I WAS RECENTLY looking at one of those “whatever happened to” top 10 lists. In this case, it was about a select group of celebrities and their money—or lack thereof. The point of the list: All of these people, who had made millions, were broke or worse. Several had filed for bankruptcy more than once. Others were deep in debt and most owed hundreds of thousands to the IRS. One former star, who once earned several million dollars a year, had $5,000 in the bank.
How does that happen? I guess their celebrity status was no guarantee they’d be smart or act responsibly. In some cases, they were duped into poor investments. But the overriding cause of their woes was out-of-control spending, living lavishly during the peak of their stardom with little regard for the future.
Why should we care about these folks? They provide a good learning experience for us mortals, and especially young people who idolize these celebrities and their lifestyles.Overspending, ignoring future financial needs and not learning to manage money are common failures for many Americans. But why are we surprised? Formal financial education is very limited.
Source: Clueless – HumbleDollar
Clueless – HumbleDollar Why the lack of financial education is a national problem