Personal finance

[aussiesareforever]

Not trying to be self righteous by any stretch of the imagination but I wish more people spent time in this section of the forum. I have truly learnt a lot from MyFICO and I am appreciative of all the help I have gotten to understand how the credit system works.

However, I spend a lot of time reading through the credit card boards and cringe some on the inside when I read some posts. I feel like many people are encouraged to apply for credit and are celebrated when they get a new account (as they should be). I just don't see words of caution or financial responsibility associated with those new accounts.

Having filed bankruptcy in the past, I never want to be in that situation again. I live on a budget and only buy what I can afford. I typically just use my credit card for everything but there is money designated for paying it off when I make the purchase. I know that there are people on here who PIF but I just wish more people would spread the word and encourage financial responsibility and freedom.

Congratulations on your 0% interest card with a 20K limit. The rewards are amazing and the company is great. Enjoy it and don't forget to only charge what you can pay off every month

[RonM21]

I guess it just depends on the poster and who is responding. But I'm sure you are also right. It's probably a mixed bag. I do see people give some of those warnings to newer posters more often or when someone is debating on a significant choice and seems unsure how to handle it.

Maybe some assume that people on here that clearly have a history already know the risks.

[Kevin86475391]

For me I tend to assume that people either already understand how to handle their credit responsibly or that they don't want to/aren't ready to hear unsolicited advice. If someone asks for advice or opinions about responsible usage I'm happy to weigh in, but I know quite well that people can get very sensitive and defensive about finances and so I try to avoid pushing the topic.

Personally, I also know that I can't stand unsolicited advice. It's actually one of my biggest pet peeves. I consider myself an open-minded, rational person, but it's almost impossible to give me unsolicited advice about something without annoying me at least a little, especially if it comes off as cautionary or, worse, critical. I generally try to be gracious when confronted with unsolicited advice, but inside I'm pretty much always frowning and going, "Mind your own business! "

So yeah for me at least, I always try to keep my advice and opinions to myself unless the person has demonstrated a desire, or at least willingness, to hear them. That said, I certainly agree that it would be extremely beneficial if people received a better education in financial literacy and spent more time worrying about their personal finances, budgets, and long-term wealth management than they do simply focusing on credit card approvals and CLIs.

[UncleB]

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@Kevin86475391 wrote:

For me I tend to assume that people either already understand how to handle their credit responsibly or that they don't want to/aren't ready to hear unsolicited advice. If someone asks for advice or opinions about responsible usage I'm happy to weigh in, but I know quite well that people can get very sensitive and defensive about finances and so I try to avoid pushing the topic.

Personally, I also know that I can't stand unsolicited advice. It's actually one of my biggest pet peeves. I consider myself an open-minded, rational person, but it's almost impossible to give me unsolicited advice about something without annoying me at least a little, especially if it comes off as cautionary or, worse, critical. I generally try to be gracious when confronted with unsolicited advice, but inside I'm pretty much always frowning and going, "Mind your own business! "

So yeah for me at least, I always try to keep my advice and opinions to myself unless the person has demonstrated a desire, or at least willingness, to hear them. That said, I certainly agree that it would be extremely beneficial if people received a better education in financial literacy and spent more time worrying about their personal finances, budgets, and long-term wealth management than they do simply focusing on credit card approvals and CLIs.

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+1

I feel the same way; I'll also say that a light-touch definitely works best with me (otherwise I tend not to listen).

Personally, I tend to very rarely give direct advice, instead I rely on simply telling my own story (when appropriate) and then folks can decide how to apply my 'lesson learned' to their own situation. 

I've said before... you can give someone a filet mignon and baked potato on a nice plate or on the dirty lid of a trash can.  It's the same meal either way, but the presentation will determine how well the meal is received. 

[Anonymous]

I love to budget. I love to save. Rarely do I buy anything just because it's on sale or I just like it. If I don't need it, I don't want it. It has to be a need. Most stuff I charge to my card are bills and groceries and vacations. And  rarely do I carry a balance; I hate that the numbers are staring back at me and drives me crazy. 

I wish I knew how to budget before having credit cards. Instead I learned about credit cards and got in to some trouble with it. Then learned to budget. It was tough! Now, I teach others to budget, save and use cards responsibly! 

[Appleman]

It would be nice if budgeting and finance were required in the schools. Starting early would save at least a few people from making the mistakes that many of us have made.

Another thing is that the advertizers do such a great job selling their products. For only $20 a month you can afford almost anything seems to be the line many hear when they see ads for credit products. If only they understood how much it will actually cost them long term.

[UncleB]

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@Appleman wrote:

It would be nice if budgeting and finance were required in the schools. Starting early would save at least a few people from making the mistakes that many of us have made.

Another thing is that the advertizers do such a great job selling their products. For only $20 a month you can afford almost anything seems to be the line many hear when they see ads for credit products. If only they understood how much it will actually cost them long term.

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+1

Back when I was in school we were actually taught (I think in economics) how to use a paper checkbook register.  By that time I already had been using one for a couple of years, but many of my peers had not and the instruction was invaluable for them.  (We also learned how to manually fill out a 1040EZ, which came in handy as well those first years).

That was years ago, and I know things are different now with the internet and smartphones, but I'm still at a loss for words at the number of younger people who have never used a paper checkbook register.  Even if you don't write checks it can come in handy, especially if you are running a close balance like many younger people are apt to do.

