Americans Problem With Money
As my son gets ready for the last day of school and is getting ready to go on vacation, there are a few things I want to share.
We live in the richest country in the world, or at least that is what they tell us. America is going through a political war between the two major parties, and it appears to me that a lot of work is not being done that should be.
I have mentioned that student loans are over $1.5 trillion but what also needs to be mentioned is that many people are living day to day worried about where the money will come from to pay for it.
A majority of the population is not saving for retirement, medical costs are going through the roof and a large percentage of people have less than $1,000 saved for a rainy day. 25% of Americans say they worry about money ‘all the time’, and I don’t see it getting better soon.
If you are in this category what you have to do is tighten your belt, cut down on all unnecessary expenses and come up with a plan on how you will get out of the mess you are in.
The average American has over $5.000 in credit card debt, less than $1,000 in savings, lives month to month and is still adding more credit card debt. This has to stop otherwise people will be in more financial trouble than they currently are, not to mention the problems they will face when it comes time to retire.
I talk about this because my young son is getting ready for high school with high hopes of going to college. He has no clue where the money will come from and what the consequences will be for him if he doesn’t go to college.
As a parent it is my responsibility to give him some financial education so he can establish good financial skills and habits. He needs to learn the rules like not getting into debt, and how to live a stress free life by not spending more than he has. That is why he is taking a financial course before he starts high school and will complete it before he goes on vacation.
I want him to think about what he is learning, ask questions if he has any and think about his future in financial terms. I believe that it is a parent’s responsibility to educate their children, not only by having them go to school, but also teaching them financial habits at an early age so they do not get into a bind later on.
I mentioned in my last post I signed him up for an Udemy course Money, Personal Financial Literacy for High School Students, and we have already completed it. I did not do this to make his life difficult, or to harass him. I did it because I love him and want him to get a jump on life I didn’t get when I was his age.
When he starts high school he will have English, Math, Science, social experiences, be a member of the band and might take part in some other school activities. When he goes to college he will continue taking part in these same things, but once he graduates and gets a degree, he will never take another math or English course; he might not play any sports nor play in a band.
What he will have is his life and career ahead of him and that is where finances will be an important factor. The more he learns early on, the better off he will be. Starting life after college with a student loan is not my idea of a good time.
I’ve have traveled to over 30 countries in my lifetime, and I have come to realize that Americans are spoiled. No, not everybody, but a large percentage of the population. As Americans we take our lifestyle for granted, and a majority of the population has no clue how good we have it and how the rest of the world lives.
In many countries the average income is less than $1,000 a month. They don’t use credit cards, don’t drive fancy cars and don’t wear expensive sneakers, yet many of those people are happier than Americans.
A large percentage of Americans spend more than what they earn, eat more than what they should and are obese, unhealthy and broke. If you don’t believe me look around where you live, or talk with your friends and ask for their opinion. Many people are living month to month with no plans for their future.
Americans are used to instant gratification. On television we see thousands of commercials every month, and we have too many choices for things to buy. There are sales for every occasion and Black Friday is now a major shopping day.
You might not know this but America and New Zealand are the only countries that allow direct to the consumer commercials and advertising for prescription drugs. Add to that the fact that many drugs that are made in the USA are a great deal cheaper in other countries. I think it should be just the other way around, but who am I to say this.
I will end here but I just wanted to share some of the things wrong in our country. These are just some of the things I don’t want my son to have to deal with.
There are many Americans who have made bad financial decisions, and yet they are not doing anything about it. I for one am against that and do not wish that for my son.
Everyone, including you can get your financial house in order, and sure it will take some planning, hard work and discipline, but it will be worth it. I will do my best to help my son get his life on track at a young age so he doesn’t end up going in the wrong direction.
Do you agree with me on this or not? Let me know where you stand on some of the issues that I mentioned.
Until next time, be safe out there and have a great day!
Goulash