Tightwad or spendthrift?

The theory is that you whippersnappers have never seen hard times, so you spend like there's no tomorrow.

What else could it be? The research shows "a modest relationship" between being a tightwad or a spendthrift; tightwads are only 9 percent more likely to have a bachelor's degree than a spendthrift.

Of course, the poor savings rate in the United States may undermine the conclusions of the research that most people are neither spendthrifts, nor tightwads, and the 40 percent that's left meet the definitions of "tightwad" on a 3-to-2 ratio. The authors admit this in noting that the group they studied may not be representative of the population as a whole.

Which are you? You take this test. Of course, by the time they e-mail you your score, a fix will have been found for the pending insolvency of Social Security. So just take a guess.

I'll be live-blogging the show on Tuesday, starting in the 10 a.m. segment. You can offer up your spending stories and I'll be picking the poignant ones (as well as the poignant comments) to share with the radio audience (Yes, News Cut is going on the radio!).

Still, the first question Kerri Miller is going to want to know, is how the News Cut audience views itself. For now, we'll just leave the Gen Y (or Gen Spendthrift) question out of it.

Comments (11)

The results of the newscut poll seem to agree with the study when it comes to gender differences (at least at the time of this posting).

I wonder if the difference between men and women is real (as in men are thriftier than women) or if men are just more full of themselves.

Posted by brian | April 21, 2008 5:25 PM

what poll..
can't see results of anything..
of course bias will skew towards women..
men (if they are married) pretty much do not do household shopping, therefore if often is seen as not making good spending decisions.. when often the opposite is true.

Posted by minn whaler | April 21, 2008 7:35 PM

You should see a survey embeded in the post above.

Posted by Bob Collins | April 21, 2008 8:08 PM

I noticed that when I had to go to work delivering phone books in the winter to help out when my husband lost his job, that I became a severe tightwad. The value of a dollar changed in a dramatic way for me.

I wonder if part of the difference between men and women is that the major role of a man is often to provide financially for the family while the major role of the woman is nurturing the family. Women generally are more concerned about the issues surrounding the children. A person whose responsibility is the finances would reasonably be more cautious in that area.

I am now a single parent with the responsibility of the finances and the children, and believe me, I feel very much more concern about finances than when I was married. I feel the pressure of finances in a way I never have before. (Doing well though.)

Posted by jan | April 21, 2008 8:34 PM

This goes back to the joke about "Living in the style to which I want to become accustomed". I found that my spending habits had to very abruptly change when I stopped working to be a full-time Mom. Never, since I was 17, had I been in the position of needing someone else to provide for me. It suddenly didn't seem like "my" money. I started to feel like a TOTAL spendthrift. When, in reality, it was because I had taken over paying the bills, and buying groceries and house supplies - all for a larger number of people.

Having a budget I think lets people feel like more of a tightwad - you can look at a piece of paper and see where it's all going. Someone who has some sort of vaguely quantitative relationship with her bank balance will tend to feel more like a spendthrift (even if she isn't).

Posted by Elizabeth T. | April 22, 2008 3:35 AM

Good to see that I am not the only one in the boat of limited spending as I have a limited income.

I delivered phone books too last year when I lost my job and my compassionate employer fought me on unemployment. :O
Since then, I have been very careful of how I spend my money as you just never know when the rug will be pulled out from underneath your feet. (This is at least how I feel) Although my current employer is the best employer I have ever had and I feel secure enough that I would have some warning of a departure.

Interesting enough, when the money goes to someone else -such as a gift, I have no problem spending the money. (spending money on a gift within reason).

I would guess that most people with children, married or single, who are not a part of the upper class HAVE to be careful with their money and where it goes these days.

Posted by c | April 22, 2008 9:30 AM

Im almost 50, female and a debt collector... I fell into the job by chance and its been quite an eye opener. If your listeners could fall into peoples lives the way I do, the conversations I hear might change some peoples spending/savings habits. Financial problems have all-encompassing impact on peoples lives and well-being. Wake up and start practicing some self control. Look around your home... how many things have you purchased and never used? Changing habits takes discipline - thats why America is fat and broke.
And if you consider yourself to be "green" and ecologically conscious, then buy less stuff. I havent always been "good" with money but I am now out of fear. I am single, healthy and plan on living a long time. No one else is going to take care of me - I am my responsibility.

Something else to think about... how much time, thought and energy goes into advertising and packaging??? And how much thought do you put into your purchases...

www.imadebtcollector.blogspot.com
www.myspace.com/imadebtcollector

Posted by imadebtcollector | April 22, 2008 10:25 AM

I am 23 and just graduated. I have loads of student debt but no credit card debt.

I find myself living within my means. However if I were to lose my job, I would only have enough for 1 or 2 months.

So I am frugile, but not.

Posted by Nathan | April 22, 2008 10:32 AM

I am both a Tightwad and a Spendtrift. If I have to spend money I make sure it goes as far as possible but if I can avoid it I do not spend money.

Despite all this I do not think I am getting ahead. I have a pretty well paying job but I have child support and student loans that eat it all up.

Posted by Jonpaul | April 22, 2008 10:36 AM

I am 28, and extremely financially consciouss. This is a new development for me, prior to last year I never even considered my finances. Now I am sitting very well, and engaged in many frugal decisions including car sharing and saving 40+% of my income.

Many of my friends feel helpless about finances. We come out of school with 10's of thousands of dollars of student loan debt, the planet is going to hell, we can't buy a house, we have to have two-income families, jobs don't pay a living wage and on and on it goes. It's overwhelming to think about what to do, so why difference does it make not to spend.

Also, if your parent's don't teach you financal skills, where will we learn them? All I learned in highschool was how to balance a checkbook, which is almost obsolete anyway. We don't teach these kids good money skills and yet expect different outcomes.

Thirdly, we are depressed and disconnected people. If people have no self-worth, why would they think about building wealth.

Posted by Jessica | April 22, 2008 10:37 AM

I THINK SOME OF THE SAVINGS AND THRIFTY ETHIC IS GROWING DUE TO THE ENVIRONMENTAL SAVVY OF TODAYS GENERATION. IT SEEN AS COOL TO SAVE , REUSE AND REDUCE WASTE IN ANY WAY POSSIBLE.

Posted by LINDA EHLERS | April 22, 2008 10:44 AM