Pitfalls+of+Finance

Section IV--Pitfalls to Financial Health or Happiness
= **Personal debt/credit card debt (Tim)** = = = Personal/Credit Card debt is one of the biggest problems in the average American household. There was 984 million credit cards issued by banks in 2006 with an average interest rate of 13.46% this year. 8.3% of households owe $8,300 or more in credit card debt. Most debts have been accumulated over several years, showing how small balances do add up. Many people have been paying off debts for upwards of ten years and some have had debt for twenty years. Due to this trend many people have determined credit card debt to be very problematic to financial independence. The links below illustrate some statistics relating the growing problem of credit card debt. http://www.creditcards.com/statistics/credit-card-industry-facts-and-personal-debt-statistics.php http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.shtm http://moneycentral.msn.com/content/SavingandDebt/P70581.asp http://www.daveramsey.com/the_truth_about/credit_card_debt_3478.html.cfm This movie shows a documentary on the origins of the credit card media type="google" key="-9048007397539880204&q=frontline+secret+credit+card&ei=j0UvSMPADY6E4gLOkZXcCQ&hl=en" width="400" height="326"

= **Affluenza (Todd)** = Affluenza is a psychological disorder defined as a dangerous and harmful relationship with money or the process of gaining money. It results from an insatiable desire for immaterial things and a drive to "keep up with the Joneses". Its symptoms include compulsive shopping, an inability to delay gratification, a low self-esteem and sense of self-worth, stress, and a need for externalities and material possessions. It can lead to financial ruin and damaged personal relationships, among other tragedies. Some results of the radical spread of affluenza:
 * In 1998, there were more people that filed for bankruptcy than there were college graduates.
 * The average household owes about $5,600 worth of credit card debt.
 * Money plays an important role in about 90% of divorce cases.
 * On average, Americans spend about 6 hours a week shopping and only 40 minutes a week playing with their children.

http://instruct.westvalley.edu/lafave/affluenza.html http://financialplan.about.com/library/weekly/aa060901a.htm http://www.affluenza.org/ = **Shopping addiction (Angela Dannemiller)** = Shopping addiction, also known as shopoholism, shopaholism, and oniomania, is defined as "inappropriate, excessive, and out of control" spending and shopping by Donald Black, MD, professor of psychiatry at University of Iowa College of Medicine. This is an obvious pitfall to finacial health because the over spending can lead to financial ruin. Those who suffer from shopoholism do not recognize that they have over spent their budget and continue to spend over their budget. In addition to over spending, they will buy compulsively and tend to conceal their purchases. There is a significant difference in going a little over board around the holiday season and a systematic overspending. It is estimated that some 6% of the United States population suffers from shopping addiction and it is almost equal parts men and women.

http://www.janetperiat.com/blog/?tag=shopping-addiction http://personal-finance-management.blogspot.com/2007/12/10-easy-steps-to-stop-shopping.html http://www.topics-mag.com/edition9/shopaholism.htm http://www.foxnews.com/story/0,2933,316610,00.html

= **Alcohol addiction (Josh)** =

The social problems arising from alcoholism can be significant. Being drunk or hung over during work hours can result in [|loss of employment], which can lead to financial problems including the loss of living quarters. Drinking at inappropriate times, and behavior caused by reduced judgment, can lead to legal consequences, such as criminal charges for [|drunk driving] or public disorder, or civil penalties for [|tortious] behavior. An alcoholic's behavior and mental impairment while drunk can profoundly impact surrounding family and friends, possibly leading to [|marital conflict] and [|divorce], or contributing to [|domestic violence]. This can contribute to lasting damage to the emotional development of the alcoholic's children, even after they reach adulthood. The alcoholic could suffer from loss of respect from others who may see the problem as self-inflicted and easily avoided.

[|http://en.wikipedia.org/wiki/Alcoholism

media type="custom" key="769427" This video shows a really depressing account of a woman growing up around alcoholism

This comic playfully parodies the negative impacts of alcoholism on family happiness

=Gambling Addiction = The Minnesota Department of Human Services estimates that one percent, or approximately two million Americans, struggle with gambling addiction. Pathological gambling is defined as “the inability to resist impulses to gamble, leading to severe personal or social consequences.” In other words, a gambling addiction is very similar to any other addiction, be it caffeine, drugs, alcohol, or nicotine. A pathological gambler is so addicted that he can’t break the cycle of his gambling. ([|http://www.toomanybets.com/)] Gambling has become a growing cultural problem here in America with the founding of online casinos and the popularity of the World Series of Poker. Many doctors consider gambling addiction an actual disease. Gambling addiction can lead to financial disasters, even among smart people (like the people in our AP Econ class). After seeing these videos, I realize that I need to stop trying to learn to count cards like in 21 the movie and take up a new hobby such as chess or fishing.

==

media type="youtube" key="xfdHQ3-XWds&hl=en" height="355" width="425"

Other Videos on Gambling Addiction

http://www.youtube.com/watch?v=pHDYk15V6hE http://www.youtube.com/watch?v=C0clzNIyU18 http://www.youtube.com/watch?v=n9q8Nl_d1v8 http://www.youtube.com/watch?v=ue8CMoExVOA

Gambling addiction websites: http://www.addictionrecov.org/addicgam.htm http://www.ncpgambling.org/i4a/pages/index.cfm?pageid=1 http://www.gamblingaddiction.cc/index.html http://www.gamblersanonymous.org/ http://www.toomanybets.com/ = **Workaholism (Erin)** = Workaholism is an addiction to one's work. It usually manifests itself as a compulsion to work that goes beyond pleasure in the task or thee necessity of "getting the job done" and sometimes crops up as a form of obsessive-compulsive disorder. While the excessive energy thrown into the work is generally healthy for the workaholic's bank account, such a person can derive little utility from the money he or she earns. To the workaholic, money is incidental; rather, the work becomes the all-important center of life. Not only does this prevent the work-addicted from enjoying themselves outside of work, their families suffer from the lack of attention they receive. Social relationships in general suffer. Worse, the increased stress of work addiction negatively impacts health and is especially noted for raising blood pressure in those afflicted. Workaholism is a growing problem in America at present, but it has a far higher incidence in some other countries, most notably Japan.

[|Here] is an article on the prevalence of workaholism in Japanese culture, where it is known as //karoshi//. Another [|article] decrying the recent increase in workaholics in Western culture can be found here. Finally, we have an [|article] on the consequences of work addiction on the day-to-day life of a workaholic.