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A PENNY SAVED...

Why Do Republicans Start Saving Money Earlier?

Wealth, education, and personality type all play a role

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by Dain Fitzgerald

Staff Writer t

Image: Etsy

If war is merely politics by other means, is politics nothing more than personal finance writ large?

Compared to Democrats, Republicans begin saving earlier for retirement, writes Catey Hill at The Wall Street Journal. According to a new survey, 79% of Republicans in the 55-65 age group began saving for the post-work years before they turned 50. For Democrats, that figure was 69%. It's a gap that's explained by a variety of factors, observes Hill, an obvious and important one being wealth: Republicans typically have higher incomes than Democrats, which makes it less costly to place some money aside.

But also education. Republican baby-boomers are 4% more likely than Democrats to have college degrees, and with education often comes financial know-how, Hill points out.

Another factor could be one's organizational mindset. Hill cites research from political psychology finding that conservatives were better organized than liberals in their homes and in their record keeping methods. "Assuming that there's a connection between being physically organized and being financially organized," writes Hill, "that could account for conservative-leaning Republicans beginning to save earlier."

Via The Wall Street Journal.
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Why do you think Republicans start saving earlier for retirement?

Comments (view in Forum)

  • Zazziness
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    @Neo_NtheMatrix Don't know about the rest but most Republicans I talk to are highly suspicious of education and educated people. That's what raised my eyebrows.
  • mimi57
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    @Zazziness Yes, that explains why most are so successful and 'rich', it also explains why they are not the ones leeching off government entitlements , you know like the Libs..." I want freebies, gimme, gimme"! Yes, ya gotta
    love those "educated" Libs, is that why they are always the ones unemployed?! Is it all that "education??? Or
    is it that Bezerkly education , you know majoring in "Ancient Nudists and Homosexuality"?.. Please!!!
  • View all 48 replies >
  • Neo_NtheMatrix
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    This should be a very interesting subject, with the usual cast of people ranting about this and ranting about that. I'm just going to sit back, eat some popcorn and enjoy the show. Another win for my side.
  • MarkJM
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    Because they're intelligent enough to recognize that greater days are ahead. They're also intelligent enough to recognize that relying on Big Brother Government is a huge mistake.
  • marine1
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    I think that conservative values are geared more towards being self sufficient and not relying on others to provide for them. It might be that they have more personal respect for themselves and don't want to be seen as lazy or inept. Most likely, it was their parents that instilled in them an initiative to prosper and be self sufficient.
  • bsking
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    because Democrat naturally assume that they will either hit the lottery or the other tax payers will all chip in for their retirement
  • bsking
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    que the Democrats " it's because the Republicans are greedy and mean spirited and they don't care about the poor ." yada yada yada
  • o
    NO-BAMA
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    Mainly because they don't believe in the "welfare nanny state". They don't want to be dependent upon the government to take care of them, unlike the libs who believe everything comes from the government.
    Its called personal responsibility. I understand that "responsibility" is another word the libs would like to get banned but I don't see that happening just yet.
  • Zazziness
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    Republicans "take responsibility" right until something goes wrong, then they play the blame game like a jilted wife on a talk show.
  • o
    NO-BAMA
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    @Zazziness "Play the blame game", is that something like Barry and the rest of the libs blaming Bush, ATMs, Kiosks and everything else for his own policies/regulations that causing the economic DEPRESSION and "fiscal cliff" that HES going to push the whole country over?
    Thought so. Just wanted to clear that up.
  • Zazziness
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    @NO-BAMA Don't answer your own questions if you're going to get the answer wrong. But you did just demonstrate what I meant -- see how you can't admit that any of Mr. Bush's policies contributed to our current circumstances?
  • methinks
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    @Zazziness Blaming Bush for Obama's trillion dollar budgets ain't happening.

