I worked for minimum wage for nearly three decades living in DC as an immigrant. My SS statement shows that I have made ca $400k in total. Seems about right.
I have mad personal finance skills though. I counted my pennies even as a kid. We didn't even have banks in the old country. Imagine coming here and finding out that money is more than just paying for things. It's a powerful tool.
In 1997, I lived in section 8 in Columbia Heights. No need to read 'Evicted'. I have some idea what keeps poor people poor. Even the one guy with BA wasn't going to make it.
I had everything in me to get out of poverty within months, and they had none of it needed to get out. I had to leave them behind or I was going nowhere but down, specially mentally.
Nowadays, as I don't work much, I ponder, why the poor stay poor. I got about 60 reasons down and then it starts to overlap too much.
I don't agree with everything in Nickel and Dimed. RIP, BE. She lucky I didn't go with her. I would have ruined it all. I can't even tell you how many times I wanted to yell at her through the book. After all, I had come out of being broke 3 times on low wage and 4th time from cc debt of $45k.
Who the heck gives someone making minimum wage $50k in credit. Banks do. My ex put me in debt. Courts made him pay it back.
The other 3 times I moved between continents without money.
I am a single immigrant mother. I can tell you a sad immigrant story, but my kid would start laughing. His mom was never poor, she was broke. Thanks Dave C. for that. So true.

Yes, this board is full of people born on third base who thought they hit a triple. I’m from a normal middle class background. Single mom, first in my family to graduate from college, took out student loans, paid them back. My kid also has student loans and will pay his back. Even if we cut every corner, I still don’t have enough to pay for everything. I always pay off my credit card debt but until I stop paying for college, it is super tight every month.

Some of the things people post on this forum make it clear they’re really financially illiterate. There are people here who don’t understand interest rates

I keep trying to show my kids the power of compounding interest. Basically I’m telling them showing them Vanguard index funds and how they grow. I wish I’d bought VT each month starting at 18…would be a millionaire many times over already.

I see a ton of it on Reddit.

I read povertyfinance. I don't know why I started- I think it was around the time the Windfall Elimination Provision was repealed, and that took me to some Social Security sites, which made some povertyfinance subreddits pop up, I think.

I keep reading to give these kids - and they are all under 30 - whatever advice I can. So many of them have no one to advise them. Their parents are either crap with money, or crap in general and have tossed the kids out at 18, or just don't exist at all (kids aged out of foster care). These young people are starting off with such bad conditions. Spending 60% of their income on rent and 30% on a car loan. They get into difficulty paying their rent and start down the road of over using Credit Card debt, afterpay, Klarna, and something I never heard of called Daily Pay? (Some kind of advance against your next paycheck I think).

To the PP asking. if you know anyone who is in debt beyond their mortgage - get your of your DCUM bubble! MOST of the households in the US, especially the younger generations, have significant student loan, credit card, medical and other non-mortgage debt.

Who do you know who’s in substantial debt beyond their mortgage? I get that people don’t talk about it but are you?

We are a consumer society. We consume a lot in this country.

Many of us on this forum who have a lot savings and investments are benefiting from other people doing the spending. Just increase the savings rate by 10% nationally and you will massive changes in the economy

The American economy is built on debt and predation. Once you are stuck in that cycle of debt, it's very hard to get out because structurally you are meant to be kept in that cycle because a lot profit from that.

Anonymous wrote:I think they need to limit loans on new cars. No one needs a 50k car. A car loan for a 15k used car- yes that’s a need.

Brilliant idea but that would not help business, so it would not have much support, sadly.

Americans seem to be back to indentured servitude - everything is paid for over time with credit on onerous terms, lent to people who should learn not to spend so much on cars and other consumer items.

Anonymous wrote:I mean, yes. I agree.

But those shows only pick people with the most egregious stories. A normal person with normal finances isn’t exciting enough for airtime.

Exactly. How do you think these shows work, OP? They're not selecting Average Joe. They're taking Dumb Joe.

Anonymous wrote:I think most people learn from their parents. My parents were always frugal and good with money. They passed this down. I have done the same.

They were also likely gainfully employed and emphasized work. Having money makes it easy to not be in debt.

I think they need to limit loans on new cars. No one needs a 50k car. A car loan for a 15k used car- yes that’s a need.

I think most people learn from their parents. My parents were always frugal and good with money. They passed this down. I have done the same.

I mean, yes. I agree.

But those shows only pick people with the most egregious stories. A normal person with normal finances isn’t exciting enough for airtime.

It’s at a point where I think it’s predatory how much credit most people are getting. Someone who makes under 50k should not have 5k or even 10k credit limit. They shouldn’t be able to finance a 50k car.

Car loans are really out of control.

I was watching a show and people were calling in regarding their finances.

This one lady in her 60s wants to buy a home, rolled over negative equity from an old car loan into a new one and she doesn't know how much she owes ...wow just wow