Economy Why are Americans so terrible with money?

The financial challenges of high household debt and living paycheck to paycheck observed in the United States are also prevalent in other Western democracies like Canada and the United Kingdom.

🇨🇦 Canada​

  • Living Paycheck to Paycheck: A significant portion of Canadians are experiencing financial strain. A survey by H&R Block Canada in April 2025 revealed that 85% of Canadians feel that living paycheck to paycheck is the new norm, up from 60% the previous year. Additionally, 74% worry they're not saving enough, and 81% are concerned their income isn't keeping pace with the cost of living.
  • Household Debt: Canada's household debt levels are notably high. As of the third quarter of 2024, the household credit market debt reached $2.99 trillion, with a debt-to-disposable income ratio of 173.1%. This means that for every dollar of disposable income, Canadians owed $1.73 in credit market debt.
  • Debt Servicing: The household debt service ratio, which measures the proportion of income used to service debt, stood at 14.72% in the third quarter of 2024. This indicates that a significant portion of household income is dedicated to debt repayments.

🇬🇧 United Kingdom​

  • Financial Strain: Many UK residents are also facing financial difficulties. A YouGov survey from late 2024 found that only 30% of Britons felt financially comfortable, while 44% could cover essentials but had little left over, and 24% often struggled to make ends meet.
  • Household Debt: The average total debt per UK household, including mortgages, was £65,143 in April 2024. This represents approximately 97% of average earnings. Credit card debt averaged £2,471 per household.
  • Debt-to-Income Ratio: The UK's household debt-to-income ratio was 118.1% in the fourth quarter of 2024, indicating that households owed £1.18 for every £1 of disposable income.

Comparative Overview​

MetricUnited StatesCanadaUnited Kingdom
Living Paycheck to Paycheck~60%85% feel it's the norm24% often struggle
Household Debt-to-Income Ratio~73%173.1%118.1%
Average Household DebtData varies$2.99 trillion total£65,143 per household

While the United States faces significant financial challenges among its population, similar issues are evident in Canada and the United Kingdom. High household debt levels and the prevalence of living paycheck to paycheck are common concerns, influenced by factors such as rising living costs, housing expenses, and interest rates.
 
Crazy Source said:
Says the guy that has never sniffed marriage, let alone lived it. Yeah, buddy, it's women's fault. You really suck at every subject here.
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nice try but I was married for 11 years and I am right. Why do you think nearly every store in every mall selling useless consumer products is geared towards women.
 
Lycandroid said:
nice try but I was married for 11 years and I am right. Why do you think nearly every store in every mall selling useless consumer products is geared towards women.
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Ever been to Bass Pro Shops? Those assholes will give you a credit line without asking for it. I get it. Women have a special kind of stupid. I'm just saying that we are plenty stupid, and have no right to perch on our recliner and cast aspersions to anyone, especially people we are trying to have sex with.
 
Strychnine said:
Has Trump directly called for the raising of taxes on the 1% since attaining the office?
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Did you catch that bone that Trump sent signaling he might raise taxes on the wealthy? It boggles my mind that idiots thought you could gut the gov't to pay for these things. Wasteful spending, they said. Never mind that many of those programs benefitted Americans and those abroad, our allies.
 
Hooked on buying and hoarding junk. It’s ingrained in society.
 
fedorthegoat777 said:
Greed
Materialism
lack of self control
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That, certainly has been credited to people's demise, but it's not like society isn't set up that way. If you are a decent student, you go to college. Then you pop out after 4 years and get a job that you probably think you are lucky to get. You aren't lucky. It was planned. So, you are grinding it out for a bit less than you had planned on, but you are still good. There is no money leftover to live on after the rent, plus you have around $80k in debt. You are 23. Here comes your bank wanting to lend you a fat credit card with a $50k limit. You're still young, and feel invincible. So then you take a vacation after you haven't taken one in 2 years. That $80k debt, after 2 years, is only down to $60k. At this rate you will be owing the man for the rest of your life. That is the point. It's not a glitch. Make you dependent. It's their plan. My $0.02.
 
Renard said:
Some of it is "fuck it" spending. For example gen Z feels, and not without cause, that they'll never be able to afford big purchases like a house. In the US it's a little more possible, but in Canada the housing market is completely fucked. Since they figure they'll be in apartments forever, they might as well buy the Hermès handbag or w/e.
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There's nothing new about. That's just being a dumbass. Dumbasses have always existed.
 
I thought it would be more than that relative to the population
 
Crazy Source said:
That, certainly has been credited to people's demise, but it's not like society isn't set up that way. If you are a decent student, you go to college. Then you pop out after 4 years and get a job that you probably think you are lucky to get. You aren't lucky. It was planned. So, you are grinding it out for a bit less than you had planned on, but you are still good. There is no money leftover to live on after the rent, plus you have around $80k in debt. You are 23. Here comes your bank wanting to lend you a fat credit card with a $50k limit. You're still young, and feel invincible. So then you take a vacation after you haven't taken one in 2 years. That $80k debt, after 2 years, is only down to $60k. At this rate you will be owing the man for the rest of your life. That is the point. It's not a glitch. Make you dependent. It's their plan. My $0.02.
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it really is, i had a buddy who was renting for 2 grand or whatever and said, "it'll cost almost the same buying a house" I said, "you don't think they know that?". People are stupid really. I don't get how mouthy and boorish people are and yet the buckle under so many thumbs in their lives. If they were really serious about the shit they'd never end up where they were, so, just hot air I guess.
 
People trick themselves into thinking they’ll pay off their credit card in a timely fashion but it just accumulates and bleeds over onto multiple cards and loans
 
I Am Legion said:
It's an entitlement thing. Everyone believes they "deserve" things even when they can't afford it. Look at college debt. Look at everyone driving new cars. Where are the junkers we grew up with? Look at cruise ships filled with people on food stamps.
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Education is important, the rest of that shit isn't.

The rampant profiteering on 18yo Americans is the issue with college.

American kids can rack up 6 figure debt, and do porn before they can drink beer.

Just seems like to much freedom to me.
 
Neph said:
Everyone is shit with money, it’s not just an American thing. Australians are shit with money too.
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Aussies are no better but our political parties actually help us.

That's why or median net wealth is so much higher than Americans, while the average wealth is about the same.

America is a more productive nation, but it fuck over most Americans. Aussies are less productive but vastly better off despite it.
 
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