Community Chat

[GingerPeach]

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@Mominohio wrote:

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@GingerPeach wrote:

I found this excerpt from the article very telling.  How many of us are "financially illiterate" - to any degree?  Apparently 65 percent of Americans aged 25 to 65 are in that grouping.

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"It is ironic that as financial products have become increasingly sophisticated, theoretically giving individuals more options to smooth out the bumps in their lives, something like the opposite seems to have happened, at least for many. Indeed, Annamaria Lusardi and her colleagues found that, in general, the more sophisticated a country’s credit and financial markets, the worse the problem of financial insecurity for its citizens. Why? Lusardi argues that as the financial world has grown more complex, our knowledge of finances has not kept pace. Basically, a good many Americans are “financially illiterate,” and this illiteracy correlates highly with financial distress. A 2011 study she and a colleague conducted measuring knowledge of fundamental financial principles (compound interest, risk diversification, and the effects of inflation) found that 65 percent of Americans ages 25 to 65 were financial illiterates."

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@GingerPeach This is very interesting, and a very valid point. One can't maximize anything they don't understand fully.

I think the author (at least in this portion of writing) misses the fact that along with the sophistication of the financial products has come easier access to credit. Be it loans, credit cards etc. more and more Americans are using and abusing credit, where several generations ago, it was difficult to obtain, depended upon less (especially for daily life, and reserved for the big things like homes or a car), and considered an obligation to pay back and use sparingly.

Today, people charge or finance just about anything from a vacation to the weeks groceries to the utilities. It works for those that can budget, pay that bill each month without interest, and continue to invest and save while swiping that card. Sadly, many cannot, hence their constant state of 'broke'.

 . . .

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I agree about the easier access to credit, @Mominohio, being an issue for those who do not understand how to use it.

That is part of the "financial illiteracy" that many are suffering from since sometimes it is made to seem so "easy."

[CelticCrafter]

I don't click links, but how old are these people?

[151949]

I think the generation that grew up in the depression and then fought in WW11 were determined that their children and grandchildren would never know the want they had gone through. For my parents that was assured to us by them doing everything within their power to see that we had an education we could always fall back on, then , of course,  us boomers did the same for our kids.With the inventions of the technology age the younger generations just can't imagine life without their technology. 

Sadly, in this age of communication people see on TV that they MUST have the latest styles or phones or home remodeling and are made to feel it would be an absolute sin to live in a house with an outdated (though still perfectly functional) kitchen or not have the current trend in anything from homes to cars to electronics. 

Here in Florida we see less of the trendy stuff than when we go up north because us retirees  don't or can't buy into it as much. Once we get up to camp where there are more diverse ages it is much more apparent to us - everyone has the latest i phone or Samsung instead of a tracfone. Here in Florida tracfones are much more the norm - what does a retiree need an expensive i phone for? Here in Florida we see almost everyone dressed in capris and t shirts or shorts and tees, sandals. When we get up north it is much more whatever the latest trends are. We rarely see anyone down here in bright color sport shoes but up north that is all we see.

[Gooday]

I remember a time when I lived paycheck to paycheck.  It was my choice not to go to college.  My parents both worked and gave me and my brother a very good life..not wealthy but not poor by any means.  Speaking of means, they lived within their means.  No credit cards, cash only.  I was born in 1953 and my brother in 1951.  My parents were 25 and 23 when I was born. 

I thought I was SOOOOO smart and moved out when I was 22.  I floated from job to job.  I didn't have 2 nickels to rub together but, boy did I have a good time.

If it were not for my parents bailing me out by paying my car insurance and the occasional rent payment, I'd have been out in the street.  However, for them, it was better than having me return home.

It was not until I married a man who had made good investments and was a good saver with a good job did I know financial stability and security.

I truly believe this survey/report. I lived it and for those who believe they are better off now than years ago, God Bless...

[esmeraldagooch]

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@QueenDanceALot wrote:

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@esmeraldagooch wrote:

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@kdgn wrote:

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@Trinity11 wrote:

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@esmeraldagooch wrote:

Not to mention those who are not even citizens who are on WIC and welfare getting money for things they haven't even paid into.

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Have we as a nation become so heartless that we want to deny a child a meal? 

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There are many citizens of this country who are on WIC and welfare who have not paid into the system. We would deny them also? WIC and any welfare would be for children who are born here which makes THEM the citizens. The last I heard there were child labor laws preventing them from working and therefore contributing to "the system". 

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This was meant as a hand up not a way of life.  Right now children unaccompanied who cross the boarder get $17,613.  That is more than the average Senior who worked and gets SSI.

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Does border patrol hand them a check?

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No, DHS does.

The number of unaccompanied illegal immigrant minors the O---a administration is placing in communities across the U.S. is on pace to be twice as high as last year and rival the previously unprecedented levels reached in FY 2014.

The high placement numbers are a result of the ongoing surge of unaccompanied minors — largely from Central America — illegally entering the U.S. at the southwest border. The O---a administration, citing a 2008 anti-trafficking law, has been granting unaccompanied illegal immigrant minors from noncontiguous counties special protections, including reuniting them with relatives living in the U.S.

Once apprehended illegally crossing into the U.S., Border Patrol transfers these Central American unaccompanied minors to the Department of Health and Human Services’ Office of Refugee Resettlement (ORR). ORR then places the minors in the care of a family member or sponsor in the U.S.

