Are most Americans truly incapable of budget adjustments on their own?
By AidaLily
@AidaLily (1450)
United States
January 13, 2013 9:06am CST
I am asking this question after being rudely awakened today at seven-thirty in the morning by a screaming and hysterical client of mine. After spending twenty minutes on the phone with them, I just told them to come over at 8:30 and we would go over their budget and paycheck. I proceeded to get up, feed my children breakfast, and then waited for them to show up.
This client on average grosses roughly $800 as do most of my clients on a biweekly pay schedule. They come in and they are freaking out. They don't understand why their paycheck is lower and they are blaming the tax rates and all of that asking me to go over them and redo their paycheck (as in redo all the payroll taxes and more).
I did them all and still found she got the correct amount and so she asked me to do them again paying me for another hour to do so. I don't mind the extra $20 but I wish my clients had some knowledge of different things. Last month was the holiday month and so I asked her, once I finished with the correct numbers a second time, "Did you have any money schedule out or leave work early on any days?"
Her answer: Oh yeah I had to leave work when we had that bad snowfall and the power outages.
If accounting wasn't my passion, I think I would have just started to bang my head off my dining room table. I helped her fix her budget again and she went on her way.
My question is do most americans not know how to tailor their budget to fit even the slightest change or well pay attention to their paychecks that often? Are their more people out there who are freaking out about this? I've heard the 2% rise in social security taxes is to blame for the sudden confusion but most of us went to school and learned basic math so people should be able to figure out 6.2% of XX amount of dollars easily. I know when I started helping people with these a few years ago people were in shock that they are taxed only on their gross income and that number stays the same.
So if you gross $800 then your taxes are 6.2% of $800, 1.45% of 800 and it goes on varying by state.
Do you feel that you can't figure out your budget properly or adjust as necessary? Any thoughts on the many people who can't vs the people who can? Can the majority Americans really not handle having extra money?
5 responses
@LaDeBoheme (2004)
• United States
13 Jan 13
Budget? What does that word mean?
I'm kidding.
It isn't really funny, it's pitiful. I personally know people who I firmly believe have no clue or concept on what a budget is. They don't even live paycheck to paycheck because they spend the money on frivolous things as soon as they cash the check with no regard for future or upcoming expenses. I have asked them questions like what are you going to do about your rent and they will answer that's not due until next week or some such crap.
I understand your frustration, because I also cannot, for the life of me, understand people's reasoning or total lack of common sense. Do they adopt this cavalier attitude because so many Americans were given everything they wanted when they were growing up? Are parents really doing their child any favors by giving them expensive laptops, game consoles, smartphones?
Not every American was brought up that way. Some Americans can and do budget and plan for the future. But those who can't or won't and constantly cry the financial blues are doomed to remain in debt for the rest of their lives and blame their woes on everyone and everything else. No sympathy here for the careless and stupid.
I'm kidding.
It isn't really funny, it's pitiful. I personally know people who I firmly believe have no clue or concept on what a budget is. They don't even live paycheck to paycheck because they spend the money on frivolous things as soon as they cash the check with no regard for future or upcoming expenses. I have asked them questions like what are you going to do about your rent and they will answer that's not due until next week or some such crap.
I understand your frustration, because I also cannot, for the life of me, understand people's reasoning or total lack of common sense. Do they adopt this cavalier attitude because so many Americans were given everything they wanted when they were growing up? Are parents really doing their child any favors by giving them expensive laptops, game consoles, smartphones?
Not every American was brought up that way. Some Americans can and do budget and plan for the future. But those who can't or won't and constantly cry the financial blues are doomed to remain in debt for the rest of their lives and blame their woes on everyone and everything else. No sympathy here for the careless and stupid.1 person likes this
@AidaLily (1450)
• United States
13 Jan 13
I am smiling at the joke but you are right. It would be funny if it wasn't so sad. I will have some debt when I graduate college but I am already budgeting and paying what I can on it now. I don't even budget with the amount my husband and I usually get every month. I budget with less so we can save up for any future expenses or emergencies.
I get frustrated with these people because I do think they were spoiled or it just never really crossed their mind to save. I am going to be an accountant and I love my work. I really do. When I am working on the numbers, it is like I am not working at all because I love it.
It is the people. I mean she really woke me up early in the morning today freaking out about it. It isn't like I charge people a lot for this just $10/hour. While I enjoy have the extra money, this is kind of ridiculous.
I don't have sympathy for them, but I just can't help thinking 'Are you really this bad with money? Should you even have money if you are this bad with it?'. I do have non-frustrating clientele though and so that makes me happy.
1 person likes this
@LaDeBoheme (2004)
• United States
14 Jan 13
Yeah, I said my friend wasn't stupid, but maybe I should rephrase that. After all, it's her name too on those tax forms, those bounced mortgage checks, those unpaid utility bills. Can't be doing a whole lot good for her credit score either.
