Comments on: Abysmal Survey Results: Americans Don’t Understand Basic Financial Concepts

By: Twitted by TheKirkReport

Twitted by TheKirkReport — Mon, 16 Nov 2009 19:56:42 +0000

[...] This post was Twitted by TheKirkReport [...]

By: Darwin

Darwin — Sat, 14 Nov 2009 04:27:54 +0000

Actually, most of our friends are pretty affluent and they spend about what or more than they make. I don’t know their finances intimately, but many carry credit card debt and make well into the six-figures. I’m not sure there’s a very strong correlation between income and indebtedness.

Depending on which source you check out and how current the data is, you’ll generally find the data indicates ~40-50% of Americans carry credit card debt. I interpret that to mean that they’ve spend more than they make. Otherwise, smart people wouldn’t hold cash in the bank earning .25% and pay 25% on their debt.

While the oft-cited “average” $8,000 per American in credit card debt is misleading when toying with medians, means, families, individuals, etc., even at the low end, if 40% owe anything, that’s a sizable portion of our population that’s not doing something right.

By: Financial Samurai

Financial Samurai — Sat, 14 Nov 2009 04:06:39 +0000

Most people certainly DO NOT spend more than they earn. Only a few are completely irrational in that regard.

Let’s do a survey right here. Who spends more than they earn and has no savings? I’m sure all of you will say your finances are fine.

Trust me folks, there is much more money out there than you can ever imagine. Kinds making 100k at 23 1 year out of school, dock workers working 35 hrs a week making 160k, police and fireighters receiving 100-200k pensions. There is a ton of wealth.

Feel free to check out my post “Fortunes, Fortunes, Everywhere.”. We’re not the only ones making a lot of money. Trust me on this!

By: Kevin

Kevin — Fri, 13 Nov 2009 21:31:40 +0000

The survey is definitely accurate. Most people are in debt over their ears, losing their homes and don’t have a job. How do you figure we all got that way?

Our country’s going down the crapper fast.

By: Darwin

Darwin — Fri, 13 Nov 2009 16:21:52 +0000

I’m not sure you interpretted the survey results correctly. It didn’t ask whether people understand that they “should” spend less than they earn. It asked whether they “do” spend more than they earn – which Americans tend to do very well. Based on what we see in America (and our government’s example) I can’t say I disagree with the results – seems to represent America pretty accurately from what I can discern.

By: Financial Samurai

Financial Samurai — Fri, 13 Nov 2009 15:55:55 +0000

Don’t believe in survey’s mate. They are just created to make the writer and all of us to feel better.

I bet EVERY SINGLE person who reads this post understands the financial basics such as spend less than you earn.

And if that’s the case, how is it that most do not? The answer is, don’t believe survey’s.

By: Mark Wolfinger

Mark Wolfinger — Fri, 13 Nov 2009 14:11:38 +0000

Surprised, no.
But disappointed.

Just look at the TV shows that are the most popular. It says a great deal about the intelligence of the average citizen.

School is the place to learn and many kids don’t care. Couple that with the fact that the curriculum gives them no chance to get a feel for money matters. If they could only understand one simple concept: compount interest, their after-graduation lives would change.

And once out in the real world, it must feel good to just spend all they have and not think abut anything else. How did we allow this to happen? Even worse, why do we allow it to continue?