The Relation Between Financial Literacy and Financial Wellbeing

1319 Words 6 Pages
Debt: a word that seems to strike fear in the hearts of Americans. Unfortunately, that fear is being faced. Most of the people who lived through the Great Depression have a distrust for banks and credit cards. These people learned from trusting the bank with large amounts of money, and now go to extreme measures to protect their money. In 2008, a similar recession hit the United States and caused many people to lose money. Credit card debt continually increased throughout the 20th and 21st century. However, credit card debt decreased greatly after the recession of 2008 because Americans stopped spending freely, similar to the 1930s. It is commonly believed that people would be wiser spenders after the recession of 2008, but …show more content…
Some contributing factors to the current society's spending habits are the lack of patience, lack of financial knowledge, and the acceptance of debt. In the 1990s, people watched VHS tapes and had to rewind the tape to watch it again. Patience was required to watch a movie. People also had to wait for dial-up to access the internet. Now in the 2000s, waiting is not required to watch a movie or television show, internet speeds are faster, and now with new smart phone technology, little patience is required to receive information. Instead reading books or searching the internet, people can ask their phone a question and receive an answer immediately. Now that patience is no longer required, patience might no longer be existent on this subject. This impatience has leaked into citizens' finances, according to the Journal of Financial Service professionals. It has been estimated that Americans consume nearly one quarter of their resources. Habitual spending is common in most of generation X. Americans have undesirable credit scores and practice poor financial management in order to spend and have what they want now (Dean, 72). Since people can acquire many things immediately that once required waiting, people no longer want to wait for a new car, house, or college education. Credit card debt in 1977 was $804 billion less than it was in 2012. If American citizens continue these spending habits, the entire nation will eventually be in financial

Related Documents