-Reading
-Writing
-How to tie my shoes
-How to drive
-Colors and Numbers
Above is just a small listing of things I was lucky enough to be taught while growing up. Yes taught, like most of the things in our lives they were taught to me. I was not born knowing how to do them. I was lucky enough to grow up in a middle class town and went to one of the best public schools in the area. I was taught about finances and money and I was fortunate enough to purchase a house at the age of 25. But is everyone as lucky as I am? Are those who are not born with the innate ability to figure out finances SAPS?
According to a survey conducted by the credit card VISA:
-Only 5% of adults who were survey learned about the vital life skill of money management in elementary or high school.
So where did everyone else learn it? Well according to the article below - they didn't. There is a growing issue in this country referred to as Financial Illiteracy.
A 2007 study of K-12 teachers by the Networks Financial Institute at Indiana State University revealed:
-According to teachers, financial literacy skills are lacking among young people in the U.S., and many say that their students need to be exposed to the basic financial skills they will need to function in society.
The government has named April as Financial Literacy Month. Obviously this is a growing problem in our society. So because a person was not provided with the tools for learning finances and maybe because of their situation was unable to obtain the tools in another way, does that make them a foolish gullible person (i.E. a SAP) or does it make them a regular American? Does the school system and the government have a a responsibility to society to provide them with these tools? Because they are not taught these things, does it make it right for them to be taken advantage of by banks, mortgage companies and credit card companies?
~Angela
http://www.economist.com/finance/displaystory.cfm?story_id=10958702
Disgusting
16 years ago
I was really surprised to see that you were the person who submitted this article. As I was reading it I thought it came from Ryan or Michael (I apologize if I got the name wrong of the other bandwagon member) I was also lucky enough to buy a home when I was 25. I had sparkling credit, car loans, credit cards, bank account everything was outstanding. Six moths later my house got flooded. Yes I was insured for the amount of my mortgage. If I had gotten a few feet of water in my basement there would not have been any issues. However I received several feet of water... in my second story. Yes folks I was one of those unfortunate individuals on the news in 1999. I had to fight with insurance companies for months to get what I rightfully deserved, I had to take time from work to attend "mandatory" county and FEMA meetings. I had to split my family and dogs between three different homes. I was fired after three weeks of having to deal with this personal situation. I had to rebuild my house with my "spare" income and save receipts to be reimbursed by the insurance company. Shortly thereafter my husband got seriously injured on his job. And lucky for us it happened on the job cause workmans comp was there to fight us for another two years again to get what was rightfully ours. And all along the way those "good guys" the creditors were there to make sure they got their piece and if they didnt they made sure you realized they didnt by slapping the 39.00 late fee, 32% interest rate and the 39.00 over the limit fee for when their fees put you over the limit. I wasnt using my credit cards to live. I had bills prior to this situation and I was paying them just fine until I had to use every resource I had. Life happens. And I truly hope that none of you with your condescending attitudes ever have to go through a situation like I did. Life can turn and take anyone down. All the planning in the world cannot stop the unexpected.
ReplyDeleteI posted this article because in our group chat last night there were people that have the opinion that the mortgage and credit card companies are not at all to blame for people's financial situations and that people are to blame for their own economic downfall therefore making them saps. I completely disagree with them as I do not feel that people are saps. In our chat, statements were made that people should know what they are getting into, that they should know what they can afford, and if they get taken advantage of then it is their own fault. There is an epidemic in this country referred to as predatory lending. This practice occurs when a lender deceptively convinces borrowers to agree to unfair and abusive loan terms or systematically violates these terms in ways that make it difficult for the borrower to defend against. This happens with mortgage companies, credit card companies and loan companies. According to an overview prepared by Fannie Mae, “Although predatory lenders are most likely to target the less educated, racial minorities and the elderly, victims of predatory lending are represented across all demographics”.
ReplyDeleteThe point that I was trying to make is that much of the financial information provided to people is very confusing and that even people who are considered “intelligent” have a difficult time deciphering some of the jargon. This is done on purpose so that lending companies can take advantage of borrowers especially those listed above. If you are not taught about these things or given the tools to learn about these things it doesn’t make you stupid and it certainly does not make you a sap. It makes you an average American.
I am sorry to hear about the tragedy that you experienced. Even though it was in 1999 from what you wrote it still seems like it affects you. Unfortunately, many people experience these types of circumstances and financial lending institutions should have an ethical responsibility to borrowers and consumers to assist them during difficult times. Instead of doing just that, it just seems like they are all out there to make money no matter who suffers.
~Angela
Great stuff here girls..and onto a another related topic. There is much concern out there that those same people are not managing their 401K retirement accounts properly. They used to be managed for us in pension plans....what does this mean for us in the future???
ReplyDeleteI appreciate your clarity. I misread the post to be in agreement with those who blame "the people" instead of the system. I was very hot for the opportunity to speak my peace and jumped at the first opportunity. And even if you were in agreement with them, we are all here to learn from one another. I hope you did not take what I said as a personal attack. As a matter of fact after I was done my say, I went into the franchise discussion and actually answered a question you asked me about 4d ultrasounds.
ReplyDeleteFortunately my family & I are on the up-swing to correcting terrible credit problems that were dealt to us at that time. Anyone could be me. I did everything right up until that point and did the best that I could with the resources I had to get through it. The tragedy that we went through does not affect me as much as the ignorance that people have towards others. As the saying goes... until you walk in anothers shoes.
And BTW: I have been saying that personal finances should be taught in junior high school if not elementary. Do you know how many people out there dont even know how to open a bank account, let alone write a check and then to discuss credit... forget it. Unless your relatives take you through these steps, you dont have a clue... And then you are only as knowledgable as they are. So god help those in the situation of the blind leading the blind.
ReplyDelete