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to teach them how to handle money and finances by example? To teach them that having everything, especially if you can't afford it is not a wise choice? That sometimes before you get the things you want, you have to budget? To earn it?
I'm really irked by the latest news that the government is stepping in to save a lot of the people who bought homes they couldn't afford, loans they should not have gotten and using the excuse that it's the mortgage lender's fault for "convincing people it's a good deal". Uhm...where does the buyer's responsibility come in??? If I can do research on loans and interest rates, why can't a lot of these people? Granted, there are exceptions to things and there is blame to be placed on the mortgage lenders, but then again...no one put a gun to these people's heads forcing them to sign the papers, right? And no...I'm not heartless...I don't want people to lose their homes and be on the street. I just am irritated that once again, it seems like the people who don't follow the rules so to speak are the ones that get bailed out all the time.
[url=http://www.msnbc.msn.com/id/22116043/]Treasury to unveil mortgage plan details - Mortgage mess - MSNBC.com[/url]
I worry that we are a society of trends started that will just pass down to the next generations and people who can't take responsibility for things are not going to be teaching their children these things at all.
Thoughts?
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Well that's true...the intentions behind all this is for the economy first and the saving homes second. I guess that's the way I should look at it...that if they don't do this, then it causes more problems that will then affect me personally. However...the problem shouldn't be here in the first place so I'm irked anyway. lol! As I sometimes say....it really chaps my hide!
I'd sooner let my dd handle ALL our family financial decisions than my mother or siblings.She has a very sound mind and good grasp of how money works. AND, she doesn't get an allowance...if she wants money she must work extra for it. And she's 6.I can tell you're a Love and Logic Parent Crick! It irks me too, but oh well.
I'm trying to teach my kids about financial responsibilty, however, they are getting the opposite example from us. My spouse was raised in a family that never drove the same car for 2 years and despite what I say, just buys what he wants regardless of his ability to afford it.
It makes budgeting extremely hard. I do hope my youngest two will fare better financially then the others. I am making an effort to teach them how money works.
Sadly, we are likely to have to file bankruptcy and become part of that ugly statistic of irrisponsible people.
While I find this humiliating and embarrassing, for my husband and his family, this is their way of life.
Lucy...Don't get me wrong...I realize things happen and people file for bankruptcy or etc. I just don't like people being bailed out all the time, kwim? I think those that are just trying to live are different than say the person that bought a 500,000.00 home when they could only afford a 200,000.00 home but wanted the best or to be completely beyond their means. It's a completely different mindset for me...I can't understand it at all, why people do it. Course...I don't understand physics either so there you go. lol!
I think your kids will at least have your wisdom and I hope you can get out of the financial situation that your dh has caused.
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Bush doesn't want to admit just before an election that the US is teetering on the edge of a depression. I paid off and cancelled every credit card I had except one and I have put it away to have but not use. My 4-year-old knows what it means when I am "writing checks" and on one occasion when he saw me crying came over and said "We have no money again?" Did you know that one out of every six American homes are ONE PAYCHECK away from homelessness?
Crick, I am about as socially liberal (DH calls me a "pinko") as it gets, but this is really bothering me too. It's like, I saw friends of mine "overextend" themselves and live in these big homes, drive fancy cars, etc. I on the other hand did not want to overextend, bought a small house, drive an old car, etc. It's like why should we as a society bail out people who made bad financial decisions? I know (based on experience) some of these mortgage lenders were such sharks, but I think people really "knew" but did not want to acknowledge the deal!
It was a way to sell homes to people who wouldn't normally beable to afford a large home. But lenders made it such a good deal that many couldn't resist but did not think down the road to what will happen as the interest rates begin to rise. That is why it is so important for us to make our children understand how money is spent or not spent. For me to stay home with my chidren, dh and I share one car (he takes the bus many days to work) we live in a small house and I can and freeze from my garden to help save on grocerys during the winter months. My oldest is learning that it is important to save money and when its a really important item he "must" purchase we discuss.... is it really needed and talk about why it is neccessary. I am proud to say that recently after discussions he has more times has said no and put the money back. I can only hope with time that we are making a difference with our kids that you buy only what you can afford and do not over spend.
Crick; I agree with you on teaching kids financial responsibility. However, living in Ohio which is where a lot of the predatory lending took place, I've watched my friends who are rather intelligent and financially stable lose their home. While some, I'm sure, didn't research enough, others did get tricked, big time. :( It's kind of like anything else in the world; if certain groups are acting unethically, do we blame the victim or the unethical party ... and how much responsibility should each party take when admitting that it is a double fault?Sorry. This topic just hits close to home because of our friends. :(
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I do understand that..
Just as with anything, there is fault with every party participating. Guess I just feel that in many ways some members (a lot?) of our society has become so grabby and materialistic and then when they can't continue on with that, they expect to be rescued. Their mentality won't necessarily change though or their habits.
I have a friend who knew that having an ARM mortgage meant the payments would be based on the interest rates. She took the attitude of "well, I'll worry about that when it happens and just sell or refiance" They did refinance after the first increased payment and then borrowed extra so they could buy recreational items, and other luxury things. Didn't limit those items to things they could buy outright, but spread the money around to make down payments and then added more loans to pay off. I mentioned to her that this kind of spending could back fire when once again the interest rates went up and her reply was "the market is really good, it's not an issue". Sigh....and now? Selling all those things they bought, trying to make their payments etc. And yet, she is crying foul with the lender...."they shouldn't have lent me that money". okayyyyy!
Kwim? It's this type of situation bugging the heck out of me.
There will always be stupid people. ;) Teaching your kid NOT to be one of them is the key. LOL Of course, how to do that is widely argued. For example, my Mother is a CPA and my Dad is a math genius. So, I should have had some clue about financial matters right? Especially since I was taught certain things, right? But man, I made some STUPID decisions in college. Why? I'm not sure. Hopefully my boys can learn from my example... and my mistakes... as they grow and learn. If not, eep. :(