Right. It's just a matter of priorities. One of my employees just had to have a new car, and bought one on credit first, only to then learn that he and his wife (with child on the way - now here) couldn't afford to buy even the smallest of homes...took him another year to get into a house. That's an example of mismatched priorities. He got what he *wanted* first, rather than what his family really needed.
People do that all of the time. They'll gladly spend $2,500 for a vacation trip or a plasma TV, but they'll complain that they can't put $500 a year into a college savings account for their child. It's just priorities. Most people *could* save, but they simply choose to spend their money on their current lifestyle.
But hey, it's a free country. People can do what they want, even if it means that they are acting stupid with their precious resources at hand.