Monetary Myopia
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Monetary Myopia
“A penny saved is a penny earned.” -Benjamin Franklin
This quote by the well-known Founding Father summarizes the most fundamental idea behind the lexicon of personal finance. Budgeting often gives the impression that it is some sort of mysterious and forsaken talent that only definite factions of United States citizens can ever seem to comprehend fully. Because of this predicament, current high-school curricula in the majority of states now require the completion of a personal finance course prior to graduation. This initiative by the government invites healthy thinking and practical, real-world issues into the classroom. These kinds of training-tools are important because the lack of budgetary management can often lead to unfortunate personal circumstances.
There are many financial pitfalls people become victims of when there is no budget in the household. Gambling-debt is one of these concerns. Even though a one dollar lottery ticket may seem harmless, many people throughout the world accumulate a momentous amount of gambling debt every year. California is home to one million people who are addicted to gambling. To try and reduce this mess, the government has provided a self-ban arrangement with every casino in the state (Trujillo). Unfortunately the rise in demand for gambling by addicts has prompted people to create websites that allow for around the clock access to any casino game of the players choosing. This, combined with easily available bank-lending, can certainly allow for someones gambling debt to sky-rocket out of control rapidly.
Probably the biggest disadvantage of not keeping up with finances is the debt received by irresponsible purchases with a credit card. Credit cards allow for people to acquire almost anything a buyer could think of without paying anything but an insignificant fee at the end of the month. While this may seem like a superb deal for the shopper, this can chalk up massive amounts of debt. This may sound dreadful already, but the original amount owed does not even compare with the overwhelming interest-rates that continue to grow every month. Often times, people believe that they are in control of their debt because they can manage to pay for the minimum each month. Sadly they frequently overlook the total, and their debt consumes them. Credit cards cause trouble for many people. In the first quarter of 2010 alone, banks dismissed $18.7 billion in debt for credit card-holders who could not afford to pay it (Arends). Impulsive nature, access to virtually unlimited funding, and a “keeping up with the Joneses” mentality all adds up to one thing; fiscal liability.
The effects of these financial fiascos furrows deep within every corner of a persons life. Commonly, within a relationship, a spouse is hesitant to admit to his or her significant-other about the purchases