Comments on: Why are people so bad with money? http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: KeepItSimple http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20651 KeepItSimple Tue, 02 Mar 2010 10:43:25 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20651 Respectfully to Anon, I'll speak from a personal perspective on your response. I've been in the same career for the past eleven years. Each year my salary goes up at approx. the rate of inflation. If you examined my finances six years ago, they were horrible. It wasn't because I didn't have "more money", it was because I was making decisions associated with poor money management (read The Millionaire Next Door....I was the "UAW"). Since then, I've decided to get a better understanding of my decision making. Reading books like The Millionaire Next Door, learning about the advantages of passive, low-cost investing (example - Index Funds), and most importantly, paying myself first and living below my means, have drastically improved my finances. I sleep much better at night and the quality of life is still there. There are many people who bring in a great deal of money in salary, yet are close to clueless in personal finance (much like rest of population). A recent survey found that parents actually felt more uncomfortable talking about finances than they did talking about sex. We've all got to work on educating ourselves and others, including becoming aware of the fact that the Financial Services Industry's main focus is on serving their own needs, which is why far too many people are willing to pay outrageous fees to purchase mutual funds, etc., that perform below the index. Respectfully to Anon,
I’ll speak from a personal perspective on your response.
I’ve been in the same career for the past eleven years. Each year my salary goes up at approx. the rate of inflation. If you examined my finances six years ago, they were horrible. It wasn’t because I didn’t have “more money”, it was because I was making decisions associated with poor money management (read The Millionaire Next Door….I was the “UAW”). Since then, I’ve decided to get a better understanding of my decision making. Reading books like The Millionaire Next Door, learning about the advantages of passive, low-cost investing (example – Index Funds), and most importantly, paying myself first and living below my means, have drastically improved my finances. I sleep much better at night and the quality of life is still there.
There are many people who bring in a great deal of money in salary, yet are close to clueless in personal finance (much like rest of population). A recent survey found that parents actually felt more uncomfortable talking about finances than they did talking about sex. We’ve all got to work on educating ourselves and others, including becoming aware of the fact that the Financial Services Industry’s main focus is on serving their own needs, which is why far too many people are willing to pay outrageous fees to purchase mutual funds, etc., that perform below the index.

]]> By: Anon http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20630 Anon Mon, 01 Mar 2010 14:42:36 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20630 Positive correlation does not prove causation. The fact that people spend more time on their personal finance does not necessarily mean that they are more successful financially. Perhaps, those that are more successful financially spend more time on personal finance because they have more money! Positive correlation does not prove causation. The fact that people spend more time on their personal finance does not necessarily mean that they are more successful financially. Perhaps, those that are more successful financially spend more time on personal finance because they have more money!

]]> By: 20 Cents from February 2010 | Balance Junkie http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20622 20 Cents from February 2010 | Balance Junkie Mon, 01 Mar 2010 11:02:20 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20622 [...] Thicken My Wallet wondered Why Are People So Bad with Money? It seems we need to spend a little more time on personal finance. There are some good suggestions [...] [...] Thicken My Wallet wondered Why Are People So Bad with Money? It seems we need to spend a little more time on personal finance. There are some good suggestions [...]

]]> By: Future Money-Bags http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20618 Future Money-Bags Sat, 27 Feb 2010 21:12:09 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20618 Its funny I used to ask myself this question every day! I have just recently become a 'financial planner', to be vague, and I now I find myself asking myself and everyone else around me the same question multiple times! (not so straight-forward as 'why do you suck at life when it comes to money', but to get the point across). For me, being raised in the class I was, I took it first nature to be sensible and keep track of my finances in their entirety. I do agree with PHD, that schools DO NEED TO INCORPORATE FINANCE. Math does not cut it anymore, if it ever did? I have learned so many fundamentals regarding finances recently, that I believe every adult should know (but 80% dont havea clue?) and every teenager should be taught as well. why does it take the average person until they are retired, to realize what they 'should' have done? Its funny I used to ask myself this question every day!
I have just recently become a ‘financial planner’, to be vague, and I now I find myself asking myself and everyone else around me the same question multiple times!
(not so straight-forward as ‘why do you suck at life when it comes to money’, but to get the point across).

For me, being raised in the class I was, I took it first nature to be sensible and keep track of my finances in their entirety. I do agree with PHD, that schools DO NEED TO INCORPORATE FINANCE. Math does not cut it anymore, if it ever did?
I have learned so many fundamentals regarding finances recently, that I believe every adult should know (but 80% dont havea clue?) and every teenager should be taught as well. why does it take the average person until they are retired, to realize what they ‘should’ have done?

]]> By: jack http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20605 jack Fri, 26 Feb 2010 14:23:46 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20605 in todays world everything is about material possesions, whether you are a parent trying to raise kids or a boyfriend trying to show your love for your girlfriend..it has become a nasty world as many forgot what the important things are. Everybody trying to keep up with each other based on what and how much they own. in todays world everything is about material possesions, whether you are a parent trying to raise kids or a boyfriend trying to show your love for your girlfriend..it has become a nasty world as many forgot what the important things are. Everybody trying to keep up with each other based on what and how much they own.

]]> By: Platus Awards, Cheap Acts, Selling Wine and More Links | Million Dollar Journey http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20604 Platus Awards, Cheap Acts, Selling Wine and More Links | Million Dollar Journey Fri, 26 Feb 2010 10:47:04 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20604 [...] Why are people so bad with money? @ Thicken My Wallet [...] [...] Why are people so bad with money? @ Thicken My Wallet [...]

]]> By: Prakash Dheeriya PhD http://www.thickenmywallet.com/blog/wp/2010/02/22/why-are-people-so-bad-with-money/comment-page-1/#comment-20576 Prakash Dheeriya PhD Mon, 22 Feb 2010 20:52:35 +0000 http://www.thickenmywallet.com/blog/wp/?p=1498#comment-20576 One reason is that children were never taught about money very early on, and that continued until adulthood. We need to change the curricula at schools so that children are taught very early on the value of money. I would suggest that all parents start with reading to their children books about money. A good resource is the Finance for Kidz series. You can check it out at www.finance4kidz.com Prakash Dheeriya, PhD Father, Author & Professor of Finance Finance for Kidz Series finance4kidz dot com One reason is that children were never taught about money very early on, and that continued until adulthood. We need to change the curricula at schools so that children are taught very early on the value of money.
I would suggest that all parents start with reading to their children books about money. A good resource is the Finance for Kidz series.
You can check it out at http://www.finance4kidz.com
Prakash Dheeriya, PhD
Father, Author & Professor of Finance
Finance for Kidz Series
finance4kidz dot com

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