Financial Struggles - Definition, Analogy, and Study Resources | Fiveable (2024)
Definition
Financial struggles refer to difficulties faced by an individual or government in managing their finances effectively, often resulting in debt or economic instability.
Analogy
Imagine having a part-time job while juggling schoolwork, social activities, and other expenses. Sometimes your income might not be enough to cover all your needs, leading you into financial struggles.
Related terms
National Debt: This term refers to the total amount of money owed by a country's government due to borrowing. High levels of national debt can strain an economy.
Taxation: Taxation involves levying charges on individuals or entities by a government to fund public services and meet financial obligations. It can play a significant role in addressing financial struggles.
Deficit Spending: Deficit spending occurs when a government spends more money than it collects in revenue. It often leads to increased borrowing and adds to financial struggles.
an inability to meet payments out of disposable income or at all. Examples include: non-payments of essential bills. having to borrow further to repay existing debts. a borrower only being able to make payments by selling assets.
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
Only 48% of Americans have enough emergency savings to cover at least three months' worth of expenses, as of May 2023. 22% have no emergency savings at all. Americans' debt is piling up. 36% of U.S. adults have more credit card debt than emergency savings, as of January 2023, the highest percentage since 2011.
One big culprit fueling financial anxiety is a familiar one — the high cost of living. More than half of respondents (54%) expect price pressures to increase this year, and only 9% said their household income was outpacing inflation.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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