It’s astonishing how poorly Americans are doing economically these days compared to where they were in the past. People are spending more, saving less, and generally accumulating more debt than every before. These habits are going to be America’s downfall if they’re not corrected as soon as possible. Americans have become accustomed to a lifestyle made possible by living beyond their means, but it’s still possible to teach the next generation financial truths that can save them from the same financial ruin that has hit this generation. This financial advice should hopefully open the eyes of some Americans, but in all likelihood, it’s only preaching to the choir.
Debt is America’s Biggest Problem
There is no doubt in this Financial Doctor’s eyes that debt is the biggest problem weighing down on both the American government and the citizens of the United States. There are some interesting statistics about how debt in America is getting, and has gotten, way out of hand. About 41 percent of Americans between the ages of 18 and 21 actually do not consistently pay their bills monthly. These young adults are just setting this country up for another 60 years of debt and struggle. They need to learn to stop spending beyond their means before it’s too late, and instead to set financial goals and stick to them.
Financial Illiteracy is Holding America Back
Other countries are decades ahead of the United States in terms of financial literacy. Our citizens are simply uneducated when it comes to anything with a dollar sign in front of it. Many of us have little to no investment goals and instead let our money sit around under a mattress while inflation devalues those dollars, or perhaps worse, put it into a shiny new car which will depreciates in value as soon as it is driven off of the lot. Financial planning is an art, and without it, people are likely to fail to achieve any goals they’ve made with their financial advisor. If Americans were more financially literate, the country wouldn’t have trillions in debt and we wouldn’t have had the financial crisis of 2008.
Your Kids are Watching
Perhaps the most important financial truth that America would benefit from hearing is that their kids, according to studies, are forming their ideas about money from their parents before they are teenagers. If you don’t talk about money, or you use it responsibly, your kids are likely to follow suit when they are your age. If you want to break the cycle of poor financial decisions, give your kids financial advice and make sure they are financially literate. You’ll be doing them favor, and your country as well.
If you have more financial questions, the Financial Doctor is always ready and willing to offer more sound financial advice.