The Savings Habit

Whitlowe Green began his teaching career in 1937...where he earned $700 a year. He retired in 1983...at a salary of  $28,000 annually. Whitlowe Green spent most of his career teaching economics to seniors at Yates High School, which is an inner-city school in the Houston school district.

Upon his death in 2002 at the age of 88, Whitlowe Green left more than $2.1 million to his alma mater, Prairie View A&M University...the largest single-donor in the university's history.

Whitlowe Green was born in Bastrop, Texas (outside of Austin) came of age during the Great Depression and virulent racial segregation. He never married, and lived in a modest brick house in northwest Houston.

Mr. Green was notoriously frugal. For years he rode the bus to school. His colleagues were shocked when he finally bought a car. He wore second-hand clothing, purchased out-of-date meats, and shopped at auctions. Once, he stopped speaking to a relative of his for two years...regarding a disagreement over $6.76.

Whitlowe Green was a savvy investor...and used stocks, mutual funds and annuities. During the later years of his life, he spoke to his personal banker 3-4 times weekly. Every conversation revolved around his desire to have his savings go to Prairie A&M. When he was sick with cancer, he often made his personal banker promise that his beloved school would get the money.

University officials hadn't met Green before receiving the gift, nor did they solicit the donation.

Among educators, Whitlowe Green does not appear to be an anomaly. Many teachers, from elementary to university levels, seem to be adept at establishing the savings habit. To bolster this argument, in a recent study by the Employee Benefit Research Institute, it was revealed that college faculty are better prepared for retirement than other working Americans.

95% of higher education faculty have begun to save for retirement, compared to 69% of all working Americans. 66% of higher-education faculty have attempted to determine how much money they will need to live comfortably in retirement, as compared to 42% of working Americans.

As is often true, it is the savings habit, not income levels, that seem to be the ultimate determinant of savings success.

Given Whitlowe Green's aforementioned modest income levels, the miracle of compound interest may also have been a factor in his largesse.

Comments

[henry bemis]

Whitlowe did not work at an "inner-city" Houston school. But merely at a city school.

[Air Max]

Mean I just read through the entire article of yours and it was quite good but since I'm more of a visual learner,I found that to be more helpful.