The Debt Is Sacrificing Future Day Needs For Present Day Desires

1256 Words Apr 6th, 2015 null Page
“Bad debt is sacrificing future day needs for present day desires.”According to Suze Orman, financial advisor, this is what debt entails. As americans we are 18.1 trillion dollars in debt, and struggle financially within the family. Debt is a major issue in today’s materialistic world. As a society, we have a hard time deciphering the difference between essential needs and temporary wants. We propose that through educating the american youth, we will be able to reduce the major financial troubles of today, that prevail in many families across the nation.
The Problem Teenagers make up a huge portion of the consumer market, but few are financially literate.According to a 2011 survey from the investment firm of Charles Schwab & Co., “More than 75 percent of 16- to 18-year-olds say they are financially savvy, but less than 20 percent knew what a 401(k) plan is and only 32 percent knew how credit card interest and fees work” (Prah, 2014). Clearly teens have a false confidence about money, leading to poor financial decisions. With credit cards readily available, it is easy for a teen to go and buy a T-shirt without thinking about it twice. Many teens, and even some adults do not have a clear understanding of needs and wants.This leads to overspending and debt. Most teenagers, growing up, are provided for entirely by their parents or guardians. Having needs met; any money that they do have, either from an allowance or job, usually goes to their wants. This forms bad habits as…

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