Tag Archives: Saving

Reversing the American trend of borrowing and spending too much

Average college debt is now up to $35,000 and usually for a useless non-STEM degree
Average debt is now up to $35,000, often for a useless non-STEM degree

First, the problem, using this article from New Zealand. It is authored by a self-made millionaire to young people.

Excerpt:

A young property tycoon has hit out at Generation Y claiming they need to stop travelling and spending money on overpriced food if they want to save for their first home.

Tim Gurner, 35, is worth nearly half a billion dollars since buying his first investment property at the age of 19.

The Melbourne millionaire believes it’s time his generation change their spending and lifestyle habits.

“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” he told Channel Nine’s 60 Minutes program.

“We’re at a point now where the expectations of younger people are very, very high. They want to eat out every day, they want travel to Europe every year.

“This generation is watching the Kardashians and thinking that’s normal – thinking owning a Bentley is normal.”

And how did the millennials respond? With immature, ignorant rebellion:

Gurner’s comments have been met with a backlash on social media will many criticising how he started out in the property – with a loan from his grandfather.

One social media comment read: “Maybe the new home buyers would stand more of a chance if they were given 34K by their grandad… that’s a fair few smashed avos.’

Another added: ‘Nice if you can get it,’ while one commented: ‘Much like Trump’s dad gave him a “small loan of $1Mil.’

Of course, the average college graduate HAS actually borrowed that much money (see graphic above), but they just preferred to blow it all on alcohol, birth control and a degree in English literature.

Speaking of a degree in English literature…

This woman complained to her boss because she wasn’t making enough money. She graduated with a non-STEM degree (English literature), and lives in one of the most expensive cities in America. (The cities that are all run by leftist Democrats who love to spend money on public works and welfare). She didn’t even have roommates to split the rent!

I see this in so many young people – complete disregard for the future in order to have fun, thrills and frivolous travel right now. And all their same-age friends support their decision-making. Young people don’t listen to grown-ups who have experience and real achievements. They listen to their friends. I know one woman who literally flew off to be a missionary in Europe for two years, on the advice of two Christian students, neither of which had ever worked a full-time job or saved money. They were proudly living off their parent’s incomes into their late-20s, and she looked to them for advice on education, career and finances.

Low-income earners can still save money

You don’t have to have a great job to make choices that lead to growing your wealth.

Here is an article from Business Insider about how to build wealth on a minimum wage salary.

Excerpt:

Here are the key expenses that someone on minimum wage can consider cutting, to make an immediate impact:

  • Moving to a more affordable city can cut living expenses considerably. It’s hard to accumulate wealth in Manhattan or San Francisco, but is much more likely in Buffalo or Memphis.
  • Eliminate commuting. Cars are expensive, and it is possible to get a place close enough to work to bike.
  • Cut some wires, particularly cable. After all, it’s 2017 – just go with internet and Netflix.
  • Don’t eat out, unless it’s absolutely necessary.
  • Skip most purchases of new clothes. Instead, make thrift stores your new best friend, and don’t be afraid to mend holes in clothing.
  • Cut expensive activities, and rediscover that the best things in life are free. Playing many sports can be free (or cheap), and public libraries are free (or cheap).

Once that’s done – it’s all about investing in yourself.

The Obama administration set interest rates low for the last eight years, encouraging people to borrow more and more money – money that they could not pay back. Thankfully, the private sector has ways of encouraging people to save money.

This article is from the far-left The Atlantic.

Excerpt:

Late last summer, Dawn Paquin started keeping her money on a prepaid debit card from Walmart instead of in a traditional checking account. The wages from her factory job—she works from 9 p.m. to 5 a.m., inspecting blades on industrial bread-slicing machines—now go directly onto the Visa-branded card, which she can use like a regular debit card, though unlike most debit cards, it is not linked to a checking or savings account.

