Another Article on American's Debt

[ExFlyBoy5]

This article rehashes the findings that a lot of Americans couldn't come up with $400 if they had to. Yes, it's as bad as a Marketwatch click bait article, but there isn't a lot of financial news on a Sunday.

Spoiler alert....the reason people can't come up with money? Debt. Big, BIG surprise...right?

https://www.cnbc.com/2019/07/20/her...ans-cant-handle-a-400-unexpected-expense.html

Some 40% of Americans would struggle to come up with $400 for an unexpected expense. Just how are so many Americans so short on cash? Anqi Chen at the Center for Retirement Research at Boston College recently tried to answer that question. The researchers landed on a plausible cause for why so many Americans are living paycheck to paycheck: debt.

 

[Teacher Terry]

It’s really sad. Some people of course make bad choices but some are probably just victims of increasing COL. Rents and housing prices are skyrocketing here and really hurting the lower wage earners.

 

[Dean56]

True, but I bet they don't think twice about going out for a nice dinner or a sporting event. Some people will never learn how to handle their finances.

 

[Xelah]

Yet the Survey of Consumer Finances, which asks respondents for their bank account balance, found the share of households who have less than $400 in their checking or savings accounts was closer to 20%.

Having spent the last 10 years of my career working for Habitat for Humanity. I can tell you many of our families had no saving or checking accounts. That way creditors could not go after any money in those accounts. Just a way of life, right or wrong.

 

[Dtail]

At least LAYM.
Live At Your Means.

 

[aja8888]

Speaking of spending (and CC debt).......All the restaurants around here are full, seven days a week, if they are open on Sunday. At some of the higher end seafood places, it's nothing to have a 1.5 hour wait and they don't take reservations....

Economy is good!!

 

[razztazz]

Yet the Survey of Consumer Finances, which asks respondents for their bank account balance, found the share of households who have less than $400 in their checking or savings accounts was closer to 20%.

Having spent the last 10 years of my career working for Habitat for Humanity. I can tell you many of our families had no saving or checking accounts. That way creditors could not go after any money in those accounts. Just a way of life, right or wrong.

Don't want to drag this off center but I know a person like that. She runs a business. All cash. NO bank accounts. I cannot be so nosey as to ask her what she does with it. Do you know how those people with no bank accounts manage and what they actually do with the money?

 

[imoldernu]

$400?

Each taxpayer's share of the U.S. Debt is $183,000.

 

[Xelah]

Don't want to drag this off center but I know a person like that. She runs a business. All cash. NO bank accounts. I cannot be so nosey as to ask her what she does with it. Do you know how those people with no bank accounts manage and what they actually do with the money?

Everything is done in cash for the most part. Don't get me wrong most live on little or nothing. I would never be able to make on the small amount of money most have coming in. If you would like a good read check out this book "A Framework for Understanding Poverty" by Ruby K. Payne.

 

[NYEXPAT]

$400?

Each taxpayer's share of the U.S. Debt is $183,000.

We should open up the borders till we get that down to a buck fity!

 

[ExFlyBoy5]

Speaking of spending (and CC debt).......All the restaurants around here are full, seven days a week, if they are open on Sunday. At some of the higher end seafood places, it's nothing to have a 1.5 hour wait and they don't take reservations....

Economy is good!!

I don't know, I think that might be a population density thing. When we lived in San Antonio (2006-2012, in the middle of the 'great recession') you couldn't go out to eat ANYWHERE without a wait. Unless it was 2:30 in the afternoon on a Tuesday. I have never lived anywhere else that we had to wait so freaking long for a table.

 

[razztazz]

Everything is done in cash for the most part. Don't get me wrong most live on little or nothing. I would never be able to make on the small amount of money most have coming in. If you would like a good read check out this book "A Framework for Understanding Poverty" by Ruby K. Payne.

Thanks. Wasn't sure if their "no account" technique was a survival mechanism or a scam "Force Multiplier". Sort of the poor man's version of the rich guy's Cayman Island bank account or shell corporation.

I think I already get the gist of poverty (Not to brag, ha ha)

 

[razztazz]

What would the economy look like if everyone " knew the value of a dollar" and was financially savvy and fiscally 100% responsible? If everybody saved their money to be spent on medical care or at least insurance, at least 20% down on a house, socked it away to go back to school to upgrade their skills and put their children through college, never ate out or went to a movie or bought an "Apple Crap Device of the Month" or whatever they're selling nowadays, or anything unless and until they had all that responsible stuff paid for first? I mean I want somebody Top Level, Kudlow, Krugmann, et al. Those guys. Do the math.

 

[MarieIG]

I found that "or only have a high school degree" very condescending.

 

[travelover]

All I can say is, Wow, am I special!".

 

[CardsFan]

I found that "or only have a high school degree" very condescending.

Recently had a conversation with a very good friend. We do not agree, politically, but agree on a lot of the issues. He was a tradesman, I was an engineer (both retired).

There is a vast shortage of trades people, painters, mechanics, welders, et. al. These jobs pay well, and, for now, have pension benefits (if union).

