Survey: Most are financially illiterate

The Oakland Press ^ | July 30, 2004 | Kaniqua S. Daniel

[OldBlondBabe]

I'm trying to figure out how hubby and I turned out to be financially responsible...without a government- sponsored program. I will admit, back in the old days, when we were first married, one had to apply for a credit card and wait for approval. We receive 5-10 unsolicited credit card applications a week, offering between $10,000 to 50,000 credit each!

[Wally_Kalbacken]

Memphis TN and the county surrounding it has the highest per capita bankruptcy rate in the country - and has for years. Dane County, WI has had the lowest for years.

[anniegetyourgun]

"Building character starts when you're young, and good character is basically what having good credit is all about," Bailey said.

This can't be stated enough times.

[Gingersnap]

You know, I was struck by the same question! I never had a money management class and yet here I am today - a happy little capitalist with excellent credit.

Of course maybe some of us are just self-starters. I also have a career without having a "career course" and a 22 year marriage without a "marriage class".

I did go to Sunday School, though, so that explains the Christian angle.

[TheSpottedOwl]

My parents believed that the only debt should be a home mortgage. They had store credit cards, but paid them off every month. I have never had a credit card in my name, they were always in my ex's name, with me as a secondary name. I get offers every week. They get tossed in the trash.

[anniegetyourgun]

Though I have taught personal finance to high-schoolers, this really is a character issue. While a teacher can warn, cajole, and provide data - character must be taught AND modeled at home.

[GovernmentShrinker]

Most likely your parents stuffed some common sense into your head, which is commendable. But when my tax dollars are funding public schools to the tune of $20,000 per year per student, I sure expect those students to graduate knowing that one pays interest on credit card debt.

[Crawdad]

Can anyone recommend some literature I can give to my 15-year-old daughter to help her out. As a fairly normal 15-year old, she doesn't understand how I "evolved" from a single-celled organism to my current physical form, so she won't listen to much I tell her. I'd like her to be well-versed in personal finance. Thanks.

[Rakkasan1]

one need only look as far as Congress to see what fine
examples of fiscal discipline we have going for us.

[Gingersnap]

Well, this is probably true. but I still think it's funny that anyone would graduate from college without knowing how credit works. Of course, it would explain why lefty fiscal ideas are so popular with that age group.

[wtc911]

Good credit can be a tool to the accumlation of wealth if one knows how to properly employ it. Likewise with debt. When managed cleverly debt can also build wealth. Example; investment properties that service their own debt and are then leveraged to acquire additional investment properties that in turn service their own debt.

[KevinDavis]

My wife and I was in credit card debt. We payed the bills off. No bankruptcy. Everytime we get a credit card offer.. It goes to the trash....

[JmyBryan]

If you're going to have public education, the most impt thing you can teach children is how to make money. Of course very few teachers know anything about it other than going on strike.

[petercooper]

"There's a lot of things we don't know because no one ever sat down to teach us," Coleman said.

it's up to responsible parents

[petercooper]

http://www.daveramsey.com/

[Mamzelle]

I'm sure the "individual responsibility" folks will chime in--but I am grateful this kind of credit was hard to come by when I was younger and dumber and uncreditworthy. I believe that it is just as reprehensible on the part of the banks to lend to the uncreditworthy (young folks with no income getting credit cards) as it is to be a deadbeat.

They set up booths at college registration day to catch the unwary freshman who's just turned 18, for crying out loud.

IOW, when they default, I don't feel sorry for the banks. They have no business lending to the uncreditworthy. Half of the job of lending is finding out if the lendees can pay the money back.

[meowmeow]

"There's a lot of things we don't know because no one ever sat down to teach us," Coleman said

Sheesh! If I only knew what someone else came and taught me, I wouldn't know very much.

[najida]

- character must be taught AND modeled at home.

True, and then there are people like me, who have to survive a coupla trainwrecks in their lives to develop it.

Limping, but gettin' by ;)

[ThinkDifferent]

Spend less than you make. Save and invest the difference. That is all.

[ThinkDifferent]

I have never had a credit card in my name, they were always in my ex's name, with me as a secondary name. I get offers every week. They get tossed in the trash.

There's nothing wrong with credit cards per se, just pay them off every month. Get the right ones and you can get cash back or other bonuses. I get 1% back on everything, and 5% on gas which is especially useful these days.