LESSON VI SAVING AND ECONOMY Most of the people who own property are those who save. But many people do not know how to save. They say to themselves, "Next week I will save part of my pay." But when the next week comes, they wish to go somewhere, or they wish to buy something, and they spend their money as before. If a man does all the things he wishes to do, and if he buys everything he wants, he will probably never have any money left to save. For saving is spending less than you earn. If a man is paid twenty-five dollars each week and spends it all, he is not saving. The best way to begin to save is to start a savings account at a good bank. If you deposit two dollars each week, or ten dollars each month, you will be surprised at the amount you will have saved in a year. The bank will pay you interest for allowing it to use your money. This will be added to the amount you have saved. But to save, you must practice economy. What is economy? Everywhere we go we hear the word. We see it in magazines and in newspapers. We hear people talking about economy, in factories and on the street. What is the meaning of economy? One meaning of economy is getting the most value for the money you spend. Economy is more than saving. It is spending your earnings wisely. Suppose a man is buying a suit of clothes. There is one suit which sells for $22.50. It is of good material and is made well. There is another suit priced at $15.00. will wear for two years. The second suit its color and will wear but one year. The first suit will not keep The man buys the $15.00 suit. In a year he has to buy another. Is this economy? No, it is not always best to buy an article because it is cheaper. A cheap roof on a house will wear out soon and allow water to come in. The cost of repairing is equal to the difference in price between a cheap roof and a better one. And in the end you will have, at best, only a poor roof. In each of these cases it would be better to pay a little higher price and get the better value. Many foods, however, which are cheaper in price than others have been found to have the same food value. It is better economy to buy these foods. The few cents saved on each article soon make dollars which can be added to the savings account. Find out what these foods are. Another meaning of economy is the preventing of wastefulness. There are many holes or leaks through which wealth is wasted by ignorance or carelessness. Whoever stops these leaks, or saves what another would lose, practices good economy. For example, our industries to-day use scrap and other waste materials, which years ago were thrown away. Thus many useful articles are made, and work is given to more people. Millions of dollars have thus been saved to the nation. Wise economies make everyone better off. Economy means the wise saving of wealth, which is the same as creating wealth. Questions and Topics for Discussion Most of the people who own property are among those who do what? What is the best way to begin to save? If you deposit two dollars each week for a year at 4 per cent interest, compounded semi-annually, what will you have at the end of the year? If you deposit ten dollars a month, what will it amount to at the end of the year? In order to save what must you practice? What is the meaning of economy? Why was it not economy to buy the $15.00 suit? Tell why a cheap roof on a house is not economy. Is it economy to buy cheaper foods if they have the same food value? What kind of foods would this apply to? Would it apply to such a food as milk? Give your reasons. What is another meaning of economy? In what way is preventing wastefulness economy? What "leaks" do you know of that have been stopped by economy? What "leaks" do you know of which have not, as yet, been stopped? Whom should you tell about them? How do industries to-day use various parts of their products, which years ago were thrown away? How has this economy helped the nation? Copy into your notebook the last sentence in your reading lesson. Write what this sentence means to you. Discuss: Wise economies. Unwise economies. LESSON VII GETTING RICH QUICK We have seen in the preceding lessons, that wealth belongs to those who work or are otherwise useful, and that it can be acquired by saving and economy. But there are some who do not wish to work. They are not willing to save or to practice economy. They wish to obtain wealth at once, and without any effort of their own. Such people as these are caught by the following advertisement, similar to one which appeared in many papers not long ago. $$$$$ GET RICH QUICK! The X. Y. Z. Diamond Mine is the luckiest find of THING. Diamonds have tripled in value in the last ten years. $$$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ Many men and women received personal letters offering a tip on the Diamond Mine. These letters included a chance to buy twenty shares. The stock was going fast. It looked like a chance to get rich quick. But in four months the offices of the X. Y. Z. Diamond Mine were suddenly closed. All salesmen disappeared overnight. Detectives went on their trail. In a few weeks headlines like the following appeared in all the newspapers: TWENTY MEN CAUGHT SELLING People who bought X. Y. Z. Diamond Stock The people who had invested their money, in many cases the savings of a lifetime, had been robbed. The X. Y. Z. Diamond Mine existed only on paper. The stock certificates were worthless. This is but an example of what is happening all the time. Such things are not always found out, for people who lose money in this way do not like to advertise their mistakes. They are ashamed to let their family or friends know about it, so they do not tell the police. For every swindle that is found out, a hundred are not found out. |