“Consumers Aren’t Spending Even In a Booming Job Market”

[SheilaT]

41. Your reply reminds me that movies and TV shows themselves

often show people with an unrealistic standard of living, given the jobs they have. A nicer home or apartment, better clothes and stuff. It makes a viewer think they ought to be able to live as well. And then, the easy availability of credit makes it almost possible.

I'll say that the thing that most amazes me is how many people always have a car payment. They buy the most expensive vehicle they can possibly afford, are often underwater the first couple of years, and often even before it's paid off, trade it in for a newer one, and probably a bigger car payment. And if they're in an accident during the early part of the loan and the car is totalled, they still owe money on it. The idea of buying a smaller, less luxurious, or even a used car just isn't on their radar screen.

It doesn't help that basic consumer finance and economics simply isn't taught in school. It should be, starting in 7th grade or so. I had the good fortune to have a 7th grade math teacher who knew we wouldn't be taught any of this, so he took a week out of the regular curriculum to go over certain basics, including how to fill out a check, and how much the house winds up costing you on a 30 year mortgage. I do currently have one of those, with 24 years left on it. And this was back before credit cards for the masses, and so that topic obviously didn't come up.

I am charmed by the story of nice underwear for Christmas. It sounds as if your family has their Christmas spending under control, that you spend your money for that, rather than the way I happen to, at other times of the year. For me, attending various science-fiction cons has become very important, and so I go to them.