Money (MP) Most Americans are not strangers to money problems. But, what may surprise you is that it isn’t only the lower income (poor and lower-middle class) families coping with serious financial difficulty. The truth is most Americans have money difficulty at some point or another. However, family cash flow troubles aren’t something that happens overnight. It’s generally attributable to stuff like bills, and depleted income that impacts how much money is disappearing from their banks and investing accounts.
Then there are credit cards, these allow most people to live above their means. The high balances arrive at the end of the month, and many can only afford the minimal payment. Eventually, these small payments wind up being a large debt load. But, credit cards aren’t the only complications we face. Assuming that you have or may one day face family money problems below are the top surveyed around the country… Beware!
American Family Top Money Problems
1. Not enough income!
Every year, Americans say lack of cash and way too much debt are their biggest worries. Moreover stress, about 25 percent of families trust just one source of income, which can make it feel impossible to save money, reduce debt and boost your net worth.
2. Not saving for retirement
A rising number of Americans aren’t preparing for the day when they’ll need to live off their savings. Over a third of adults say they have not started saving for retirement (see easy retirement planning) yet, according to a national poll accompanying Bankrate’s monthly Financial Security Index. Even Americans who are getting close to retirement age appear as if struggling in terms of planning their financial future. The survey shows that more than a quarter of the respondents age 50 to 64 have yet to start saving for retirement.
3. One spouse manages the money!
Mostly we’ve discovered it’s the breadwinner, whether woman or man, who manages the family finances. And, when one marriage partner manages the money and the other isn’t consulted about major spending decisions, a huge problem is created. If you guys often argue of over money, if your spouse yells at you for overspending, takes away your credit cards, you maybe married to a financial bully. Being a bully can do a lot of damage to the relationship. Seek help sooner rather than later!
Exceptions to the no one spouse rule is: Studies show the best time for financial decision-making is at the age of 53 – either side of that we are most likely to make mistakes, such as paying too much for credit cards, failing to work out interest rates, paying too many fees and even under-estimating the value of one’s own home. So, if your spouse is 53 and you’re not you may want to let them make money decisions. Just saying!
3. Accumulating too much debt!
The typical household’s credit card debt exceeds $7,000, according to Nerd Wallet. In addition to this debt, many Americans also must worry about mortgages, car loans, and of course student loans. “Keeping up with the Joneses” is one way families accumulate lots of debt. We are a country which has become accustomed to debt. We judge one another by what we have and don’t have, so couples feel pressure to buy things they can’t afford as they keep up with the Jones’s. As a couple spends and spends, with no regard for their mounting debt, the marriage that suffers. The stress of mounting debt will cause money problems in your marriage.
4. Poor investment decisions!
Everyone makes a bad financial decision sooner or later. But, when husbands make retirement plans without considering their wife will likely outlive them by many years, this failure to leads to not enough money to live out her retirement years in comfort. “We see it everyday. Clients come in asking where’s their money. And I have to tell them there is none left. It break your heart,” says Gina Steiner, of US Financial Life.
5. Can’t enjoy spending your money!
Why? Because most children are pissed off because today we’re living longer, children don’t inherit from their parents until they’re in their 60x or even 70s. “We’ve got bills Mom and Dad and, you’re frolicking around the world spending our inheritance. “I love you but, can’t you just die and be done with it. You’ve live your life. Geez!” Maybe some frank talk and some timely gifts would helped your children meet their bills and they won’t be so mad your still living.
6. Conflicts over elderly care!
Often when aging parents become ill without ever discussing important financial decisions or where important financial documents are kept, conflicts between adult children can increase.. Dealing with a parental care can rekindle sibling rivalries, and the discord can tear families apart. If you pass away, failure to set up a will and divide property can send your children to court. The child who provided most of your care may feel entitled to a greater share of an inheritance. Communication is crucial. Have a family meeting and try discussing with your children your desired care plan before you get sick. Tell them about your funeral wishes, and who will get what, way before they have to sit at the reading of the will. Ideally, going this route can identify, and correct issues between your children before they become another irreconcilable family problem.