Economy Why are Americans so bad with handling money?

[PhitePhan]

A combination of social pressure to appear successful that is amplified through the internet and a lack of self control to resist this and other impulse buying

It’s classic addict behavior- short term pleasure seeking in order to soothe the underlying mental and emotional pain associated with a vapid and meaningless existence.

At least that’s what it is in my case, I can only assume it’s the same for everybody else.

 

[no fat chicks]

Yea let's not blame skyrocketing cost of living and stagnant wages.

Blame poor people.

 

[Blunderbuss]

Yea let's not blame skyrocketing cost of living and stagnant wages.

Blame poor people.

While I agree this is probably not the best time in our lifetime to make a thread like this, we cant act like this is hardly a new phenomenon. I took this more as a shot at those who do have the means of having an affordable life but still overindulge. When my wife and I went to get our mortgage, we were making far less than we currently do. Our broker said she was astonished at how much we saved vs how much we made. She then told us of people coming in who would make far more but had nothing left over, because they were going into debt for things like an ATV or a boat. Cool shit to have for the sake of it, basically.

 

[CieloLuce]

Not being educated and well...being bored. I literally heard from ppl that shopping therapy is a legit thing.

 

[HeffDoesWant]

American law is designed around corporations being allowed to exploit the population.

Alot of the shit which is legal in the US is illegal elsewhere.

Student loan programs being an obvious example.

 

[UFCUCF]

Is this about what people pay for their cars every month?

I have never purchased a car with credit in my life. Sounds like I’ve saved a bunch of money.

 

[PG29 red0 Jr]

American law is designed around corporations being allowed to exploit the population.

Student loan programs being an obvious example.

The student loan program is ridiculously predatory. The public school system pushes it on young kids soooo hard too.

 

[curryjunkie]

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

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

 

[Ruprecht]

In terms of the OECD, the US is strictly middle of the pack in debt to income ratio.
Lots of people living on the never never.
Not really surprising when the sort of vacuous consumerism that conflates purchases with identity, and status as a matter of keeping up with the Joneses, is what capitalism has been preaching since at least the Cold War.

 

[chrisdiaz]

How is this only an american thing? Ever seen dubai? Vaniety and brand name slavery isnt unique to america. People are dumb and most dont think for themselves.

 

[Long Dark Blues]

People are dumb.

 

[DoctorNick]

Because corporations have trained USA that debt is normal and nothing to be ashamed of.

Back in the 90’s, people would save up to go on a vacation. Being in debt was seen as a bad thing. Now everyone has a credit card. I was at a $36 buffet per person and the table next to me had 8 high schoolers. When I was in high school and even in college, I’d buy $1 chicken sandwiches at fast food places (I sound old) .

Remember the days when Arby's would do 5 for $5? I member

 

[tastaylvr]

I'm not sure for other countries but there is almost zero financial education in our schools. Barely learn the difference between credit and debit.

most people don’t need to know anything about finance lol

it is useless for most people

there is zero benefit to a society that learns anything about finance

if anything it would make everyone more poor in the long run

 

[WhiteMousse]

There's probably no one single factor here but yes, people generally are bad with money and the biggest reason is they don't understand where their money is going. Cognitively it's just a card they swipe, and they get stuff. But if you were to show them a chart of how much money they spend per week or month on stuff like eating out, it would give them an instinctive emotional curtailing. Food is where people usually lose a LOT of savings.

Having said that, americans are getting absolutely screwed with rising costs and wages not increasing accordingly. Food prices are going up so you're not saving as much by cooking. Rent is skyrocketing and interest rates everywhere are awful.

It's hard to afford things today.

 

[JudoThrowFiasco]

It's not an American thing; Americans aren't even top tier when in comes to personal debt to gdp ratio.

 

[jk7707]

Sure, some people make plenty of money and are just bad at managing it. But some people are really struggling. Plenty of people are stuck spending 50+% of their income on just rent and childcare. That doesn't leave a whole lot for much else once you factor in healthcare, food, vehicle payment, etc, and God forbid you have some kind of major health emergency.

So I think both situations happen frequently in the US.

 

[Mr Holmes]

I think envy causes a lot of it. They see their neighbors with an expensive car or boat and feel the need to do the same. And people don't realize how much little things like eating out, expensive coffee, subscription services, etc add up.

 

[Long Dark Blues]

most people don’t need to know anything about finance lol

it is useless for most people

there is zero benefit to a society that learns anything about finance

if anything it would make everyone more poor in the long run

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.

 

[weed]

I got my new Jordans & two AR-15s in each hand. fuck yeah. I mean, America, fuck yeah.

 

[Renard]

Considering the median salary is $40K, for most people they're genuinely pressed to make mortgage or rent, make their car payments, cover school expenses, buy necessities, buy food, etc. What you're describing sounds more like people making $100K+ but spending it poorly, those exist too but it's not the majority.