In the first six months of this fiscal year (October 2015 – March 2016), ORR placed 25,975 unaccompanied minors with sponsors in states across the country, according to datacompiled by ORR.

The total is nearly as high as the number of unaccompanied minors ORR placed in the U.S. over all 12 months of FY 2015, or 27,520. During the record-setting year in FY 2014 ORR placed 53,515 unaccompanied children with sponsors across the U.S.

According a recent Associated Press investigation, the administration places the vast majority of these unaccompanied children with relatives who are often illegal immigrants themselves.

If the last six months of FY 2016 are similar to the first six months, ORR’s total unaccompanied minor placements could reach nearly 52,000.

So far, most of the unaccompanied minors this fiscal year have been placed in California (3,608), Texas (3,106), Florida (2,786), New York (2,306), Virginia (1,886), Maryland (1,849), and New Jersey (1,265).

The first six months of FY 2016 have already seen over 27,754 unaccompanied minors apprehended illegally crossing into the U.S. According to Border Patrol figures, the level to date is 78 percent higher than the 15,616 unaccompanied minors apprehended over the same timeframe in FY 2015 and about on par with the 28,579 apprehended in FY 2014.

According to the Senate Subcommittee on Immigration and the National Interest, just 3.6 percent of the unaccompanied illegal immigrant minors apprehended over the past two-and-a-half years have been returned to their countries of origin.

[esmeraldagooch]

So Kittylouwhotoo, If little children can cross the boarder and come into the country, what exatly is stopping ISIS from doing the same?

[shoekitty]

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@151949 wrote:

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@gardensla wrote:

Wage snagnation is killing the middle class.

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I believe it has less to do with wages and more to do with living within your means by actually telling yourself NO to unnecessary purchases. I am always astounded at what some people of lower income will buy themselves - clothes, cars, trips etc on credit. I have a friend who I know for a fact lives on $1200 SSD a month but thinks nothing of charging a trip on her credit card. She is planning to go to California this summer for a family reunion. She does not have one cent in the bank for an emergency.

Shoekitty said

I know what you are trying to say, but I think it is okay for a person to go on a trip and pay in installments once in a while.  There is NO way a person would be able to save that money out of disability. When you live on that amount ,everyday can be an emergency!   But I do hear what you are saying.

This is what I think.  Having helped and worked with the disadvantaged, low income, no income, and just plain no- income- to- go- around people, I have learned a lot. It is hard not to judge what others spend when they are on assistance.  But there will always  be those who take advantage of everything they can, they are often empty people.  They feel everyone owes them a living, they feel entitled, sometimes it is all you can do to keep your mouth shut and just mentally smack them!. Seriously.  They are miserable human beings, and I wouldn't want their  life for ONE day. They look around at what others have, and want it.  They believe they deserve the same without any effort.And boy, are they vocal.  Always screaming injustice.

But so many more have genuine illness, disability, and life circumstance that requires them to get a hand.  Most hate it.  They dream of being off the dole, working, but it isn't in the cards. I have a list of inspiring stories that would make your heart sing.

I have a mentally ill brother who recieves disability.  It pays his boarding care with 102 dollars left over. We have to chip in just to clothe him.  When he gets a few dollars for himself, he dreams of a soda, candy bar, and things he really shouldn't have.  But when people have so little sometimes a family reunion or a treat is a dream they live on all year.

When one is on a low low fixed income it is hard.  Usually the amount never changes, same amount every month.  Never any raises, overtime amounts, promotions that most of look forward to.  Finacially life is the same every month.  I have know people who have lost everything due to some circumstances that were horrible.  They have kids, they struggle to feed with food stamps and the little they have from from work after they pay rent.  They are always behind. Everyweek it is pay the electric or fruit and veggies for the kids.  Electric wins.  Once in a while a birthday cake a child wants more than anything bought with food stamps is a present in itself.  The family may struggle all month, but the cake brings joy.  Yes, a person could make one and they do.  But anyone who has had a young child dreaming of a charater cake knows what I am speaking of.  Some choices don't always seem wise, but usually there is a reason.  JMHO

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[Trinity11]

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@MomCat wrote:
First of all, it's no secret, and secondly - anyone who falls into this category SHOULD be ashamed. It's shocking reading all the excuses posted here. It's called lack of personal responsibility. It's been going on forever, and the numbers have grown throughout time. I know many people like myself who could most certainly come up with $400 in an instant. It's not about wealth. It's about discipline. Responsible individuals think like this in everything they do. Group thinking will get you in trouble every time!! So simple, but our school system has set out to eliminate individual thinking so this irresponsible trend will continue to grow. Think that is harsh? I just saw a teacher who was on the picket line being interviewed on tv and she said - teachers need a raise because it's the community that raises the kids. What? I won't tell you what I yelled at the tv.......

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Lack of personal responsibility? What about the people with catastrophic illnesses with huge co-pays? Bills coming in left and right. I believe until we walk in someone else's shoes I have no right to judge anyone else's finances or circumstances. One illness can put a responsible person's life into turmoil.

[Mominohio]

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@Trinity11 wrote:

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@esmeraldagooch wrote:

Not to mention those who are not even citizens who are on WIC and welfare getting money for things they haven't even paid into.

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Have we as a nation become so heartless that we want to deny a child a meal? 

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Have we become so PC that we don't require their parents to step up or step out?

[KarenQVC]

People should budget well below their income.  That usually works out.  Of course, terrible things happen to good people and we should lend them a hand.