Question : How does personal finance affect the economy?
how would personal finance on a personal level affect the US economy?
- asked by sioux4rose
All Answers:
Answer #1
People with bad personal finances are not able tomake as many purchases, spend as much money, orsave as much money. They get in debt, default onloans, and generally have a harder time managingmoney. They often do not save enough forretirement.Bad personal finance is bad for theeconomy overall.
- answered by David V
Answer #2
If you've watched the news in the last few days orweeks, you will have seen that there are a recordnumber of foreclosures on houses right now. Manypeople got in over their heads with ARM's or othertypes of creative financing on houses that theynow can't sell because the housing market has gonedown. Subprime lenders make loans to people withpoor credit, and rising defaults in those loanshave been a factor in the stock market'svolatility this past week.So, I'd say personalfinance can have an effect on the overall economy.
- answered by Faye H
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