As my economics professor put it: "My generation's parents grew up during the depression, when thousands of banks failed. Then we lived through a period of double-digit inflation. Banks were prohibited from paying more than 5.25% back then, so only an idiot would put his money there. Then we lived through the S&L crisis, when thousands of S&Ls failed. Is it any wonder that we would rather spend our money than put it in the bank?"
Banks weren't insured back then. They have been since. I think you will find a disproportionate percentage of your grandparents "investments" were nothing more than stashing money in the bank, which paid a fairly decent interest rate from the mid-50's till the early 90's. By today's standards, 5.25% in a savings account is almost unheard of. CD's and other liquid investments cap out at around 6%, if you have $50K to tie up someplace temporarily
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There is also a big difference in the way previous generations thought and handled money.
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