Economy Why are Americans so bad with handling money?

[86'd]

Because in a consumption based economy, where the worth of your money diminishes over time, society is geared toward spending and not saving.

Yes, saving diminishes it and investing into retirement accounts is still putting your wealth into a company that is required to have people consume.

The wealthy may be considered “more financially educated” because they put their money into a company’s stock like GM. But those wealthy people benefit off others who sign their names away on loans for vehicles they cannot pay.

So it’s not even in the best interest of the wealthy to teach others financial responsibility.

Which is why it would hurt the economy to have a bunch of financially literate people

 

[Possum Jenkins]

unfettered capitalism has produced a pliant class of consumers who are conditioned to think owning stuff equals happiness

I'd take it a step further and say that this is the logical outcome of the capitalist system, period, fettered or unfettered.

The system is based on endless, constant consumption, so of course things like "retail therapy" and shopping addiction are gonna exist. Unfettered capitalism is gonna take you there faster, but eventually all roads will lead you there.

 

[86'd]

“the way Jeff Bezos see it is consumerism is the reason for us having a better lifestyle than previous generations and he wants future generations to have an increasingly better lifestyle.”

And all this consumption produces waste which is why consumerism and Lord Bezos will lead humanity into space and mars.

Keep spending you dolts

 

[tenniswhiz]

So it’s not even in the best interest of the wealthy to teach others financial responsibility.

Which is why it would hurt the economy to have a bunch of financially literate people

LOL
Sounds like the description of a big poker game

 

[fedorthegoat777]

I honestly can't believe people have car payments, they are so expensive.
Buy a cheap 5k car in college or when you are starting out. Little later, pay cash for a 10k car. Then buy a 20 - 40k truck or car as you get older

 

[ColemanwastheGOAT]

First of all, dont give me that shit how people are struggling with basic needs so they have to use credit cards just to make ends meet. I know and YOU know that's bullshit. People are buying things they don't need and are borrowing money at a super high interest rate to buy that thing they don't need... when they already owe tens of thousands of dollars with a 25% interest rate on credit card debt

I know plenty of people that are horrible with money. I think over half of everyone I know do not know how to save. This girl I know who has been crying about money problems ever since I met her just bought a brand new car... over $45k with a super high interest rate. She told me she's too embarrassed to tell me what her interest rate was. And she's already DROWNING in credit card debt BEFORE she bought the car. It's not just me. We all know a LOT of people who just spend, spend, spend.

Americans now owe over a TRILLION dollars in credit card debt

1 trillion in credit card debt for 300M+ people doesn't seem that had when one single organization in the US is over 30 trillion in debt.

 

[86'd]

LOL
Sounds like the description of a big poker game

Which it is. The house always wins. Big banks have money to recruit mathematicians from Ivy League schools and MIT and they know how to make money.


So when the dumb right wingers on here attach morality or values to things like home or car ownership, just know they have no clue what the repercussions of such proposed policies would do. Which if their 401ks or pensions are invested into US treasuries or companies like Tesla etc they would lose.

It pays to loan wealth to people so they can consume. It pays to make lower classes have more access into a middle class lifestyle and you have to make it attractive so more people want to participate

 

[tastaylvr]

Are you talking about finance the discipline or financial literacy in general?

Or are you being sarcastic? Sorry, I'm weaning myself off of coffee and my brain no work gud.

What is financial literacy to you? If it's the ability to make money using money then most people should never learn it. It is a pointless endeavor without having an over abundance of money. Even if you have a lot of money then you should just hire someone with the skills to do it for you.

Looking over your weekly earnings and making a budget is not "finance". It's just basic common sense.

 

[tastaylvr]

So it’s not even in the best interest of the wealthy to teach others financial responsibility.

Which is why it would hurt the economy to have a bunch of financially literate people

This is actually wrong. It would hurt the economy if everyone was financially responsible. If every single person was frugal and spent their money on the bare minimum, the economy would crash.

