Overspending and Bankruptcy in America

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Financial overspending in America is a problem that is not getting better. Many people are spending money they do not have, on items that they do not need. Students graduate from high school, get a first job, and move out on their own without any proper training regarding financial planning and money management. These young people become parents and their children are not anymore trained than they are. This lack of financial training is ruining our country financially. People overspend due to a lack of planning ahead, revolving credit and the overuse of credit cards. These problems could be solved by requiring financial budgeting classes to anyone who has filed bankruptcy and as a graduation requirement for students in high school.
There are many reasons why people overspend but the main reason is a lack of planning ahead. Statistics show that “Over forty percent of US families spend more than they earn” (Consumer). Establishing and following a budget would prevent people from overspending. Merriam-Webster online dictionary defines a budget as “an amount of money available for spending that is based on a plan used to decide the amount of money that can be spent and for how it will be spent” (Budget). A budget is a great tool to guide a person in order to prevent overspending. If followed properly it will prevent impulse shopping because the consumer will be aware of how much money is allocated for what items. They will also be mindful of future debts that will need to be paid and this knowledge will help them to plan ahead for these future expenses and eliminate unnecessary spending.
Having revolving credit is another reason why people fall into debt. “Revolving credit is the credit, available on credit cards” (US Personal). “Th...

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... bankruptcy and as a graduation requirement for students in high school.

Works Cited

American Consumer Debt Statistics.Consolidated credit.org. Solidated Credit Counseling
Services. n.d. Web. 12 Nov. 2013.
Budget. Merriam-Webster. Merriam-Webster, n.d. Web. 29 Nov. 2013.
Consumer Debt Statistics in America. Progressiverelief.com. 2010. Web. 12 Nov. 2013.
Elias, Stephen R. and Leon Bayer. The New Bankruptcy. Nolo. 2013. Pages 1-394. Print
Leonard, Robin, and Margaret Reiter. Solve Your Money Troubles: Debt, Credit & Bankruptcy.
[Berkeley, CA]: Nolo, 2009. Pages 1-416. Print.
Sotiropoulos. Veneta, and Alain D’Astous. “Social Networks and Credit Card Overspending
Among Young Adult Consumers.” The Journal of Consumer Affairs 46.3
(2012): 457-484. Questia.com. Web. 13 Nov. 2013.
US Personal Debt Statistice. DebtAndUs.com. 26 Apr. 2011. Web. 12 Nov. 2013.

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