This is why it's so hard to save money
Short version: Nonluxury goods are getting more expensive, and you aren't making any more money.
Even as the average household net worth plunged by almost 40 percent between 2007 and 2010, the cost of everything from health care to housing has risen for decades at rates well beyond that of inflation. Almost half of us are living paycheck to paycheck, barely able to save a penny.
In fact, it’s long been known that the majority of bankruptcies result from health issues, job losses and fractured families, something no amount of cutting back can protect against.
One of the main reasons we need to borrow money is college loans. Our collective student loan debt is more than $1 trillion, a sum greater than both our credit card debt and our auto loans.
The student loan debt problem is basic: college tuitions have increased at more than quadruple the rate of inflation since the 1980s. If you’re a parent, good luck saving for that expense. It’s a primary reason students who borrow money (some two-thirds of all undergraduates) now graduate with an average of $26,600 of debt. That, in turn, will make it harder for the next generation to save.