[…]The card is more convenient, Paquin said, and she doesn’t have to worry about monthly statements; she tracks her money, and pays all her bills, with the card’s associated phone app.

[…]In a 2015 Federal Reserve Board survey, 46 percent of respondents reported that they would have trouble coming up with $400 in an emergency; living paycheck to paycheck is now a commonplace middle-class experience. So while Paquin noticed that her Walmart MoneyCard app asked her from time to time whether she wanted to “stash” some money, she didn’t bother to figure out what that actually meant, let alone respond.

Then, late last year, she got an email saying that a “prize savings” feature had been added to her card. If she kept some of her balance in a virtual “vault,” meaning that it would not show up in her available funds, she would be eligible to win a cash prize in a monthly drawing—up to $1,000. Every dollar in the MoneyCard Vault would equal an entry in that month’s drawing. This caught her interest. A prize would go a long way toward her being able to buy a car. It also made her focus on what all those “stash” requests were about. “Oh, cool, this can work as a savings account, too,” she remembers realizing. So when she got paid, she started setting aside “10 bucks, 20 bucks, whatever I could.”’

[…]The program was launched to a limited number of MoneyCard holders in August, offering 500 prizes a month—one for $1,000, the rest $25 each. In December, the company reported that the number of Vault users had grown more than 130 percent, to more than 100,000, and that the average savings had grown from $413 to $572, a 38 percent increase.

Paquin actually did end up winning the $1000 prize for stashing some of her earnings. And she saved most of it, of course. Because she learned from the incentives.

Can blacks and Hispanics blame their troubles on racism by whites?

Does government provide incentives for people to get married?
The success of children is due to their parents’ choices, not from outside racism

If the underperformance of blacks and Hispanics in America were caused by racism by whites, then it follows that Asian-Americans would be underperforming as well. But Asian-Americans are outperforming whites. Let’s look at three reasons why, and see if blacks and Hispanics can learn how to succeed by looking at the Asian example.

Here is the summary of this post:

  1. Asian Americans marry before they have children
  2. Asian Americans save more of what they earn
  3. Asian Americans monitor their children’s educational progress

Now let’s take a look at each of these in order.

Asians marry before they have children, so the kids have two parents
Asians marry before they have children, so the kids have two parents

1. Asian Americans marry before they have children

This article is from Family Studies.

It says:

Eight in ten Asian-American kids live with married birth parents, compared with about seven in ten European-American kids, five in ten Hispanic-American kids, and only about three in ten African-American kids. Half of black children live with their mothers only, compared to three in ten Hispanic children, less than two in ten white children and less than one in ten Asian children.

Naturally, children who have two parents to look after them do better, because one parent alone cannot work and do household chores and monitor the children as easily as two parents can. The decision about whether to have sex before marriage is entirely under the control of the grown-ups. It cannot be blamed on racism, poverty and other non-moral pre-occupations of the secular left. Marriage is a moral issue, and Asian-Americans do the moral thing, and marry before they have children.

Asian household wealth set to surpass whites
Asian household wealth set to surpass whites

2. Asian Americans save more of what they earn

This article from CNN Money explains:

Asians have had higher median incomes than their white counterparts, according to a new study by the Federal Reserve Bank of St. Louis. The typical Asian family has brought home more money for most of the past two decades.

[…][Asians] will surpass whites in net worth in the next decade or two, Fed researchers said.

[…]In 1989, the median Asian family had about half the net worth of its white peer. By 2013, they had more than two-thirds.

The gap between whites and blacks and Hispanics, meanwhile, remained little changed over that time period.

Asians have similar financial habits to whites, in terms of investing and borrowing. Both groups are more likely than blacks and Hispanics to invest in stocks and privately-owned businesses and to have more liquid assets, which serves as a buffer against financial shocks. And, on average, the former have about half as much debt as the later.

As a result, Asians and whites have more financial stability than blacks and Hispanics, which also allows the former to build more wealth.

