<p>Apparently 40% of Americans couldn’t:</p>
<p><a href=“Financial Vulnerability”>Financial Vulnerability;
<p>Seems there are a lot of folks living paycheck to paycheck. Many were in a bad situation when the federal government shut down. It’s scary that so many are living so close to the financial cliff. In my world, it’s not all that unusual for $2,000 plus expenses to arise, especially if you own a home or insurance premiums or taxes rise. </p>
<p>Not that it likely matters, but that study was done in 2012, when we were still recovering from the recession. That said, plenty of people live in poverty, or are low income, or don’t manage their finances well, or live paycheck to paycheck unfortunately.</p>
<p>*typo</p>
<p>When the federal government shut down, my hair dresser said few of her clients had to cancel multiple times because they didn’t have extra money to get a hair cut. I don’t go to a fancy place to get my hair cut because I started going to this place 30 years ago. My hair dresser finally had to tell them to not make another appointment until they are back at work because she was also losing income by having appointments cancelled at last minute.</p>
<p>For us, yes, but for many in my school district or others that I know, it would be VERY difficult or impossible. I’m a little surprised that it’s only 40%, but I remind myself that there are wealthier areas where the stats are different.</p>
<p>We could and have had that 3 month jobless stint in the past. DH is self employed and was in a motorcycle accident, unable to work for a few months. Thank goodness DH was raised to be a “saver” and to always have a liquid emergency fund. Even so, he said that you never really realize how much you are putting out until you have nothing coming in. </p>
<p>Many people that I know could not put their hands on $2000 (unless it came from credit cards or a loan from a relative). As someone who was raised paycheck to paycheck I realize how hard it is to break out of that mentality so I am not surprised that 40% of the population still carries on that way of life. </p>
<p>No surprise to me. I could’ve a few months ago until an illness wiped it out. Now, I don’t make enough to save. </p>
<p>My story is very common in the so called richest country in the world.</p>
<p>Sorry,can’t edit on phone. Mo3s, you make it sound like a choice. For many, probably most, it’s not. 20-25% of children in my state live in poverty. Do you think their parents don’t want to change that?</p>
<p>$100 in your wallet, $1000 you can get to immediately if needed and 6 months salary as an emergency fund in case of layoffs has been our rule of thumb. Then you get to save for retirement. College savings is next on the list. We also believe that there are things you should save for that are not emergencies. Your car will need to be maintained, the furnace will eventually need to be replaced, you will need to visit the doctor, dentist, optometrist etc. If you treat them as expenses to be saved for and not emergencies they never will be. By the way I don’t keep a $100 in my wallet.</p>
<p>Even those who earn good salaries live paycheck to paycheck. I worked as a financial advisor for a short-time (almost 2 years…hated it…lol), and it was shocking/frustrating to see good-income people waste their money. Sometimes it’s one spouse that is a spendthrift, sometimes it’s both. Too many folks think luxury items/expenses are necessities…mani/pedis, highlighted hair appts, gym memberships, golf, pricey handbags, expensive cars, convenience foods, smart phones, restaurants (work lunches!), vacations, family to Disneyworld, etc.</p>
<p>Not only are these folks living paycheck to paycheck, but they’re slowly adding to credit debt.</p>
<p>“Sorry,can’t edit on phone. Mo3s, you make it sound like a choice. For many, probably most, it’s not. 20-25% of children in my state live in poverty. Do you think their parents don’t want to change that?”</p>
<p>Are you kidding me? I live in NY State. Poverty here is pretty evident. However, I was speaking of the people that I know. Most of them are solid middle class, living above the poverty level but beyond their means. No college savings, no nest egg, and plenty of debt. Those are the ones I speak of who were raised in a paycheck to paycheck mentality and continue that trend. </p>
<p>I will speak though for the lower income people (shamefully some are relatives) that I know who receive $13K total income tax refunds due to Earned Income Credit and who bank none of that money for emergencies. They are working the EIC by purposely not getting married (while having several children) and claiming the lesser earning parent as the head of household. It is the biggest scam going in America right now. There are people out there for whom this is a big help every year and those are the ones who save that money for a rainy day. Then there are those who use it for expensive “toys” and 3 months down the road cannot pay their day to day bills. So by when you say I am saying some have a choice, yes I am saying that. I have been poorer than poor and my husband was raised by farmers who worked every day of their lives and saved and scrimped and repaired and made do without needing the latest and the shiniest. For that, my father in law is living out his 80’s as a retired farmer without having to rely on any public assistance or having to sell off his land to make a living. I am saying that mentality is missing in today’s society. So to say people have a choice, yes, some do.</p>
<p>Yes, some do. Many, if not most, DO NOT. </p>
<p>My accountant told me a story of having to prepare a budget for a couple making $200k/year. No kids. No student loans. 10 years ago, when $200k was money even in the NJ suburbs of NYC. </p>
<p>yes romani, choice can be a factor. I use the word factor because choices affect poverty, but I realize no one wakes up in the morning and makes the active choice- I want to be poor!
