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So many of these finance questions revolve around bad credit…how do I get out of debt, I have bad credit and I need help…just a couple of examples. Who is to blame that we are so bad as a country in terms of saving? It’s quite pitiful.

9 Thoughts on Why are people so bad at managing their finances?
  1. Reply
    sandman
    February 14, 2013 at 4:25 am

    But they said on TV , I deserved all this stuff…

  2. Reply
    Jack S
    February 14, 2013 at 5:21 am

    Number one reason: Parents never taught them the value of money or credit.

    Number two reason: Just cannot say NO to their wants and desires for any sort of long term benefit.

    Number three reason: TOO MANY wants and desires.

    Number four reason: Lack of self-discipline & restraint.

  3. Reply
    kukukachooinyourface
    February 14, 2013 at 5:59 am

    The school curriculums are geared towards churning out millions of worker bees every year, its in no ones interest to churn out millionaires……schools dont need to teach financial smarts, because if everyone turned out to be a millionaire, after leaving school, the country would not make half as much in taxes as they do now. All those clued up millionaires would all be using tax dodges and corporate lawyers or offshore tax havens to pay little or no taxes just like they do now. Its the nations tax money that keeps the country chugging along each day. Check ouit the Montana freemen from a few years ago, they were definitely onto something when they started making their own money, thats why they were raided and havent been seen since!!!
    http://freedomdomain.com/freemen.html

    http://freedomdomain.com/sovcit.htm

  4. Reply
    cathylwgp
    February 14, 2013 at 6:58 am

    It is a taught behavior, or a behavior that is not taught. Instant gratification can be a real problem when it comes to borrowing. When I first got married the banks and finance companies made it too easy for us to get loans, even though we were paying really high interest.

  5. Reply
    Em C
    February 14, 2013 at 7:13 am

    Because people pay for things they don’t have money for. Schools don’t teach them and if your parents aren’t responsible you aren’t going to learn it from them. Companies started credit cards, and financing programs to benefit them, not us. People now days think they are entitled to have, entitled to get no matter what the cost is. Maybe to keep up with the jones. I think the people who save money for thier needs and wants are far better off than the jones whos credit card companies own thier cars, boats and jewerly just so they “look” like they’ve got it all.

  6. Reply
    XopherMV
    February 14, 2013 at 7:32 am

    Certainly, a good share of the blame lies with consumers who appear to have absolutely no willpower or common sense. If you spend more than you earn, then of course your debt will never stop piling up.

    But, there are also contributing factors.

    For one, marketing works! There is a reason that companies spend billions of dollars each year on advertising and marketing. There is a reason they’ve done so for decades upon decades since before any of us can remember. The fact is that companies KNOW that buying advertising will make you spend MORE money purchasing their products. They have become quite good at convincing the consumer to give up their hard-earned money, whether it is in the consumer’s best interest or not.

    Also, we are never taught financial basics in school. We may get this information from our parents, but we may not. And even then, our parents may have themselves been taught bad lessons. So, even if parents pass down their knowledge, it isn’t necessarily good.

    What we need is a required class in high school called “Business” that teaches money management, basic economics, basic accounting, basic finance, and office skills. With everyone in our society eventually working for a business of some kind once they graduate, this is a topic that definitely needs teaching.

    In conclusion, self control, lack of financial education, and the fact that marketing works are the reasons why Americans can’t save money.

  7. Reply
    npwinder
    February 14, 2013 at 7:36 am

    People have these small luxuries while children. They think they have to have them to live when they grow up. They forgot that often times our parents didn’t have those things when they were growing up and if they did they probably didnt have them when they first moved out.

    People love to be entertained. They don’t care the cost. They have to be in the popular crowd. they don’t realize that as you get older what you have means less.

  8. Reply
    gazelleintense.com
    February 14, 2013 at 7:40 am

    great question. you are not alone… most of us have never been taught the right way to do money… personal debt in the USA is getting out of hand.

    the link below will help

  9. Reply
    whyworry
    February 14, 2013 at 7:46 am

    1) They don’t know the true difference between wants and needs. 2) They must have instant gratification.

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