Everyone has to earn and save money, but in some cultures, it becomes normal to not save part of what you earn. That needs to stop. But it has nothing to do with discrimination due to skin color. In Asian culture, there is no glorification of consumer spending on sparkles, bling and other ostentatious wealth. Asians don’t want to appear to be wealthy, they want to actually be wealthy – by saving money.

Composite SAT scores by race and income levels
Composite SAT scores by race and income levels: Asians outperform at every income level

3. Asian Americans monitor their children’s educational progress

This article from Investors Business Daily explains how Asian parents don’t just make demands on their kids to learn, they actively monitor their progress and talk to their kids’ teachers:

Asian-American parents tend to oversee their children’s homework, hold them accountable for grades and demand hard work as the ticket to a better life. And it pays off: Their children are soaring academically.

[…]As a group, Americans need to take a page from the Asian parents’ playbook. American teens rank a dismal 28th in math and science knowledge, compared with teens in other countries, even poor countries.

Singapore, Hong Kong, South Korea, Japan and Taiwan are at the top. We’ve slumped. For the first time in 25 years, U.S. scores on the main test for elementary and middle school education (NAEP) fell. And SAT scores for college-bound students dropped significantly.

[…]Many [Asian students]from poor or immigrant families, but they outscore all other students by large margins on both tests, and their lead keeps widening.

In New York City, where Asian-Americans make up 13% of overall students, they win more than 50% of the coveted places each year at the city’s eight selective public high schools, such as Bronx Science and Stuyvesant.

What’s at work here? It’s not a difference in IQ. It’s parenting. That’s confirmed by sociologists from City University of New York and the University of Michigan. Their study showed that parental oversight enabled Asian-American students to far outperform the others.

No wonder many successful charter schools require parents to sign a contract that they will supervise their children’s homework and inculcate a work ethic.

You can see an updated image with the latest scores here.

It’s not enough to just outsource the education of your children to a bunch of non-STEM education-degree-holding teachers. Teachers can be good, and some work very hard. But the Democrat teacher unions prevent the firing of teachers who underperform. This is especially true in non-right-to-work states (Democrat states). So, you cannot depend on teachers to educate your children, and Asian parents don’t. That’s why their kids learn. Performance of children in school is not affected by discrimination against skin color, it’s affected by the level of involvement of parents.

Conclusion

We have learned that the success of Asian-Americans in America is all earned. And this proves that there is no such thing as “racism” that holds back non-whites. If blacks and Hispanics imitated the behaviors of Asians (not whites, but Asians), then they would achieve just as well as Asians do. It’s not a race problem, it’s a behavior problem. It’s not a “racism” problem, it’s a behavior problem. It’s an us problem, it’s not a them problem.

Can blacks and Hispanics blame their troubles on racism by whites?

Does government provide incentives for people to get married?
The success of children is due to their parents’ choices, not from outside racism

If the underperformance of blacks and Hispanics in America were caused by racism by whites, then it follows that Asian-Americans would be underperforming as well. But Asian-Americans are outperforming whites. Let’s look at three reasons why, and see if blacks and Hispanics can learn how to succeed by looking at the Asian example.

Here is the summary of this post:

  1. Asian Americans marry before they have children
  2. Asian Americans save more of what they earn
  3. Asian Americans monitor their children’s educational progress

Now let’s take a look at each of these in order.

Asians marry before they have children, so the kids have two parents
Asians marry before they have children, so the kids have two parents

1. Asian Americans marry before they have children

This article is from Family Studies.

It says:

Eight in ten Asian-American kids live with married birth parents, compared with about seven in ten European-American kids, five in ten Hispanic-American kids, and only about three in ten African-American kids. Half of black children live with their mothers only, compared to three in ten Hispanic children, less than two in ten white children and less than one in ten Asian children.

