That is a good question. So many cannot afford to replace anything that breaks down. They would more than likely replace on credit which hurts them even more. My husband always put the max he was allowed into his retirement fund when he was working. They always matched what he put in so he retired on a good retirement plan. We also worked hard to pay off the house not know that one year after the house was paid he would have a stroke. Though he did work for 2 more years with a helper, as his company was really good to him and carried him till he could retire with full benefits. So in some ways I guess we were preparing for a big change in our lives that was not expected. We never relied on social security though we both are getting it. That is what we set aside and just let it build. So when the air conditioner had to be replaced we were able to pay cash. We are on a fixed income as being retired but we save through gardening and don’t eat out a lot as DH is on a salt restricted diet and it’s hard to eat out when you have diabetics and salt restrictions. So I cook almost every day. You would be surprised at how much you can save like that.
But I am guessing that folks that don’t have a good paying job, and has rent, car payment and what other bills may very well make it hard to save and they don’t teach you in school anymore on how to manage money. In fact I really don’t think a lot of parents are teaching their kids how to save either.