Saving and Dieting, Revisited

I just read an interesting article which delves into the observation that thin people earn and save more than their obese counterparts.  I have been fascinated with the psychology of spending and clearly we live in a society where people are treated differently based on their looks, but this study is inferring additional things.  One is that being overweight is more costly, particularly in terms of having to spend more on healthcare and insurance. But, it also infers that teaching kids to maintain a healthy weight is a good way to be on a path to a better financial future.  I’m not sure the causality is in the right direction, but I do think it’s important for adults to guide young people toward good habits, both for choosing healthy foods and for being prudent with their money.  Here’s how I would approach it:

–Bring a positive view to things — I’m also struck by how Americans, and the media, tend to portray food with a very antagonistic relationship: Don’t eat this, that’s bad for you, too much fat, too much carb, and so on. Rather, it seems healthier to promote the joys of good food, the deliciousness of fresh spring produce and tasty ripe fruits. Similarly, young people should be encouraged to save and invest and learn the benefits (like saving for a trip) of managing their money well.

–Education is key — I (and millions of other viewers) have been watching Jamie Oliver’s Food Revolution that chronicles the efforts to help one town relearn good cooking and eating habits.  What has surprised me is how much people have forgotten about how to select and prepare food. Similarly with finances, it appears most people graduate college without a sense of how to create a budget, manage a paycheck or make long-term financial plans.

–Develop long-term habits that are sustainable — Crash diets almost always fail, same with crash austerity programs.  Developing a long-term plan that is practical is important.  My observation is that many people who watched their finances and weight spin out of control, find that a disciplined long-term approach in one area helps them in the other.

–Tough love may be needed — As I’ve discussed before, the no-nonsense approach of Jillian Michaels has shifted my view of exercise. Rather than coddling her audience, Jillian spells it out candidly.  Surprisingly, I’ve appreciated this approach and found her 30-day Shred program one that I can consistently follow (albeit not every day).  Similarly, many people need to take a candid, stark look at their finances and plan accordingly.

shared at this week’s Carnival of Personal Finance