My partner's family lives in government subsidized housing and they get the full array of benefits including disability and food stamps. His mother buys new luxury items like purses from Coach regularly with cash from under the table jobs. They have more TVs, newer smartphones and iPads and lots of other expensive goods, and yet they have zero savings. I don't understand the thinking there.

I just hope their retirement plan isn't to live with my partner and I.

At least in the U.S., putting that cash into savings would make it visible, putting their government benefits at risk. They probably don't make enough to survive -- those TV's and smartphones might only add up to a month or two of rent alone -- so they're trapped.

You can bet your ass that the line of thinking is "They will support us"

I've known three women in the past year who receive benefits and do work under the table for cash. One told me a story about how bad it was when she started making more money and lost the benefits and how it "wasn't worth it." Another has two kids, is unmarried to get more benefits, and even though she job training said that she is never going to get a job that pays a lot because she wants to remain on food stamps. The other has an unreported side business that brings in about $1500 cash that she doesn't report.

Might be worth it for you to have a small place so there is literally "no room" for your partner's family...

Think about it. If you've got nothing and few prospects to ever have anything then why even care?

You might as well get some bit of happiness from something since everything else is awful. People want to feel good.

Were you poor or just broke while you were young? Poverty is far different from being in college and not making much. Poverty is much different than being short on cash. Poverty includes having limited options ahead of you and the prospect of always being poor.

I had the prospect ahead of me of always being poor. I decided to forego some immediate pleasures like having cable TV, expensive Internet, eating out, seeing lots of movies, new clothes/shoes, name-brand products, etc. so I could save up, go to school, and get my life in order.

What you mention may well be their line of thinking. Nothing wrong with people thinking whatever they want. I simply did not want the kind of future that such a lifestyle would bring me (i.e., remaining poor).

Now think about the time you were poor and the time you had money, and try to see whether you are where you are today because you were saving money.

Saving money, and leaving cheaply when poor will help you develop a habit for when you are financially in a better place.

However saving 20% of your salary when you make, say $2,000 per month in NYC/SF/LA, is not going to be possible. Not only that, but it would take 4 - 5 years to get to $20,000.

My thinking is there is a minimum people need to make before they can save meaningfully. Below that point, saving is just an exercise to get ready for a better financial position/earning.