It’s not just Gen Z, a significant percentage of all Americans are illiterate of personal finances, especially when it comes to borrowing, interest rates, and taxes.
I’m 65 years old; I’ve had numerous adults in my age group tell me they do not pay property taxes even though they live in a house with a mortgage. They had no idea their property taxes were paid out of their mortgage.
I’ve had numerous people in all age groups with mortgages that have no idea of how much their house would cost if paid off their mortgage over time. For example, if you purchase a $200,000 home with a 30-year mortgage, I’ve asked them to multiply their monthly mortgage payment by 360 to see how much interest they will pay over 30 years.
I’ve had quite a few people tell me a 15-year mortgage is a worse for your finances because you pay more per month than a 30-year mortgage, even though over time you would thousands in interest costs.
People are so hooked on debt and lack any knowledge of how interest expenses affect their overall financial wealth.
‘People are so hooked on debt and lack any knowledge of how interest expenses affect their overall financial wealth.’
That’s terrifying!
I’ve run into lots of people that think it’s the best thing in the world to get a big tax refund. When I tell them my goal is to make it work so I have to write a check for around $100 at tax time, they think I’m crazy.
Exactly right!
I am retired and recently read that the average retired person is $12,000 in debt to credit cards - was really shocked so I asked my friends - and sure enough, they all had huge credit card debt - really stupid after retirement.
Most had mortgages still - even after 40 years. Was really surprised.
Now I’m not.
You are far too kind. Most people I encounter are just plain stupid when it comes to anything having to do with numbers let alone finance or the economy. In fact, they are so ignorant they are mostly blissfully unaware.
I was never a mathematics whiz kid but most likely the majority of engineers I encountered in my nearly 50 year career at best forgot most of the mathematics they were taught. They could not even do algebra let alone higher math.
I can’t be anymore generous then I already am on the subjects.
DO THEY DEDUCT INTEREST ON THEIR 1040”S????
EVERYTHING YOU ARE SAYING IS SCARY.