When Dollars Dwindle

Dollars do dwindle. In various ways. When the population of a city or state shrinks, dollars dwindle. When interest rates reach all-time lows, we see only pennies in our returns. Interest at .01% does get recorded eventually.      

When I was chaplain years ago in a retirement community, I discovered that many were dependent on returns from their CDs. Not bad when the interest was significant but those on fixed incomes today, unfortunately, do watch their dollars (and their welfare) dwindle.

We argue that this hits everyone. True. Or at least almost everyone. Banks try quietly or subtly to pursue fees like charging for less than a minimum in an account or ding with fees for using a debit card or an ATM not of their vintage. Airlines also try to get hard cash from seat reservations or checked luggage. And Auto Rentals and more. It happens.

Seniors, many on fixed incomes, may be hurt inadvertently. I have a 30-year paid up GI insurance policy which pays a modest dividend. Two years ago it was about $102. Last year it was $95 and this year $88. Our condo tax assessment each year rises while its value falls. And we could go on . . .

I often see kids emerging from their school bus after a rather short ride and remember how I walked a mile and a half to school (or rode my bike). But when money dwindles, communities must make ends meet. Fixed expenses often cannot be lessened so other areas get hit like  police and fire fighters. Pensions escalate and can take a hit because these funds are ripe for today, not tomorrow. A perceptive reader recently informed me that monies we have put into Social Security funds do get interest paid. I'm relieved.

Senior moments do include balancing budgets (or creating one). Interestingly, earlier in life we often lived from paycheck to paycheck. Then we went into a mode where we did have some left over and learned how to spend (or invest) it. Or go into debt. Now some very respectable ol' timers worry whether they can make ends meet just like not a few youngsters who wonder if they can ever pay their debts or find a job or afford to get hitched.

I guess we oldies and these newsies have more in common than we thought. Maybe we all just might have to walk more and spend less. We made it then so why not now?     

PS  A trivia quiz just crossed my desk. Out of five concerns: Debt, Job Insecurity, Rising Health Care Costs, Mortgage Payment and Shaky Economy, 88% guessed wrong. Rising Health Care Costs received 40%. Agree?