• ElderberryLow
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    9 months ago

    Man we need more financial literacy for kids prior to 18. But at the same time, our entire life is just one large conglomerate commercial. It’s stacked against us. Our economy thrives on us spending above our means. If everyone was to stop spending and pay off their debt, we’d be in a huge depression lol.

    • malloc@lemmy.world
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      9 months ago

      I do believe financial literacy plays a huge part in it. But at the same time the credit card industry is sort of known to hand out credit cards like candy.

      Some of yall probably are not aware but before the CARD act, the CCC companies would send reps to American campuses. “Sign on bonuses” were given to students who applied for their card. Usually cheap trinkets like a bong or even just straight cash.

      Students without any stable job would get credit limits that would not make sense. This temptation lead to poor spending habits and accumulation of debt. Possibly even filing for bankruptcy later in life or just having bad marks on credit reports due to non-payment and sent to collections (this impacts ability to get other loans).

      It’s stacked against the normal person.

    • iain@feddit.nl
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      9 months ago

      I don’t think financial literacy is the problem. I think the majority of the debt is incurred because people need to spend money on necessities. No amount of sound financial planning can make that go away

      • malloc@lemmy.world
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        9 months ago

        This is also true! Increased cost of living combined with stagnating wages. This is partly the reason why “payday loans” exist.