[morepedantic]

Sometimes there is an income problem. Sometimes there is a spending problem. And sometimes there is a cost problem. But cost is unlike the others, because income and spending are individual, but cost is universal.

Inflation from 2020-2024 was absurdly high. This was a universal hit to cost, and everyone felt it.

But outside of that recency bias, Americans have poor financial literacy. Americans have spending problems: credit card debt, car loans, and student loans come to mind. Each of these debt categories aren't inherently bad. Student loans are great if the degree has earning potential, but most Americans don't seek those degrees. Car loans aren't bad if it's a practical and affordable vehicles, but Americans like luxury SUVs. Credit cards aren't bad if you buy a washing machine to save on laundromat visits, but Americans like expensive vacations.

Americans also have problems with income, but that's even more complicated.

[disgruntledphd2]

> Americans have poor financial literacy. Americans have spending problems: credit card debt, car loans, and student loans come to mind.

Sure, but I'm not American and we have none of those debts. It's mostly housing/bills and childcare that screw us.

[morepedantic]

That may be, but this is the internet. Everyone is an American, didn't you know?