Reply to Wow the lack of financial education in this country is staggering

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[quote=Anonymous]don’t know, OP. I agree with you that financial education is totally lacking and too many people get accustomed to the “monthly payment” mindset instead of the “how much is this actually costing me” mindset. That goes for people of all income levels.

At the same time, many LMC and poor families simply cannot make ends meet without putting things on credit or making spending choices that are suboptimal. Frugality has its limits. Most people aren’t willing to be “frugal” when it comes to therapies for their special needs kids, for example. You pay because it’s an investment in their life and hope you can find the money for other necessities before they come due. Eating cheap and buying second hand clothes becomes a way to keep the lights on but never to actually get ahead.

Same if the fridge goes or the daily commuter car needs a new transmission. You put it on credit because you need it now and try to ignore the fact it is going to ultimately cost you four times what you paid - you just do your best to keep up with the minimums. Maybe juggle some low/no interest offers if you have good credit.

Forget things like buying in bulk. That requires having slightly more budget than the bare minimum to meet needs. Not willing to risk scurvy so I can buy that mega pack of meat that’s such a deal.

Living that way is absolutely stressful and a total grind, and it so easy to fall for the constant temptation to “treat yourself” with some wasteful small luxury purchase you really can’t afford. I grew up LMC and it took several years of solidly UMC income, paying off my student loan debt, and acquiring a million in assets by living well below my means before I finally felt something like comfort with my financial situation. And ironically, I have never felt less pressure to “treat myself”. If anything, I have to remind myself that I’m allowed to use my money to make my life easier.

When the easy credit stops flowing in this country we are going to have a violent revolution because it is going to expose just how bad things have gotten for so many people. [/quote]

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