How much education a person has, if they have children, when they have children, how many children, if they marry, if they are tobacco users, if they drink alcohol or use illegal drugs, those are examples of choices that affect the likelihood of being in poverty. Add those items to choices mom2 listed that affect paycheck-to-paycheck living(though not poverty).</p>
<p>I didn’t say choice isn’t a factor! </p>
<p>Btw, education isn’t really a choice for many. Even whether or not to have kids isn’t necessarily a choice. </p>
<p><a href=“Everyone In America Is Even More Broke Than You Think | HuffPost Impact”>HuffPost - Breaking News, U.S. and World News | HuffPost;
<p>from the article above:<br>
"…-If you make more than $15,000 (roughly the annual salary of a minimum-wage employee working 40 hours per week), you earn more than 32.2% of Americans.</p>
<p>-If you make more than $30,000, you earn more than 53.2% of Americans…"</p>
<p><a href=“http://www.payments.pitt.edu/showme/samplebudget.php”>http://www.payments.pitt.edu/showme/samplebudget.php</a></p>
<p>here is a sample budget of someone making $30,000 a year.</p>
<p>No golf here…or phone, or internet, or clothes, or insurance </p>
<p>SLACKERS!..yes, that’s sarcasm.</p>
<p>My post was answering the question- “do you think their parents don’t want to change that?”
Then I named many financially bad choices people sometimes make. The changes I named could change (or could have) changed the situation. We don’t just wake up a single parent of three, at age 25, and in poverty. There were choices that led to that example, and choices afterward that could change it for the better, or for the worse. Sometimes when we make a choice new doors open, but other doors close.</p>
<p>Except in cases of rape, or step-parenting, how is not having children not a choice?
Any person can chooses abstinence or many many birth control methods. As far as I know, most every common method of birth control is cheaper than raising a child. Preventing pregnancy is cheaper than having a child. Plus, many who are very poor can get free birth control aids from their local health department.
Nope, except in cases of rape or step-parenting, I cannot accept the idea that someone has to have children.</p>
<p>There is definitely choice involved. I think people tend to go to the extremes. Either it’s-all-their-fault or blame-society. While some people may do everything they can and still not be able to get out of poverty, there are plenty of people who make bad choices. For example, many people who are unemployed/underemployed or on welfare have cell phones. Many have cabel and internet at home. The list goes on. Those are not necessities and are extemely expensive, especially for someone making minimum wage. While some people are truly born with the odds start against them, personal responsibility can’t be ignored.</p>
<p>Younghoss, birth control fails.
I had an iud, which was still in place when I became pregnant.
I chose to have a legal abortion, but that also takes money, and some states make it quite difficult to access care.
I am also unaware of health depts that dispense birth control, where are you referring to?
They may also be unaware that they are pregnant. I had zero morning sickness ( although I had quite a bit with other pregnancies), with my last pregnancy. I also had periods for three or four months, so it took that long to even find out I was pregnant.</p>
<p>In my experience emergencies are generally less than $1,000 or more like $10,000+ ( and come in threes)
Medical bills after insurance for our oldests birth & hospital stay, were almost $100,000. We were in our early 20’s, we didn’t have much savings.</p>
<p>Can we just accept the fact that people choose to have kids they can’t afford? Of course, birth control may fail but that would be the exception not the rule. I do happen to know a 16 year old who had a stomach-ache and ended up with a baby but this is unusual and not the basis of any argument of the bad choices that lead to poverty. Also, paycheck -to -paycheck living is not poverty. Heck, poverty in America is not even poverty.</p>