Thursday, February 2, 2012

1 Crisis Away From Poverty

According to this article, while here is a relatively small number of Americans who live under the poverty line, about %15. However, nearly half the country is just one bad crisis away. If someone has a medical issue, lose their job, etc, they would be under the poverty line. Many peoples' lives could be turned upside down very quickly. They would quickly go into debt, lose their home, and barely be able to scrape by. Many would resort to payday advance loans, which can be very bad. They have extremely high interest rates, and the people who get them often cannot afford to pay them back. People end up in a cycle of debt they cannot escape. A potential cause of this is a lack of financial education in US schools. Many people don't know how to spend responsibly, and live above their means.


Smith said...

What type of financial classes would you suggest? What age would you start these classes?

Katherine said...

This is an interesting article because depending on your surroundings you may never see someone out of your same financial level. It is also ridiculous that the U.S. is just barely looking good. It's nice to say that only 15% are under the poverty line, but no one will brag about how many are just barely above poverty. I think you're right, something must be done to prevent this earlier on in people's lives. But the problem would be how to get people to take a charge before the consequences really hit.