Horror Show

Why do so many Americans think their finances are a “horror show”? 

“Almost a third of Americans think their finances are a horror show, according to a new WalletHub survey, and that is not a new development brought on by the pandemic. Roughly the same number of people thought their finances were a horror show in 2019, which indicates that our main problem is a fundamental lack of financial literacy rather than current events,” said Jill Gonzalez, WalletHub analyst.”

“A lot of people have never received good instruction on how to manage their finances, so it’s inevitable that some of the results can be categorized as horrific.“

Earning money, spending money, saving money – is it all that complicated? For many people it is and mostly because of the spending part.

Beyond that some people don’t know how to use bank accounts, how to invest or the true cost of using credit to support ones standard of living.

Spending priorities are difficult for many people, wants and desires get in the way of common sense.

Those who say they can’t afford to save, don’t understand that saving comes first AND what you can’t afford is based on what’s left of pay after saving.

It takes a long-term few, a strategy for life, discipline and commitment to ones goals.

One comment

  1. Besides all these things mentioned here, we been almost a cashless society for a few decades now. I learned to manage my money, as in handling cash, with my newspaper route at age 12. Newspapers routes went away almost two generations ago. Many employers now require direct deposit for your paychecks. People buy things on plastic (credit or debit) and really do not have the concept of what they are really spending until they get hit with a overdraft fee. With the pandemic, people just don’t handle cash anymore. Kids today cannot be taught by their parents because their parents don’t manage their money well. There is not more reaching into your pocket and seeing that you only have $10 left. You kids see you reach for your plastic that buys everything.
    Store credit cards didn’t start until after WWII. VISA and Mastercard didn’t gain acceptance until the mid-1970’s. Until credit cards, you saved your money until you wanted to buy something or you went to the store to pay down you store credit bill weekly for the big ticket items like a refrigerator. I also think that lay-a-way plans at Christmas died with Kmart too.

    When my son went to college in 2005, the first day on campus, credit card companies were basically hand out credit cards to students who had no jobs and no way of paying them back. Kids took them and used them. Think about that. (I believe that practice was stopped after the housing bust but I am not sure.) Money for nothing. What did they learn? How to start off life in debt.

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