The President has proclaimed the month of April National Financial Capability Month. What is National Financial Capability Month? It’s the federal government helping individuals and families make more accurate budgets.
The proclamation reads “My Administration continues to encourage responsibility at all levels of
our financial system by cracking down on deceptive practices and
ensuring that consumers are informed of their rights.”
Apparently responsibility at the federal level means a budget which does not balance in the next 10 years and which adds an additional $5 trillion to the national debt over the same span.
CNS News notes that the President’s proclamation directs people to a website, mymoney.gov, which offers advice on “Taking Control of Your Finances.” A couple clicks later you arrive at this FDIC page titled “5 Things You Should Know About Credit Cards.” Here are points one and three:
1) Use them carefully. Credit cards offer great benefits, especially the ability to buy now and pay later. But you’ve got to keep the debt levels manageable. If you don’t, the costs in terms of fees and interest, or the damage to your credit record, could be significant.
3) Pay as much as you can to avoid or minimize interest charges. If possible, pay your bill in full each month. Remember, paying only the minimum due each month means you’ll be paying a lot of interest for many years, and those costs could far exceed the amount of your original purchase.
U.S. debt to GDP is currently around 75 percent which is historically high with the exception of World War 2. According to the CBO it should remain stable at this level for about a decade before shooting upward to somewhere between 112 and 169 percent by 2037. Paying the interest on our debt now amounts to more than the cost of several cabinet departments.