credit debt or when their health no longer allows them to work properly. And that’s tragi, so many lives are ruined simply because people don’t have the skills to build their own capital. I think it would be right to start teaching financial literacy as early as elementary school. At first, children could be given small projects to earn money and be taught how to invest in a playful, game-based format. Then, in high school, they could gain real experience, learning how to identify opportunities to earn and how to invest their money wisely. Ideally, school graduates should enter adult life with well-developed skills in earning and managing money, just as confidently as they know how to read and write.