[Anonymous]

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@aussiesareforever wrote:
Not trying to be self righteous by any stretch of the imagination but I wish more people spent time in this section of the forum. I have truly learnt a lot from MyFICO and I am appreciative of all the help I have gotten to understand how the credit system works.

However, I spend a lot of time reading through the credit card boards and cringe some on the inside when I read some posts. I feel like many people are encouraged to apply for credit and are celebrated when they get a new account (as they should be). I just don't see words of caution or financial responsibility associated with those new accounts.

Having filed bankruptcy in the past, I never want to be in that situation again. I live on a budget and only buy what I can afford. I typically just use my credit card for everything but there is money designated for paying it off when I make the purchase. I know that there are people on here who PIF but I just wish more people would spread the word and encourage financial responsibility and freedom.

Congratulations on your 0% interest card with a 20K limit. The rewards are amazing and the company is great. Enjoy it and don't forget to only charge what you can pay off every month

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Think about these words for a minute: It took self realization of having to file for bankruptcy and having to admit that you had significant trouble paying your debts that propelled you into managing your finances much better and learning to live with less. I'm learning that lesson young just reading the stories and testimonies here. I don't want to ever experience a tax lien or stand in front a bankruptcy court in my life.

Most people go through life never learning that lesson, never saving for tomorrow, spending just as quick as they earn, justifying their erroneous logic, and becoming defensive/combative about anyone who challenges them otherwise. It's debt that drives people to make very rash, sometimes criminal decisions that forever affect their lives. I don't wish to ever put myself in a situation where I have to act criminally in order to get the bare necessities or to satisfy my debts.

What is criminal is that primary & secondary school does not hammer home enough financial lessons on how to surivive and thrive in life financially and what the consequences of bad financial planning are. Neither do most parents. It starts at home and has to be reinforced in the classroom, like most things in life.

My parents, bless them, just haven't taught me enough about finances to benefit my life in a way that would be most optimal to building wealth. Neither has my university. I don't think I am alone in thinking this way.

[minski]

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@UncleB wrote:

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@Kevin86475391 wrote:

For me I tend to assume that people either already understand how to handle their credit responsibly or that they don't want to/aren't ready to hear unsolicited advice. If someone asks for advice or opinions about responsible usage I'm happy to weigh in, but I know quite well that people can get very sensitive and defensive about finances and so I try to avoid pushing the topic.

Personally, I also know that I can't stand unsolicited advice. It's actually one of my biggest pet peeves. I consider myself an open-minded, rational person, but it's almost impossible to give me unsolicited advice about something without annoying me at least a little, especially if it comes off as cautionary or, worse, critical. I generally try to be gracious when confronted with unsolicited advice, but inside I'm pretty much always frowning and going, "Mind your own business! "

So yeah for me at least, I always try to keep my advice and opinions to myself unless the person has demonstrated a desire, or at least willingness, to hear them. That said, I certainly agree that it would be extremely beneficial if people received a better education in financial literacy and spent more time worrying about their personal finances, budgets, and long-term wealth management than they do simply focusing on credit card approvals and CLIs.

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+1

I've said before... you can give someone a filet mignon and baked potato on a nice plate or on the dirty lid of a trash can.  It's the same meal either way, but the presentation will determine how well the meal is received. 

It is not the same meal. The one on the dirty lid has extra "seasoning" on it. Eww. 

But I too saw what the OP saw. 

My parents taught me how not to get into debt (haven't gotten in one I couldn't get out of; no negatives in > 10 years of credit history) but like previous poster, they didn't teach me how to build wealth. I'm working on that myself. 

[UncleB]

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@minski wrote:

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@UncleB wrote:

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@Kevin86475391 wrote:

For me I tend to assume that people either already understand how to handle their credit responsibly or that they don't want to/aren't ready to hear unsolicited advice. If someone asks for advice or opinions about responsible usage I'm happy to weigh in, but I know quite well that people can get very sensitive and defensive about finances and so I try to avoid pushing the topic.

Personally, I also know that I can't stand unsolicited advice. It's actually one of my biggest pet peeves. I consider myself an open-minded, rational person, but it's almost impossible to give me unsolicited advice about something without annoying me at least a little, especially if it comes off as cautionary or, worse, critical. I generally try to be gracious when confronted with unsolicited advice, but inside I'm pretty much always frowning and going, "Mind your own business! "

So yeah for me at least, I always try to keep my advice and opinions to myself unless the person has demonstrated a desire, or at least willingness, to hear them. That said, I certainly agree that it would be extremely beneficial if people received a better education in financial literacy and spent more time worrying about their personal finances, budgets, and long-term wealth management than they do simply focusing on credit card approvals and CLIs.

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+1

I've said before... you can give someone a filet mignon and baked potato on a nice plate or on the dirty lid of a trash can.  It's the same meal either way, but the presentation will determine how well the meal is received. 

It is not the same meal. The one on the dirty lid has extra "seasoning" on it. Eww. 

But I too saw what the OP saw. 

My parents taught me how not to get into debt (haven't gotten in one I couldn't get out of; no negatives in > 10 years of credit history) but like previous poster, they didn't teach me how to build wealth. I'm working on that myself. 

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It actually is the same meal, in our analogy the "extra seasoning" from the dirty lid can be thought of as "attitude and judgement". 

Both "meals" are received much quicker without the "extra seasoning".