It's amazing to me how people well above the poverty line find a way to spend it all -- a house they can't afford, cars they can't afford, student loans to the tune of hundreds of thousands... It's a damn shame financial skills are not taught in this country.
This shows financial education is needed, but more important it shows that the basic income is too low for the temptations available. In my opinion there are way too many temptations and people aren't thought how to resist them. When I say temptations I'm referring to gadgets, travelling, fashion. Everybody wants to be part of the newest trends and that's the main issue. Also, nobody wants to live in a studio or with a roommate up until 35, but I feel like a house isn't a priority anymore.
— Will, did you really make two and a half million last year?<p>— Yeah, sure.<p>— How did you spend it all?<p>— It goes quite quickly. You know, you learn to spend what's in your pocket.<p>— Two and a half million goes quickly?<p>— All right, let's see. So the taxman takes half up front, so you're left with one and a quarter. My mortgage takes another 300 grand. I send 150 home for my parents, you know, keep 'em going. So what's that?<p>— 800?<p>— All right, 800. Spent 150 on a car. About 75 on restaurants. Probably 50 on clothes. I put 400 away for a rainy day.<p>— That's smart.<p>— Yeah, as it turns out, 'cause it looks like the storm's coming.<p>— You still got 125.<p>— Yeah, well I did spend 76,520 dollars on hookers, booze and dancers. But mainly hookers.<p>— 76,5?<p>— I was a little shocked initially, but then I realized I could claim most of it back as entertainment. It's true!<p>(Margin Call, 2011)
Will teaching basic financial skills in school actually help? We teach basic health skills like nutrition and exercise but look at America as a whole, we're unhealthier than ever yet we still teach health in school. We can teach basic financial literacy but I don't think by and large it'll change anything.