When I studied personal finance in college my teacher always said that keeping money under mattress is one of the most secure ways to save your money. But really, it is not true, and not many of us millennials would do it anyway. But I know where he is coming from. This advice would’ve been very useful some 11 years ago, but since then economy changed for the better.
The Financial Crisis 2008
If you where graduating in those times, it was really tough for everyone. The market crashed, and many people lost their jobs and their money. Banks simply didn’t have the money to be able to give it to back to people. The FSCS protection didn’t work back then yet as well. So, if the bank didn’t have money, then you didn’t have money. And only some fraction of people where able to actually withdraw their money from their bank account to not loose it completely.
The people who were able to do that, a lot of the time didn’t have a special safe or a place to put their large sums of money away from other people’s eyes safely. So they started putting it under the mattress. I can see how this was the only logical solution as you can be basically guarding it even when you’re asleep.
Just like after any crisis, the world is never the same as it was. And this was the case with the mattresses. A lot of people just continued this habit, and I don’t blame them – it works, just not as safe now as you would imagine. Nowadays, there are still people who put their savings under their bed, or at home in their safe.
They Don’t Trust The Banks Anymore
And thus, after such crisis, these people never actually recovered from not trusting banks completely. They might be thinking something like ‘What if the next crisis happen and they won’t be able to give my money back?’. This is a fair response to a traumatic experience. Banks work really hard to help people see the hope and the new order of things that prevent this from happening more.
But there is a good chance that they will never trust banks anymore. It is their choice and they stand by it. The best that we can do now is to choose what is best for us independently from their choice, and to bring a little compassion into this matter.
Thank you for reading this post, I’ll be back to you with more money wisdom’s for artists tomorrow!
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