Most people are financial dumb

rcox · #1 07-16-2005, 09:54 PM

I was reading an article the other days that something like 90% of americans know very very little about finance and money management.

I'm amazed at how many people just spend money as soon as they get it. A buddy of mine just won a lawsuit for 150K. Instead of investing it for the future, he went out, bother a new sports car, and a new boat for $140K. The guy has 5k in the bank and is 40 years old, ready to have his second kid. It just really ticks me off how dumb some people are when it comes to money.

boeze · #2 07-16-2005, 10:09 PM

Thats indeed not a very smart move

Humble_Student · #3 07-16-2005, 10:42 PM

And our country doesn't care because he is part of whats keeping the economy going; consumer spending. Even if he did have money in the bank, it may not really matter.

I used to work at a company where working 30+ years was the norm. I knew guys 50 years old who had 30++ years and really wanted to retire. But because of a kid in college, or a home with a mortgage, they continued to work. That will likely be your friends legacy; he'll work to hs grave. That might sound mean, but few of those who had retired at this fortune 100 company lived 6 months past retirement.

In the end I think the Government is going to leave workers holding the bag. Bush has said we are an "ownership" society, yet most people don't own their home or even the car they drive. Perhaps they like finanacially dumb people..

I thank God I have seen the light and proably won't have to deal with the bull**** that is comming workers way.

rcox · #4 07-17-2005, 03:32 PM

Yeah, I don't feel I deserve to oww a car unless I have the money to pay for it. I'd rather buy a little economy car that I can afford, rather then borowing money to buy a flashy sportscar.

I_con_you · #5 07-17-2005, 11:25 PM

One reason why most other countries feel threatened by China is that the Chinese Culture is :
-work hard
-save what you can (make sure you can do without work for 5 years!)
-pay cash.

Geez, how do they do that?