Personal finance : an encyclopedia of modern money management.

Abstract

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like,” according to Will Rogers, a historic American actor. Although Will Rogers lived a century ago, his words ring true today. This quote identifies common maladies present in today’s society: lack of individual money sense, excess consumption, and spending for others’ benefit. Personal Finance: An Encyclopedia of Modern Money Management is a crucial resource for today’s society. There is a greater divide between the rich and poor, our society is depending on debt to finance an advertiser-influenced lifestyle, and families are working twice as hard for the same inflation-adjusted pay as they earned in 1987. By increasing financial literacy and information, this declining financial trend can be reversed. Abundant research supports the worsening financial picture of Americans today. Our financial strength is weakening. According to a September 10, 2012, article by Rich Morin and Seth Motel, “A Third of Americans Now Say They Are in the Lower Classes.” In a survey of 2,508 adults by the Pew Research Center during the 2008 to 2012 time period, the percentage of Americans indicating they are in the lower-middle or lower class has risen from one fourth to one third. The younger than age 30 poor are growing more quickly than other age groups. Thirty-nine percent of adults ages 18 to 29 consider themselves lower class. This is a 14 percent increase since 2008. The lower-class Caucasian and Hispanic percentages are also growing faster. Not only are the number of poor growing, but the lower class also see their future prospects in a bleak light. Our financial lives have changed drastically during the last 25 years. Many of these financial changes are for the worse.