Naturally, children who have two parents to look after them do better, because one parent alone cannot work and do household chores and monitor the children as easily as two parents can. The decision about whether to have sex before marriage is entirely under the control of the grown-ups. It cannot be blamed on racism, poverty and other non-moral pre-occupations of the secular left. Marriage is a moral issue, and Asian-Americans do the moral thing, and marry before they have children.

Asian household wealth set to surpass whites
Asian household wealth set to surpass whites

2. Asian Americans save more of what they earn

This article from CNN Money explains:

Asians have had higher median incomes than their white counterparts, according to a new study by the Federal Reserve Bank of St. Louis. The typical Asian family has brought home more money for most of the past two decades.

[…][Asians] will surpass whites in net worth in the next decade or two, Fed researchers said.

[…]In 1989, the median Asian family had about half the net worth of its white peer. By 2013, they had more than two-thirds.

The gap between whites and blacks and Hispanics, meanwhile, remained little changed over that time period.

Asians have similar financial habits to whites, in terms of investing and borrowing. Both groups are more likely than blacks and Hispanics to invest in stocks and privately-owned businesses and to have more liquid assets, which serves as a buffer against financial shocks. And, on average, the former have about half as much debt as the later.

As a result, Asians and whites have more financial stability than blacks and Hispanics, which also allows the former to build more wealth.

Everyone has to earn and save money, but in some cultures, it becomes normal to not save part of what you earn. That needs to stop. But it has nothing to do with discrimination due to skin color. In Asian culture, there is no glorification of consumer spending on sparkles, bling and other ostentatious wealth. Asians don’t want to appear to be wealthy, they want to actually be wealthy – by saving money.

Composite SAT scores by race and income levels
Composite SAT scores by race and income levels: Asians outperform at every income level

3. Asian Americans monitor their children’s educational progress

This article from Investors Business Daily explains how Asian parents don’t just make demands on their kids to learn, they actively monitor their progress and talk to their kids’ teachers:

Asian-American parents tend to oversee their children’s homework, hold them accountable for grades and demand hard work as the ticket to a better life. And it pays off: Their children are soaring academically.

[…]As a group, Americans need to take a page from the Asian parents’ playbook. American teens rank a dismal 28th in math and science knowledge, compared with teens in other countries, even poor countries.

Singapore, Hong Kong, South Korea, Japan and Taiwan are at the top. We’ve slumped. For the first time in 25 years, U.S. scores on the main test for elementary and middle school education (NAEP) fell. And SAT scores for college-bound students dropped significantly.

[…]Many [Asian students]from poor or immigrant families, but they outscore all other students by large margins on both tests, and their lead keeps widening.

In New York City, where Asian-Americans make up 13% of overall students, they win more than 50% of the coveted places each year at the city’s eight selective public high schools, such as Bronx Science and Stuyvesant.

What’s at work here? It’s not a difference in IQ. It’s parenting. That’s confirmed by sociologists from City University of New York and the University of Michigan. Their study showed that parental oversight enabled Asian-American students to far outperform the others.

No wonder many successful charter schools require parents to sign a contract that they will supervise their children’s homework and inculcate a work ethic.

You can see an updated image with the latest scores here.

It’s not enough to just outsource the education of your children to a bunch of non-STEM education-degree-holding teachers. Teachers can be good, and some work very hard. But the Democrat teacher unions prevent the firing of teachers who underperform. This is especially true in non-right-to-work states (Democrat states). So, you cannot depend on teachers to educate your children, and Asian parents don’t. That’s why their kids learn. Performance of children in school is not affected by discrimination against skin color, it’s affected by the level of involvement of parents.

Conclusion

We have learned that the success of Asian-Americans in America is all earned. And this proves that there is no such thing as “racism” that holds back non-whites. If blacks and Hispanics imitated the behaviors of Asians (not whites, but Asians), then they would achieve just as well as Asians do. It’s not a race problem, it’s a behavior problem. It’s not a “racism” problem, it’s a behavior problem. It’s an us problem, it’s not a them problem.