6 Money Problems That Didn’t Exist 50 Years Ago
6 Money Problems That Didn’t Exist 50 Years Ago
Cynthia Measom Mon, July 19, 2021
For consumers today, America is much, much different than it was 50 years ago in the 1970s. For example, you can buy almost anything you want or need from your phone with easy monthly payments, the cost of child care can decimate your paycheck and if you take out student loans to pay for college, you can financially cripple yourself for decades after you enter the workforce.
If you are like most people, you use technology throughout each day, which means that you are likely constantly bombarded by various ads, videos, emails and text messages that are designed to influence you to spend money. And if you make a habit of taking the bait, you can create a whole host of additional issues for yourself -- from identity theft to fully utilized credit card limits.
Here's a look at six financial woes that people didn't have to worry about 50 years ago.
Fraud and Identity Theft
Carter Seuthe, CEO of Credit Summit, believes that fraud and identity theft as a means to open new accounts is one of the biggest money problems people have today that didn't exist 50 years ago.
"Obviously, these things have existed for as long as people have had bank accounts, but it was much harder to pull off once banks and creditors began requiring multiple forms of ID," Seuthe said. "Now, an unsafe internet connection can get all of your account information skimmed by someone who invests in $5 of hardware. They can use your identity to open credit accounts, steal money, and commit widespread fraud in a matter of minutes."
Credit Card Debt
In the 1970s, only about half of American families had one or more credit cards, and the most common type was retail store cards, according to a report from the Federal Reserve. Today, according to the Fed, almost 8 in 10 adults have at least one credit card, which can add up to tons of credit card debt.
"Americans have a long-standing love affair with their credit cards," said Lauren Anastasio, CFP at SoFi. "Credit cards have become increasingly popular and the norm for spending money. [...] Depending on the type of credit card you have, people are more incentivized today by rewards points that you can cash in for things like travel, airfare or cash back -- making it easier to overspend without realizing it."
Overall Higher Cost of Living
Jeremy Britton, financial advisor and CFO of BostonCoin, pointed out that the overall cost of living is more of a concern now than it was in the past.
"Fifty years ago, it was reasonable to expect a family to live on just one income (think the Waltons, Brady Bunch or even The Simpsons)," Britton said. "Nowadays we tend to have two partners working, and sometimes even a third job or side hustle, just to pay the mortgage or rent and normal household bills. Since the 1970s, the cost of goods and services has simply accelerated faster than wage growth, and income inequality is at its highest levels since before the 1929 Great Depression."
Online Impulse Purchasing
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https://finance.yahoo.com/news/6-money-problems-didn-t-220059873.html