Dave Ramsey: 7 Money Problems We Didn’t Have 50 Years Ago

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It’s not uncommon for many people today to get nostalgic for the past, especially when it comes to the financial past. 

Back in the day, it was a lot less expensive to buy a home, groceries were affordable and any debt accrued for your college degree could be reasonably repaid. (Bloomberg tweeted that a college graduate in 1970 had an average of $1,070 in student debt.)

What other financial problems did we not have in the past that we deal with in the present? Money expert Dave Ramsey shared on his website Ramsey Solutions seven money problems which didn’t exist 50 years ago. If you find you’re currently dealing with these now, he also shared his recommendations for how to mend these financial issues.

Guaranteed Retirement Funds

The post on Ramsey Solutions specifically highlights pension plans as guaranteed retirement money. According to the article, 41% of private sector employees were covered by pensions in 1960. Over the decades though, many companies have been unable to sustain this model due to retirees having longer lifespans and needing to draw these benefits for many more years because of it. 

Today, Americans are in charge of funding their own retirement. The good news is there are many accounts you can open and max out yearly, like a 401(k) plan and a Roth IRA, which help you save early and consistently for your retirement. 

Rampant Identity Theft

Did you know as of 2024 there is an identity theft case every 22 seconds? Over the past decade in particular, identity theft and fraud cases have been steadily increasing and victims of fraud are said to experience a $500 median loss.

The more we become digitally dependent, the more difficult it gets to not accidentally fall victim to a scam. What can be helpful, as the post on Ramsey Solutions suggests, is finding smart ways to safeguard your finances. You can purchase identity theft insurance to protect your bank accounts and cancel credit cards to reduce hacking attempts.

Healthcare Wasn’t As Expensive

According to the annual Milliman Medical Index, the average cost of healthcare for a hypothetical family of four covered by a PPO plan through their employer was $31,065 in 2023. The index projected costs would grow by 5.6% from 2022.

If you’re worried about potentially finding yourself in a financial bind over healthcare costs, the post on Ramsey Solutions recommends taking these helpful steps:

• Save enough money for a fully funded emergency fund with at least three to six months’ worth of expenses.
• Explore plans with higher deductibles as this may be able to help you lower your monthly premium. Make sure to talk it over with an insurance professional if you are interested in switching plans.
• Put the money you’re saving each month into a Health Savings Account (HSA). This helps cover deductibles, co-payments and other healthcare expenses like dental appointments or contact lenses.

Credit Cards Weren’t in Our Wallets

Today, credit cards are in more places than our physical wallets. They also occupy a place in the digital wallet stored on our smartphones and can be found in apps, like Starbucks and Uber, where we have our credit cards programmed as a form of payment. 

If you really want to eliminate credit card use altogether, the post on Ramsey Solutions recommends cutting up your credit cards. You can also eliminate your amount of monthly charges, and save yourself from accumulating future debt, by saving up enough money to buy the things you want. 

We Weren’t in Exorbitant Debt

Just how much does the average American carry as their debt balance? Regardless of your generation, CNBC reported in 2023 that the average debt balance is in the thousands. Gen Zers at age 20 carry an average of $9,593 while a 35-year-old millennial has an average of $78,396. And a 50-year-old Gen Xer has a whopping average of $135,841 in debt.

If you have debt, the best thing you can do is pay it off in full. The post on Ramsey Solutions recommends using debt snowball to pay off your balance: starting with smallest pieces of debt and working your way up to the biggest pieces.

Cheaper Cost of Living

Virtually every aspect of life, from the price of homes to the cost of cars and overall transportation, is significantly more expensive now than it was 50 years ago. 

What can be done to combat these costs? According to the post on Ramsey Solutions, cutting back on big expenses is a helpful strategy to counteract a high cost of living. You might be able to sell your car if you live in a large city with reliable public transportation or find a roommate to rent out an apartment with.

Budgeting Was a Way of Life

While it has been more than 50 years since the credit card was invented, admittedly many consumers today do rely on credit and debit cards for their spending needs. Not everyone has, or sticks to, a budget each month.

The best thing to do is get back into the habit of budgeting again. As old-fashioned as it may sound, budgeting allows you to track your spending and clearly understand how much money is coming in and going out every month and where it is heading.

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