    How about we place the blame on the Democratic controlled Congress that was in control the last two years of the Bush presidency and financial collapse occurred after Dodd and Fwank took over.
  • u
    Cheenoguy
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    @methinks
    Then wouldn't the blame for the extension of those problems be placed on the congress that has been so stifled by a republicans so in love with the filibuster that they filibuster the bills they call for a vote on? Seriously the "do nothing" congress called and they want an apology.
  • View all 14 replies >
  • u
    Realthinker
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    I resent the implication that saving for retirement is easy because Republicans are "wealthy". To the contrary, saving for retirement requires sacrifice for most people. We saved because we knew we didn't want to live on Social Security alone, and we did without to do it. Now we have reached retirement age and my husband cannot retire due to the economy, and the coup de grace? Obama now wants to confiscate and spend our IRA. It seems the sacrifice we made is his definition of "greed".
  • u
    Realthinker
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    @Denizen_Kate The Democrats are eyeing a plan to confiscate all 401Ks and IRA and put them into annuities. I'm not in a position to find the articles right now, but I will and get back to you as soon as possible.
  • u
    Realthinker
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    @Denizen_Kate Someone may have tried to calm some fears, but years of watching the government has taught me these ideas never go away. Like the raising and lowering of the threshold of estate taxes fluctuates depending on which party is in power, what the government ends up taking is a matter of degree. What likely happened is the Democrats decided it would help their re-election chances if they postponed this for two years. I am finding some things from last year. What I do know is our financial advisor tells us it is under consideration again.
    http://imkane.wordpress.com/2010/02/04/is-oba...
  • View all 6 replies >
  • texas_cutie75
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    I am a Republican, from a small socio economically disadvantaged predominantly Democratic town. I am in my 30's and have already begun to save for "retirement". My father and grandparents saved all their adult lives and have/had wonderful retirement years. I have seen countless families not be prepared for their "golden years", it's not something I want to go through!
  • methinks
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    The same for me. I started in my early 20's. My boss at the time said before you go out and splurge on things or go to the bar, you have to pay your bank account first, then everything else afterward. He came from nothing and was worth a few million in his later years because he ran a successful business and invested his money wisely.

    I'm by no means wealthy, but I'll be fine come retirement time...which isn't that far off!
  • methinks
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    I believe the Occupukes could take a lesson from this article. Instead of spending big $$ on smartphones and Starbucks, they could be putting that money away for their retirement and have something to live off of when they get there.
  • PayThatCEO
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    Besides myself, I work in a medical practice of 32 physicians. But for a couple, most are Democrats and I assure you, their financial responsibility is without question.
  • UnCommonBoston
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    Putting money aside when you have more money is easier. It is also a class issue. Poor people live dollar, day by day. Middle class worry about being able to pay their kids tuituion and other upcoming expenses. The upper class think about what they will leave behind for their grandchildren, immediate expenses are not a worry.

    If you can not afford food, how are you going to save for the future? Once again we putting our standards on people whose lives have little in common with ours. If you work for a company that offers a 401K it is easier to start saving. Walmart doesn't. Social Security is the best these people can hope for.
  • Thunderchicken
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    Having been poor and as such associated with other poor people, I've come to the conclusion that everybody (myself included) has more money than sense.

    Saving for the future, or even a rainy day, is something everyone can and should do. But some people no matter what their finances simply never will. My company offers a generous 401K plan but some people I work with won't participate.
  • UnCommonBoston
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    @Thunderchicken. Sadly, I think you are right. What I find interesting is we judge the poor by higher standards than we judge ourselves. We expect them to budget the little money they have and use it carefully and efficiently. We expect them to make the same financial choices many us are able to enjoy, not understanding they do not have the same choices.

    For example, toilet paper. I remember buying it a roll at a time because that is all I could afford. When I was a stay-at-home mom, I watched the specials and purchased items in bulk when they were on sale. Or I went to Costco. I had a car, so I could shop anywhere. Plus, I lived in a house with storage space. Toilet paper much cheaper when purchased in bulk, on sale is even lower.

    People with good jobs and solid credit ratings qualify for low interest loans when they buy a car. Others are forced to pay high interest rates. Being poor is expensive! They pay for services the middle class doesn't. They have problems we don't.

