The biggest change in our lives in this region over the past half century has been the emergence of a money economy. Whereas people lived busy and productive lives through subsistence alone in the not too distant past, most families now purchase most of their food, clothing and other items that they see as essential parts of their lives. With that change in thinking, there needs to be an accompanying change in how people prepare for the future. We need to start saving money and teaching our children to save.

I recently learned that over 40% of the families in our country today do not have savings accounts. That percentage is certainly even higher in our part of the country. Without savings, families will not be able to plan for a better life in terms of owning a home or business, preparing for an injury or illness, or having higher education available for their children. Worse yet, if parents do not develop a saving philosophy it is not likely that their children will do so either.

The basic purpose of our Borough Economic Development Department is to increase the assets of the people of this region (assets are defined as things that people own that are of value and use). An important part of building assets is creating opportunities for people to earn income. However, it is equally important to have people save a portion of their income on a regular basis if they are going to be able to build their individual and family assets.

Our Economic Development Director was a guest at an IDA (Individual Development Account) Summit in Anchorage last week to review a process designed to assist people in creating assets for themselves. The concept is simple: In order to motivate and help people save enough money to start a business, buy or improve a home, or pay for special training or education, an agency such as ours can create a savings account in partnership with individuals. If a person creates a plan to save a certain amount over a period of time, such as between six months and three years, the Borough can match that savings with a like amount or even double that amount. Here's an example: If someone wanted to build an addition onto their home in order to open a small store, they might determine that materials would cost $3,600. Under the IDA plan, they would then put $100 per month into their IDA savings account for one year. At the end of that year, they would have not only their $1,200 but an additional $2,400 in matching funds from the IDA program. They would also have whatever interest the money had earned over that time. They could then proceed with their building project and create an asset for themselves.

I think the program is an excellent idea and could help people learn the value of saving. We hope to introduce our own version of the IDA plan to our residents in the near future.

I believe saving is an important part of the overall personal "wellness" campaign that we need to encourage. It is a "live for today only" philosophy that creates difficulties for families in the form of poverty and alcohol and drug abuse. We will be healthier in every way when we consider the future in all that we do.

In the meantime, I would like to encourage everyone to start a savings account, adults and children alike. Here are a few ideas on how even those with the smallest of budgets can put $50 to $100 per month into savings:

1) Take full advantage of local fish and game as part of your diet. You will save money and eat healthier!

2) Control the heat in your home. By turning the thermostat down a few degrees you will be saving fuel cost. Also, heat with wood whenever possible.

3) Reduce or eliminate consumption of soda pop (and alcohol) and your bank account can grow fatter while your body becomes thinner and stronger. Water is always the healthy choice!

4) Stop smoking. There's $150-$300 per month in your savings account right there and you will make your family proud. It's the healthy choice.

5) Control or eliminate bingo and pull-tab activity. Gambling is a huge drain on the budget and a huge loss of time that could better be spent with the children.

6) Put all, or at least half, of each child's PFD or other unearned income into a personal savings account for that child. Their excitement about the future can only grow when they know they are saving for it!