Why do Americans have so much debt?

Question

Growing up, my parents never bought anything they couldn't afford. Now, we're getting mixed signals from parents and peers. Buy the house now, the car, go take that cruise, etc. there are more people today that have either consolidated their debts or gone bankrupt. What do you think is the real cause?

Answer 1

We live in a superficial materialistic society that is seeking immediate gratification for everything, its unfortunate but its just the way it is. I am old school so i know exactly what you mean though.

Answer 2

Americans want instant gratification and are unwilling to wait and save. I saw an ad for a Target Credit card that said 'The Power to Get". People feel empowered when they are able to buy what they want when they want. They feel inadequate if they have to wait.

I also think a secondary issue is the general lack of good personal finance education in the schools. People don't know what to do with money once they get it. People generally learn about money management from their parents. Many parents mismanage money.

I also think that people have a hard time distinquishing between needs and wants. They mistake wants for needs these days...like Xboxs or Lexus' cars.

Answer 3

Many families I knew growing up NEVER talked about finances with their children. So when it came time for the kids to get there own credit, they had NO idea how to manage it responsibly or even how to save money.

Answer 4

My parents always told me that when you get a paycheck put at least $25 away in a bank account(or more) and let it grow. Some people dont tell their kids to do that. And when they do they blow it all on stuff.

Answer 5

most younger generation have not experience war or any kind of poverty.

another thing is it is too easy to get a credit card, even a toddler can get one, this is no joke.

and all those advance check and furniture rental place is not helping.

Answer 6

Read "Rich Dad Poor Dad."