But like I said, sometimes I just have to walk away to avoid saying something I will regret.
1 person likes this
@AidaLily (1450)
• United States
13 Jan 13
Well I am still a student about to complete my associates degree before going for my bachelor's.
I currently help people in filling out tax forms, budgeting, financial statement analysis for those thinking of investing in certain companies, payroll, help with college forms and FAFSA, minor financial consulting, helping with real estate for those starting small businesses by calling places and assessing property as in how much they would need for maintenance fees and other things.
I am sure I would charge more in a firm for the clientele the firm has and according to the firm's own accounting payment scale, but as far as my freelancing I want to help people who otherwise can't afford an accountant. That is why I have very inexpensive services. I like helping people with their finances. :)
And your friend needs to ask for a divorce. I am not trying to be a bad person in saying that but it seems like her husband is too immature to realize that a retirement account is not a savings account you can just tap into, not pay taxes on, and buy whatever you want. That is why there are savings accounts and sometimes main and reserve checking depending on the bank to save up for these purchases.
1 person likes this
@randylovesdar (4932)
• United States
14 Jan 13
I know Randy and I are struggling because he is only getting Social Security and very little from the Veterans. I have not been able to find work because of a tough economy and I am in college (working towards my second Master's Degree). I have applied for many jobs, but all I get is well we are not hiring or I am overqualified because I have a high degree. I do not have any credit cards which is great, but I do have other bills to pay such as car insurance, life insurance and rent on the trailer. My brother lives with us and pays the household bills. We split the cost of food. I budget the best I can which is hard, but I manage. I am hoping to start my online business in late March or early April in hopes to bring in some extra money. I want to better my life in hopes we can get a bigger place (right now we have a two bedroom trailer and we want a three bedroom).
I used to help my late mother-in-law with her budget and it was very hard to budget because she was living on social security and also paid a lot of money for doctor's and for medications and there were months when she had to choose between buying food or buying her medication. Before we got married my late mother-in-law lived with Randy and he paid all the bills which was hard to do when he was working two jobs and taking care of his mom. After we started dating I took care of his mom while he worked two jobs.
1 person likes this
@bobmnu (8157)
• United States
21 Jan 13
When you listen to people talk about money, taxes and sending you understand why we are in such trouble personally and as a country. One lady claimed that she paid Federal Income Tax. When asked how much was withheld during the year and she replied that she paid $1200. The next question was how much did you get back when she filed her taxes she replied she received $3800 (she was eligible for the earned income tax credit). When people tried to explain that she received more back than was withheld she said but I paid $1200 in income tax. You could not convince her that she got more back than she paid in and therefore she did not pay any taxes.
With holding tax is said to be one of the greatest things to encourage big government spending. People do not know what they are paying in taxes. Ask someone how much they made last week or month and they will tell you what their net pay check was but most can not tell you what their gross pay is.
@Hatley (163781)
• Garden Grove, California
20 Jan 13
hi AidaLily Most Americans, I hate that and will say instead some Americans do not adjust their budgets.Labeling Americans is not going to change some who are spend thrifts and cannot make their pay checks stretch to cover expenses. I can and do budget mine as its a pretty tiny budge consisting of just what is left after The Admins here at Gold Crest takes out the monthly rent and board bill. I mylot and it helps me to pay my cable bill by cutting it in half so that I only have take half as much out of my steady income. Yes I would say most American can and do budget so they can make ends meet monthly.My God if I had a gross of 800 a week I would consider myself rich and bank
most of it.
most of it.@AidaLily (1450)
• United States
20 Jan 13
Alright I will say SOME Americans.
One of my clients that came just this past Thursday was crying and screaming about how is she going to be able to live from now on.
Well she came over hysterical because her paycheck was $40 less. Mind you this does not affect her budget at all. She still has over $500 a month after all of her bills.
It took me over an hour to explain to her that she would be fine, her budget doesn't need to be changed and she can still afford everything she pays for. However, she didn't seem to understand that she could do this. I don't mind because well I am still getting paid for my work but it would be nice if some people stopped and paid attention.
@cupkitties (7421)
• United States
13 Jan 13
I can't speak for the rest of America, but I can and do handle my own budget same as everyone else that I know. I really don't think its that big of a feat.
One exception being my dad. He's a blind spender, especially when it comes to his grandchildren.
Its a good thing my step mom controls the purse strings or they'd be in the hole.
1 person likes this
@AidaLily (1450)
• United States
13 Jan 13
I am helping a friend and they are a huge impulse buyer especially if they see something on sale. I mean they could already have the item in their house and plenty of it but it is on sale so they buy it.
I budget all of my household expenses and more for my family so it is a bit of a surprise how many people can't or wont do it.
Yeah good thing she helps control it.
1 person likes this