    Miss a few phone bills? Once it is cut off the charge to return the service is steep. The list goes on. We expect them make ends meet on minimum wage or welfare when we are unable to keep to a budget or plan for our financial future.

    We are so quick to judge. I am not sure where the idea that poor are living the high life off the government came from. Someone sees someone make a purchase they consider frivolous with foodstamps and the story is passed and magnified.

    The old double standard!
  • Thunderchicken
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    @UnCommonBoston

    It boggles my mind how many poor people smoke and drink though. When I was poor, both my mom and I still could find money for ciggs and my dad always had the fridge in the garage stocked with beer. Even though he rarely drank at home. As I said, more money than sense.
  • UnCommonBoston
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    @Thunderchicken I know! I don't get it either. I don't drink or smoke. When money was tight I worked in food service --- shift meals!
  • PayThatCEO
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    I don't think Republicans start saving money earlier. I think they come into a position to acquire money earlier and therefore identify with Republicans.

    Democrats, in years past, have typically come from working class families (mostly Democrats) where college wasn't always available. Remember, now, college bank loans haven't always been available. College was usually reserved for those who acquired scholarships or whose parents could afford it (mostly conservatives). It was usually reserved for those who wanted to BE something, not just go and get a piece of paper. My parents couldn't afford it, so I ended up working in an office right out of high school.

    We thought the American dream was having a job, getting a home and raising a family and retiring...which was happening until I got divorced. Now I'm trying to get back on track, but suddenly the American dream is no longer so modest. Now it's being wealthy and if you're not retiring a millionaire then you can just forget it. Now you're told if you're working class you ain't sh*t.

    What a burden we're placing on ourselves and our children. Suddenly happiness and the American dream is all about more, more, more.
  • Denizen_Kate
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    "College was usually reserved for those who acquired scholarships or whose parents could afford it ... " Or, as in the case of my parents, reserved for male offspring only.
  • Thunderchicken
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    Some things that I've noticed are that parents with money are better about teaching their kids about money. Most of my friends are very reluctant to discuss investing. I guess some people just get weird about money.
  • TheJimmy
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    I've always found it fascinating that Liberals tend to be much more right-brained in their thinking and Conservatives much more left-brained yet for some reason Libs are classified as "left" and Cons as "right."
  • Dan_Tien
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    You have no scientific study to back up that claim. The whole "right brain/left brain" concept was debunked some time ago. People use both sides of their brains, unless they have been brain damaged.
  • DogLady_1
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    These kinds of analyses really bother me... they are basing this on averages that could be skewed horribly... Among democrats, you have the spectrum of extremely poor who may be conservatiove, but they have aligned with the democratic party to get their needs met because the republican party pretends they don't exist. There are more millionaire dems in congress than pubs... there are more dems in ghettos than pubs. When you live below poverty level, it's hard to save for the future. This kind of media fluff is what keeps people from finding common ground to solve problems... I would love to see an article about how much the dems and pubs are the same!
  • Waynestew
    !
    Income definitely plays a huge role. A lot of Democrats are more likely to work at places that service to community peace core, nonprofit and so forth. Most teachers are Democrat. Basically most low-paying jobs all Democrat. The less money you have the less you can save #Boom
  • Politicskid
    !
    Republicans in general make 9% less then Democrats, so that's not really not a valid point. Could you give me another reason?
  • Waynestew
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    @Politicskid Are you stalking me now? This comment was posted Dec 13. Its late I'll deal with this question after church tomorrow.
  • TheJimmy
    !
    Used in a non-political sense the words "liberal" and "conservative" can pretty much answer the question of why Republicans are more programmed to save money.
  • o
    Sharpshooter
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    They aren't taught as children to count on Government for their welfare. Paying your own way doesn't mean using YOUR Own Food Stamps, it means working, earning, saving and paying with YOUR OWN MONEY.

    I know.... if you have money in the bank.... "You didn't save that..."
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