I am at a loss as to why people don't think these are good jobs?

 

[travelover]

...........I am at a loss as to why people don't think these are good jobs?

I've worked those jobs. They are very hard on your body. It is one thing when you are 25, another when you are 50+

 

[CardsFan]

I've worked those jobs. They are very hard on your body. It is one thing when you are 25, another when you are 50+

Fully agree. I have worked them as well, tho only for a short period of time. But they ARE well paying jobs, and if someone is not inclined to go to college, there are good careers available.

FWIW, one of my best friends (not the one previously referenced) worked as a tradesman (non-union) for all of his career. Started as a jack of all trades, worked into a lead position as a mechanic. Invested in his 401k. Company got sold, he left with about $1.5 million. Just a mechanic. No stock options. No "enhanced" benefits. Just worked and invested.

 

[Badger]

Speaking of spending (and CC debt).......All the restaurants around here are full, seven days a week, if they are open on Sunday. At some of the higher end seafood places, it's nothing to have a 1.5 hour wait and they don't take reservations....

Economy is good!!

Even Mickey Ds takes CC. I guess most other fast food "restaurants" do the same or will in the near future if they don't want to lose market share.


Cheers!

 

[NW-Bound]

It’s really sad. Some people of course make bad choices but some are probably just victims of increasing COL. Rents and housing prices are skyrocketing here and really hurting the lower wage earners.

I am sure there are a lot of people with low income who do not have any cash after paying bills. However, 40% is a lot of people.

True, but I bet they don't think twice about going out for a nice dinner or a sporting event. Some people will never learn how to handle their finances.

Speaking of spending (and CC debt).......All the restaurants around here are full, seven days a week, if they are open on Sunday. At some of the higher end seafood places, it's nothing to have a 1.5 hour wait and they don't take reservations....

Economy is good!!

If the statistics can be trusted, that leaves 60% of Americans with more than $400 cash.

Out of that 60%, let's say 2/3 or 40% of all people have $500 cash or more.

These are the people who go blow $100 for a dinner, and they still have $400 left. All right!

 

[Teacher Terry]

My ex had a master’s degree in math but preferred to be a tool and die maker. Made good money and lots of overtime. That job is not very hard on your body.

 

[Samething]

Fully agree. I have worked them as well, tho only for a short period of time. But they ARE well paying jobs, and if someone is not inclined to go to college, there are good careers available.



FWIW, one of my best friends (not the one previously referenced) worked as a tradesman (non-union) for all of his career. Started as a jack of all trades, worked into a lead position as a mechanic. Invested in his 401k. Company got sold, he left with about $1.5 million. Just a mechanic. No stock options. No "enhanced" benefits. Just worked and invested.

I worked as a tradesman for 34 years and retired May 31st. Even as a supervisor I had to work the trade as well as overseeing other tradespeople to meet the ever increasing productivity goals. Hard work and at 58 I was/am completely burned out physically and mentally.
We were non union but my mega had a ESOP and a 401k. The ESOP was just over 1M and I always put in the max allowable in the 401k and got the shi**y match from mega. I also have lived a LBYM lifestyle so I managed to save a good pile after tax. So the first mil was the nice ESOP and the next mil was me. I was fortunate the company stock did so well but I also worked my a** off.
I had a period in my life when I was first out on my own that I could barely afford to eat and keep a roof over my head. That was a great motivator. It can be done even if you are “only” a high school graduate.

 

[rk911]

Yet the Survey of Consumer Finances, which asks respondents for their bank account balance, found the share of households who have less than $400 in their checking or savings accounts was closer to 20%.

Having spent the last 10 years of my career working for Habitat for Humanity. I can tell you many of our families had no saving or checking accounts. That way creditors could not go after any money in those accounts. Just a way of life, right or wrong.

had a guy at work like that...no bank account. when we switched everyone over to direct deposit he refused and demanded a paper check. said he cashed them at a currency exchange, paid bills with postal money order and cash for everything else. this was a guy with a good paying job, a wife and kids. he was told to get a bank account if he wanted to get paid/keep his job. he did but he wasn't happy. sadly, he passed away a few years back.

 

[rk911]

Recently had a conversation with a very good friend. We do not agree, politically, but agree on a lot of the issues. He was a tradesman, I was an engineer (both retired).

There is a vast shortage of trades people, painters, mechanics, welders, et. al. These jobs pay well, and, for now, have pension benefits (if union).

I am at a loss as to why people don't think these are good jobs?

becuz we've been brainwashed into believing that in order to succeed every child must go to college.

 

[Music Lover]

Recently had a conversation with a very good friend. We do not agree, politically, but agree on a lot of the issues. He was a tradesman, I was an engineer (both retired).

There is a vast shortage of trades people, painters, mechanics, welders, et. al. These jobs pay well, and, for now, have pension benefits (if union).

I am at a loss as to why people don't think these are good jobs?

There's been a decades long campaign telling everyone that a degree was the best way to get ahead. Few people questioned it.

Not only does the right trade pay very well, but working in trades also puts you in contact with other trades which allows you to build up a valuable network of contacts.