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Lack Of Financial Knowledge In America After The Great Depression

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In 2008, an enormous global financial crash occurred impacting millions of people. The financial crash was the worst financial crash after the Great Depression of 1930. Children were left to work at low wages and they skipped school to support their families. Interestingly, the main causes for both depressions was people’s lack of knowledge and understanding of how finance affects everybody. Becoming financially literate can allow people to be more prosperous in the future by saving more money and helps reduce the chances of falling into a downward spiral. Financial knowledge is the ability to understand how money works around the world. Having the proper knowledge can lead people to save more money and make smarter decisions. Today, Americans are $900 billion dollars into debt. The cause of this debt is buying more items than one can pay for. In society, we have to understand that money is a valuable resource that can work for or against us. Having the correct financial knowledge can allow people to make smart decisions such as investing in the stock market to generate yield for many years, having few credit cards, paying down mortgages quicker, or buying cheaper clothes instead of branded clothes. All of the examples given incorporate the idea of saving. It is important to save money for the future when the economy is steady before it collapses. …show more content…

Everything was given to me until I started getting $10 allowances weekly and I was told to spend reasonably and smartly. As I got older and entered my teenage years, I began to see the cost of everything started increasing. The cost of my clothes and education rose slowly until I had to start paying for everything myself except the essentials. Now I understand the importance of saving money because now I can buy books and clothes with correct judgment instead of wasting money on items that are not a

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When I am saving money I have to think about how much I willing to spend this month in order to save the gross amount of money. That is taking in account the money you would normally spend on extracurricular activities and determining what you can and cannot spend money on this month. Another important aspect is your credit card, and what you buy with it, and deciding if it’s worth the interest that comes along with it. When getting an auto loan you may think you're spending an easy $300 bucks a month on your car payment there’s an extra 5% added to the $300 called interest. Interest can turn your most inexpensive payment into the most expensive.

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Many people did not save because they had jobs that paid little, and all the money they made barely made it so that they could pay all the needs they needed to live for. On document 2 (DBQ) it states that “a regular saving of fifteen dollars a month” can help you in the long run, “at the end of twenty

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The exciting and prosperous decade of the 1920s suddenly ended when the world faced a severe economic crisis known as the Great Depression. Most men were unaware of the upcoming crash of the economy and were left penniless. What led up to this catastrophe that not only affected our country but the world, globally? After the 1920’s many people began thinking they could get rich easily by buying stocks. This was the beginning of many unexpected problems such as stock market speculation, the failure of many banks, and the problem of overproduction and underconsumption.

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In 1929, the stock market crashed, bringing economic devastation to all of America, and much of Europe. Many Americans were jobless and homeless, causing many problems all throughout America. The American citizens and people frantically tried to create coping methods fro life in poverty, and did what they had to survive, as our government was working to improve life for the American citizen. These fateful years would later be known as, “The Great Depression”, the greatest economic crisis in American History.

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Yes, concerns about major social and political revolution were justified at the time of the Great Depression. After the stock market crashed, banks failed as well as a result of millions of Americans withdrawing their money. Unemployment ensued because of the rapid decrease of consumer spending. These all mostly affected the working class, since they were the ones who went out of work when the Depression hit. Additionally, the big disparity of wealth between the rich and poor encouraged the Depression; 32% of the country’s wealth went to the richest 5% of people, while only 10% when to the poorest 42%.

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This dark time in history began with the collapse of the stock market in October of 1929. Wall Street became unstable and in turn wiped out millions of investors, which caused the United States to fall into the longest and deepest economic crisis in its history. Although the stock market crash of 1929 started the chain of events, other events also fueled its decline. First, firms in America earned record profits during the 1920s and reinvested much of those funds into expansion. By 1929, companies had expanded to the “bubble point”.

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There are three main parts that are a part of the Aztec world which are “the earth world on which humans lived, an underworld which belonged to the dead and the upper plane in the sky.” The earth and the underworld were both open for humans to enter, whereas the upper plane in the sky was impenetrable to humans. The Aztec underworld was knowns as Mictlan, meaning place of death. As the sun was believed to dwell in the underworld at night to rise reborn in the morning, and the maize kernels were entered later to sprout anew, so the human and divine existence was envisioned as being cyclical. The upper and nether worlds were both thought to be layered so Mictlan had nine layers which were inhabited by different deities and mythical beings.

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Taught in school rooms and passed down through various family members, dark tales of the Great Depression continue to haunt the history of our nation. Following the principle, “Necessity is the mother of invention,” men in the Great Depression era took it upon themselves to restore currency value by altering the faces of nickels and trading them for basic necessities. From 1929 to 1981 many once successful men lost their jobs and had to scrounge for work (“What” 1). Starting in 1929, the Great Depression began with the crash of Wall Street. Unemployment rates sat comfortably at 3.2 percent in 1929 but other great misfortunes sent them skyrocketing to an all-time high of 24.9 percent in 1933 .

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Financial fears have grown increasingly common in our society. It seems that the pile of bills on the kitchen table continues to grow as the money in our wallets continues to shrink. Everyday there are those who are unable to sleep because the fear of not being able to make ends meet gnaws at them. Research shows that financial fears have become some of the most prominent fears in America. But why is this the case?

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“How am I going to save my money if I can’t go a month without being short on cash?” Is this the question you ask yourself every now and then? Why is saving money that much difficult for you? Saving money needs a hell lot of self-control and self-control is challenging. Not only that, saving is a habit and habits take time and effort to form.

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