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- The 1950s – Saving with the Christmas Club<\/a><\/li>\n\n\n\n
- The 1960s – Invest in the Future with Savings Bonds<\/a><\/li>\n\n\n\n
- The 1970s – The Certified Financial Planner is Born<\/a><\/li>\n\n\n\n
- The 1980s – The World is Yours with Everyday Use Credit Cards<\/a><\/li>\n\n\n\n
- The 1990s – Invest in Tech with Mutual Funds<\/a><\/li>\n\n\n\n
- The 2000s – Subprime Lending for Homeowners and Students<\/a><\/li>\n\n\n\n
- The 2010s – Cloud Accounting and Digital Banking<\/a><\/li>\n\n\n\n
- The 2020s – Trading Apps and Micro-investing<\/a><\/li>\n<\/ul>\n\n\n\n
\n\n\n\n1950\u2019s – Saving With The Christmas Club<\/h2>\n\n\n\n
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The 1950s are the quintessential American decade. We tend to think of the time sentimentally because it personifies everyday elegance, family, and the American dream. In truth, it was a time before women could open a bank account or line of credit without a man\u2019s signature, and Jim Crow law was still in full effect.<\/p>\n\n\n\n
Nevertheless, the post-war decade produced historic economic growth and low unemployment, and it is mainly remembered for this prosperity. After WWII, the economy grew by 37%, and the average American family had 30% more purchasing power.<\/p>\n\n\n\n
As the economy grew, so did the birthrate with the arrival of the first \u201cboomers.\u201d Growing families with disposable income started celebrating holidays in a big way. One of the biggest was Christmas. Parents who grew up in the great depression wanted to give their children comforts and advantages they didn\u2019t have. Nevertheless, a savings mentality persisted, and so things like the Christmas Club savings account were trendy.<\/p>\n\n\n\n
What Is a Christmas Club?<\/strong><\/p>\n\n\n\n
A Christmas club, sometimes called a holiday club, is a type of savings account where regular deposits are made throughout the year and then withdrawn to pay for holiday expenses like gifts and travel. <\/p>\n\n\n\n
The accumulated savings earned interest throughout the year. Banks and credit unions introduced the idea in the early 20th century. <\/p>\n\n\n\n
Christmas club accounts required holders to deposit a set amount each month and charged fees for early withdrawals to incentivize saving. These special accounts gained popularity in the 1950s through clever marketing campaigns and peaked in the 60s before declining throughout the 70s.<\/p>\n\n\n\n
Still a Good Idea?<\/strong><\/p>\n\n\n\n
Christmas Clubs and similar savings accounts are still a good idea. Unfortunately, most banks no longer offer them. You can still find them at some small credit unions and community banks.<\/p>\n\n\n\n
Sources:<\/p>\n\n\n\n
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- The Economy in the 1950s<\/em><\/a><\/li>\n\n\n\n
- Are Christmas Club Accounts Still a Good Idea?<\/em><\/a><\/li>\n<\/ul>\n\n\n\n
Back to Top – Money Trends by Decade<\/a><\/p>\n\n\n\n
1960\u2019s – Invest in The Future With Savings Bonds<\/h2>\n\n\n\n
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The 1960s kicked off a progressive social revolution that is still ongoing today. Young adults pushed for political, intellectual and cultural change. The decade brought the Civil Rights Movement, feminism, the Vietnam War, anti-war protests, the assassination of John F. Kennedy, and a widening gap between older and younger generations and their conservative and liberal ideologies. <\/p>\n\n\n\n
Amidst this unparalleled social upheaval, Americans were asked to invest in the future with savings bonds, and they did.<\/p>\n\n\n\n
Savings bonds became popular in the 1940s as a way for everyday Americans to support the war effort. They saw a surge in popularity during the 1960s. <\/p>\n\n\n\n
During Kennedy\u2019s presidency (1961 until his assassination in 1963), he encouraged Americans by bonds and helped stimulate a large enrollment in the program. While some bought bonds to show their patriotic spirit, many bought them out of habit and because they were considered a secure investment. <\/p>\n\n\n\n
Employers often offered bond purchases as a regular payroll deduction. Interest rates on bonds were higher in the 1960s than they were in the previous decade. At the time, interest rates on savings bonds floated with market interest rates. Meaning a high yield on other Treasury securities meant that more interest would accrue on savings bonds.<\/p>\n\n\n\n
How Do Savings Bonds Work?<\/strong><\/p>\n\n\n\n
A savings bond, which looks like a large cross between a bill and check, is bought for a face value. That value represents the bond\u2019s investment, which will accrue interest over time, increasing the bond\u2019s value until it reaches final maturity, typically in 30 years. Savings bonds are guaranteed by the Federal government, which is one reason they are considered so secure. <\/p>\n\n\n\n
Still a Good Idea?<\/strong><\/p>\n\n\n\n
People bought savings bonds regularly through the 1990s, but popularity has dropped off considerably since then. In January of 2012, banks discontinued the sale of paper savings bonds, but electronic bonds can still be purchased with a typical growth rate of 0.1%. <\/p>\n\n\n\n
Sources:<\/p>\n\n\n\n
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- Treasury Direct<\/em><\/a> <\/em><\/li>\n\n\n\n
- JFK Library<\/em><\/a> <\/em><\/li>\n<\/ul>\n\n\n\n
- Are Christmas Club Accounts Still a Good Idea?<\/em><\/a><\/li>\n<\/ul>\n\n\n\n
- The 1960s – Invest in the Future with Savings Bonds<\/a><\/li>\n\n\n\n
![\"1970s\"\/](\"https:\/\/lh3.googleusercontent.com\/3oo6fsO14gCjzpQBD4nzy9TYS8l8y6N__zLKda94HlIqjn3Gg6SkkcBrqQhOQut7t1HXBa7NQ0bi_UE3ocKfiWHm5bFl-t0Xv615yKav-0JQVsoYdXTud2crg4HtXwu2QJ5Exj_J\")
<\/figure>\n\n\n\n![\"1980s\"\/](\"https:\/\/lh5.googleusercontent.com\/bsprgX40lyrvJNZyS8ThtP51HT356Luo7xaA9AkVws4xZr0u2cZzbI4S5AjN35uRIToQbS4qD23PummFNw2M8zREl2EzTzTWGiwMu3SnT8dNonU66YV4vLHzgTWJvTcbAl44njCf\")
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