Nobody called it a wealth strategy. Back then, the plan was simple: save first, pay with money you already had, grow what you could, fix what broke, and keep the car until it quit. Not every household got rich, and a booming postwar economy certainly helped, but the records of that generation keep pointing to the same money moves. Here are 15 habits from the 1940s through the 1960s that look surprisingly smart today, and how many of them would you actually try?
1. Saving More Than a Quarter of Every Paycheck, One of the Habits That Built Wealth
Federal data show that personal saving hit 26.2 percent of disposable income in 1942 and 27.7 percent in 1943, then peaked at 27.9 percent in 1944. Economists often point to wartime shortages, which left fewer things to buy, and to the constant push for bond drives. By 1955, the rate had fallen to 9.7 percent, and in 1960 it was 10.1 percent. Many families carried those habits into peacetime, even after the pressure eased.
2. Buying War Bonds Straight From the Paycheck
Between May 1941 and December 1945, the Treasury sold nearly $186 billion in government securities, including more than $54 billion in war savings bonds. Workers were encouraged to buy through payroll deduction, and about 6 million volunteers helped run the bond drives. Each person could buy up to $5,000 in maturity value per year. The system turned saving into something that happened before the money ever reached the wallet.
3. Joining a Christmas Club
The first Christmas savings club was started in 1909 by the Carlisle Trust Company in Pennsylvania. Members opened an account, put in small amounts over roughly fifty weeks, in some cases as little as a penny a week, and got a check in November, just in time for gifts. It was one of the simplest habits of the era: pay for December in advance instead of borrowing after the fact.
4. Planting a Victory Garden in the Backyard
More than 20 million gardens were tended between 1942 and 1945, and USDA data cited by the National WWII Museum say they supplied 42 percent of all the produce grown in 1943. By 1944, more than half of gardeners said economic need was their reason for planting. A row of tomatoes outside the kitchen door was one less thing to buy at the store.
5. Canning the Harvest for Winter
Home canning peaked in 1943, with more than 4.1 billion jars canned in homes and community canning centers. Pressure canners were rationed early in the war because of the aluminum in them, so neighbors shared equipment, and home canners could apply to their local ration boards for up to 20 extra pounds of sugar. These habits stretched a summer harvest into the winter months, with jars of peaches and beans lining the cellar shelves.
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6. Making Do and Mending
Americans were urged to make do and mend, stretching what they had instead of buying new. The campaign encouraged altering clothing to use as little fabric as possible, reusing household goods and cutting back on energy at home and on the road. Mending a coat or reusing a jar was a small saving, but those small savings added up over the years.
7. Saving S&H Green Stamps
Nearly 80 percent of American households collected S&H Green Stamps in the 1960s and 1970s, according to historical accounts. Grocery stores and gas stations handed them out as a bonus; shoppers pasted them into booklets of 1,200 points, and full booklets were traded in for merchandise from a catalog. It was one of those habits that turned ordinary spending into something extra for the house.
8. Paying in Full or on Layaway Instead of Borrowing
Before credit cards, many Americans paid for big purchases in installments through layaway, which meant the store kept the item until the last payment was made. Department stores also offered charge accounts for valued customers, but the first real credit card, Diners Club, arrived only in 1950, followed by BankAmericard and American Express in 1958. For a long stretch, waiting until you could afford something was simply the normal way to buy.
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9. Putting Money in a Building and Loan
By 1930, building and loan associations had 12.3 million members and close to $9 billion in assets. Members pooled their savings, owned shares and earned dividends, and many associations required a waiting period of 30 to 60 days before money could be withdrawn, which discouraged dipping into savings. They were a major source of affordable mortgages, at a time when state banks often demanded down payments of 60 percent or more, and joining one was among the habits of families set on owning a home.
10. Saving a Big Down Payment Before Buying a House
In 1940, the main mortgage was a balloon contract, with a down payment of 20, 40, or even 50 percent and about ten years to repay. Buyers had to save a large amount before they could even look at houses. Still, the homeownership rate climbed from about 43 percent in 1940 to about 64 percent by 1960, according to the St. Louis Fed, as incomes rose and veterans’ benefits such as the GI Bill expanded access.
11. Burning the Mortgage
When the last payment was made, some families held a mortgage-burning party and set the loan papers on fire. The tradition marked a simple goal: owning the home free and clear. It has faded over time, and NPR reported in 2009 that about 30 percent of homeowners had no mortgage debt, a group that tended to be older. Paying a loan off early was one of the habits that left many older homeowners with no monthly house payment.
12. Eating at Home Most of the Time
In 1965, about 70 percent of American food spending went to grocery stores and other retailers, compared with 52 percent in 2005, according to the USDA’s Economic Research Service. In other words, more meals were cooked in the home kitchen, packed in lunch boxes and served at the family table. A restaurant meal was more often a treat than a routine.
13. Getting by With Fewer Cars
In 1960, about 22 percent of American households owned no car, and another 22 percent owned two or more, compared with 8.5 percent and 59 percent in 2020, according to figures compiled by Transport Geography. Fewer cars meant less spent on payments, insurance, gas, and repairs, and one of the quieter habits of the era was simply making a single vehicle last.
14. Patching Tires and Keeping the Old Car Running
Tire rationing began in January 1942, and consumers were limited to patching worn tires or replacing the tread. Sales of personal automobiles were halted in February 1942 as factories shifted to jeeps, ambulances, and tanks. Owners learned to keep what they had running, long past the point when many drivers today would trade a car in.
15. Keeping the Holidays Simple
During the war, Americans were asked to scale back the holidays: food and drink, gifts, decorative electric lights and long-distance phone calls were all trimmed under rationing. Many Christmas traditions took shape in those years, shaped by shortages as well as optimism. Keeping celebrations simple left a little more money in the bank, and it is easy to see how such habits could outlast the war.
Not one of these habits is a get-rich-quick trick, and the world has changed a lot since then. But the common thread is easy to spot: spend less than you earn, avoid debt when possible, and make what you own last. Which of these did your grandparents do, and which one would you actually try today? Share your answer in the comments.