 

[mozfonky]

First of all, dont give me that shit how people are struggling with basic needs so they have to use credit cards just to make ends meet. I know and YOU know that's bullshit. People are buying things they don't need and are borrowing money at a super high interest rate to buy that thing they don't need... when they already owe tens of thousands of dollars with a 25% interest rate on credit card debt

I know plenty of people that are horrible with money. I think over half of everyone I know do not know how to save. This girl I know who has been crying about money problems ever since I met her just bought a brand new car... over $45k with a super high interest rate. She told me she's too embarrassed to tell me what her interest rate was. And she's already DROWNING in credit card debt BEFORE she bought the car. It's not just me. We all know a LOT of people who just spend, spend, spend.

Americans now owe over a TRILLION dollars in credit card debt

I suppose there are many reasons, keeping up with the jones', high cost of living, time constraints, bad modeling by parents but I'm sure one of mine is just managing stress. I don't make or spend a lot but when I do spend, it's usually just to take a break of some kind from the headaches people give me.

 

[Long Dark Blues]

What is financial literacy to you? If it's the ability to make money using money then most people should never learn it. It is a pointless endeavor without having an over abundance of money. Even if you have a lot of money then you should just hire someone with the skills to do it for you.

Looking over your weekly earnings and making a budget is not "finance". It's just basic common sense.

Many people lack common sense and need to be taught.



Budgeting, comparing savings vehicles across various institutions that offer them, that if you take a student loan out then you are obligated to pay it back, what assets best work for their savings goals, etc.

 

[86'd]

This is actually wrong. It would hurt the economy if everyone was financially responsible. If every single person was frugal and spent their money on the bare minimum, the economy would crash.

That’s literally what you quoted is saying. Re read it carefully

 

[tastaylvr]

Many people lack common sense and need to be taught.



Budgeting, comparing savings vehicles across various institutions that offer them, that if you take a student loan out then you are obligated to pay it back, what assets best work for their savings goals, etc.

You can't teach this. You either do it or you don't. It's something internal.

Do you think people don't know these things? They know but they can't control it. It's human psychology. These companies spend billions studying human psychology for this very reason.

 

[tastaylvr]

That’s literally what you quoted is saying. Re read it carefully

my fault

I misread the post

 

[Dalarna3]

Why save up for a house you'll never be able to afford?

 

[fedoriswar37]

Most people just have no self discipline when it comes to what they need and what they . " it's only 20$, it's only 50$" adds up to so much money spent on shit you rarely need.

Some people manage to survive on the amount of money people manage to waste on nonsense.

 

[fedoriswar37]

Low IQ people gravitate to high price cars. I know a guy who is whining about how he'll never own a home, who is at the same time looking to buy a $85000 car. People really take the Fast and Furious movies to heart.

I think high priced cars are a psy-op by the car industry, constantly associating high price cars with being cool, getting girls, having success, etc.

Nah they're suite toys to have. Nice to look at, nice to drive in. Meticulously well put together piece of machinery .

Problem is most people need to pay their fucking bills as opposed to thinking they need the luxury of that.

 

[SummerStriker]

People are bad at money because spending it is a status symbol, but you aren't allowed to talk about your finances because of fear of either jealousy or losing face.

I have a wonderful system for buying and holding diversified index funds while lowering my volatility AND getting exposure to the risk factors that mirror REITS without paying for REITS. I can't fucking tell hardly anyone in my life what to do because they are balled up wads of emotion getting fucked by their money managers, or just spending it all. Worse, if you do save and invest successfully, you're like Ebenezer Scrooge, storing up freedom while everyone else is fucked.

And what most people can afford isn't the pop culture experience. If you don't own a cellphone, don't drink, and don't eat out, you could probably save 500 bucks a month and fully fund a Roth IRA and retire rich, but that sounds fucking stupid.

 

[Bagatur]

I dont think it's unique to America. Stupid people are bad with money. In the US, it is just much more easier to get deep in debt with banks handing out credit cards like cookies. Some might even say that it's predatory, but no, they wouldnt do that, would they?

 

[SandisLL]

Because people from other countries don't have enough money to even be bad at handling it.

You are so sure about stuff you had posted?<45>. LOL.