Text I just got from my daughter (she's 24). She is at the bank waiting to have a form notarized.
Her: Lady in the waiting area on her phone, "I always check my account balance on the app and it said $168". It was normal for me to have more money than other college kids but this lady is 50 or 60. I mean she could have more money in other places but still.
Me: Surveys show that most people can't cover an unexpected $400 expense.
Her: People need to get their stuff together because that's crazy.
Me: Just keep being abnormal and you'll be fine.
Her: Sometimes it's good to be different.
We've raised our daughter well
February 15th, 2020 at 05:45 pm
February 15th, 2020 at 06:36 pm 1581791766
February 15th, 2020 at 06:37 pm 1581791854
February 15th, 2020 at 06:39 pm 1581791988
February 15th, 2020 at 10:44 pm 1581806641
February 16th, 2020 at 12:56 am 1581814571
However, it did spur a good conversation with my daughter. I pulled up a couple of those recent studies that showed 40% of people surveyed (about 12,000 people in the study) said to pay an unexpected $400 bill, they'd have to sell something, go into debt, or forgo paying another bill. And another one that said 78% of Americans live paycheck to paycheck. I was actually surprised by that number. I've always heard it was in the 60-70% range.
As for the woman in the bank, it's still not a great idea to have that little in your account regardless of your situation. I do know, since my daughter and I both bank there, that there is a minimum balance requirement. If she really only has under $200 in her account, she's paying a ridiculous monthly fee (I think it's $12 or so, I'd have to check) to maintain her account. Why not just keep your cash at home or open an account at an online bank or somewhere else where there's no minimum balance? There are certainly plenty of options out there.
February 16th, 2020 at 01:30 am 1581816634
February 16th, 2020 at 01:48 am 1581817710
I have no doubt that there are a lot of people out there paying a monthly fee for not maintaining whatever minimum balance their account requires. I just wonder why folks would do that when there are alternatives that don't charge those fees.
February 16th, 2020 at 02:25 am 1581819916
February 16th, 2020 at 02:55 pm 1581864923
February 16th, 2020 at 04:06 pm 1581869199
I hesitated to comment because didn't want to pile on. I offer in the tone of Wink's last comment, it opens up a conversation.
February 16th, 2020 at 06:34 pm 1581878099
February 16th, 2020 at 08:12 pm 1581883946
I didn't read your post as being judgmental. We have friends who are "skating on the edge" with their finances not because they don't have decent salaries or pensions, but because they have made what I consider questionable choices.
February 17th, 2020 at 12:32 am 1581899539
February 17th, 2020 at 05:31 pm 1581960666
February 17th, 2020 at 06:23 pm 1581963834
I think it's a positive thing that your daughter evaluates others and compares. Of course at age 24, she won't be spot on because she doesn't have the life experience. At age 24 I thought that people living in fancy houses and driving luxury cars were wealthy. At my advanced age today, I know that they're likely financially over-extended. But she's thinking about it and that'll serve her well.
I also think it's great that she talks to you about her observations. It gives you the opportunity to make points to her (like the $400 emergency) that'll stay with her. In my family financial talk was taboo - I'm trying to change that with my kids. I welcome the times they start the conversation, no matter how accurate their views are.
February 19th, 2020 at 06:46 pm 1582138010
February 22nd, 2020 at 02:27 pm 1582381658