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We are usually very busy to notice that we spend our money improperly. We do not have a chance to stop and analyze our financial behavior. And that is why we do not even think that some financial habits we have sooner or later may lead to some unpleasant consequences.
It is not a secret that sometimes we spend our money unreasonably. We buy some things that we do not even need, we lose our money playing some games of chance or we do not pay enough attention to the terms of our credit card repayment. Usually we do not really notice such things thinking that we can afford being free with money from time to time. But, in fact, such behavior forms our “bad” money habits. So, what are the most common “bad” money habits of people in the USA?
More than 40 per cent of Americans do not pay back their credit card debt in time
In the USA many people do not pay their credit card debt every month. They just pay some minimum sum and wait for the other settlement period to come. It is not quite right attitude, because in this case you will have to pay back more money than you actually spend because of the interest rate. According to the statistics of NerdWallet an average American family who has credit card debts pays about 1300 dollars in interest per year.
About a half of Americans do not have enough money for a rainy day
It is important to have some money saved because one day you may really need it. It is a pity that many people ignore this advice and spend everything they earn in one month. Some extra savings may help you at the time of trouble, such as job loss or any health problems.
The experts recommend that everyone has some savings in the amount of six salaries. They advise to put at least ten per cent of every income aside to save some sufficient sum. It may sound difficult for those who are not used to making savings, but when it becomes a habit your savings account will add up quickly.
The number of parents who take student loans has increased
The statistics say that the number of adults with student loan has quadrupled in recent years. Parents take student loans to provide good education for their children, but, in fact, such debt aggravates the position of the parents themselves. They have fewer options for loan repayment and in addition they are closer to retirement, which means that after their retirement they might not have a chance to pay this debt back successfully.
Parents who want to take such a loan should think not only about their child’s education but also about the sum they have to borrow. It is a good decision to find some cheaper colleges or some other variants of financing. For example, a child may take on some part of the student debt too.
The statistics says that an average student loan is about 23 000 dollars. Total debt on student loans in the USA is 875 billion dollars and it increases every second.
Only 58 per cent of Americans have retirement savings
About a half of the adults in the US does not have any savings for retirement. There are two reasons for that. The first one is that they simply do not bother to do it, and the second one is that they just do not have any money for that, because they have to pay back their debts.
Again the experts recommend put some 5 – 15 per cent of your income on your savings account to prepare for your retirement. It is important to save some money today, because tomorrow it will provide you a good life.
Today money plays an important role in our lives and because of that we should learn how to manage it correctly. The first step that should be done is to get out of debt. It is not the easiest thing to be done, but you just have to do it to provide better future for you and your family.