Saving for the Future: Germans vs. Americans

OK, not really, but I did read an article today that talk about the absolute piss poor savings rate most Americans seem to have. What was interesting was that they directly referenced German savings rates vs. those in the U.S. Although the article wasn't really about comparing the two cultural viewpoints (really it was about how to get people to save more through inertia in decision making), I was just struck by the fact that they used Germany as a comparison.

Having now lived in Germany for over a year I've had ample opportunity to experience German attitudes towards money. While Germans may save a greater percentage of their paycheck in many ways it is because they simply have to in order to pay for ordinary or extraordinary purchase. Unlike the U.S. where a mindset of living on credit prevails, Germans rarely use credit cards. In fact, in quite a few places they aren't even accepted. When they do use credit cards, they often have to pay the balance off in full at the end of every month. So instead they live in what is primarily a cash based society. As a result, in many ways they simply don't have a choice. They MUST save more in order to do things like buy furniture, repair their cars, take vacations. They can't simply put it all on a credit card and pay it off over a period of months. A radically different situation than what currently exists in America, don't you think?

Anyway, just an interesting article to read now that I've got a bit more of the German perspective going on here. I think the Germans have the better approach than we do in some ways, somehow it just seems like it's better to live within your means. . . .