It is often claimed that people, even offsprings, should preserve money for their future needs. In my view, people should have some extra money that can assist in feeling safe in certain situations. However, people, in particular youth, need to comprehend that they should not be afraid to spend money on something.
On the one hand, spare money that people save for the future financial security in diverse situations. First of all, having savings reduces the stress of living paycheck to paycheck. For example, in case of emergencies like job loss, health issues, or unexpected expenses, putting money aside for the future can help pay for everything without borrowing money from anyone. Secondly, having savings can assist in avoiding taking on debt when unexpected costs arise. Instead of using credit cards or loans, people can utilize savings to cover costs, which prevents them from falling into a cycle of debt.
On the other hand, some people can be so fixated on accumulating money that they are afraid to spend it on something necessary, putting it off until later. Firstly, young people often have a broader horizon for investing and making a profit than older generations, who are often less knowledgeable about it. They teach young people to save too conservatively or keep too much money in savings accounts, which can lead to missing out on higher growth opportunities. Secondly, there is often inflation risk. Money saved in traditional savings accounts may not keep up with inflation, meaning the value of the savings may diminish over time.
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To conclude, I agree that people should save some money for extra situations. But there should be some kind of balance, so that there is spare money but also no missed opportunities and fear.