The Importance of
Social Classes in Finance
Learning how social class affects your life allows you to better understand where you stand, so you can take the right steps towards prosperity. Prosperity Club will discuss whether it is an individual problem, a national problem, or both. You will learn how class division is responsible for various social and law-and-order issues, but more importantly, what can be done about it. https://prosperityclub.com/blogs-finance-insurance/
Get A Financial Education and
Become Socio-Politically Active
Understanding how social class affects your life allows you to better understand your environment and as a result helps identify opportunities for personal and collective growth. Being a socially aware individual helps you become aware of what’s happening around you.
The social classes in the United States are as follows:
THE POOR
Maybe you feel poor because you live paycheck to paycheck. You can't keep up financially with your car payments, credit cards, mortgage, or other debts. If these are your concerns, then chances are you belong to the middle class. The poor generally have no debts, they have no assets or income needed to qualify for loans.
The poor do not own anything, and many do not have bank accounts. They are at the mercy of using cash or go to places that charge outrageous fees for cashing their checks. https://prosperityclub.com/understanding-the-different-types-of-poverty/
THE MIDDLE CLASS
The largest social class in the United States. You are classified as middle-class if you own a car and a home with a white picket fence. People in the middle class send their children to college, save for retirement, and pay for medical insurance. If you are in the middle-class you might be concerned about struggling to get ahead and maintaining your lifestyle. Struggling financially can make you feel like you are poor. Sometimes, you may feel short-changed when the government provides for the poor or when the wealthy get bailouts. https://prosperityclub.com/what-is-considered-middle-class/
RICH VS WEALTHY
Rich and wealthy are not the same. Being rich has to do with income. If you are rich, you are in the one percentile of earned income. You can be rich and not wealthy if you spend your earnings without investing in assets, living paycheck to paycheck.
Being wealthy has to do with accumulations of financial assets. This happens through frugality regardless of your income. You can be wealthy without being rich, you have good money management skills, and you use your income towards assets that build wealth.
The Social Impact of
Poverty in the United States
The United States falls among the countries where the division of income, social classes, and poverty strongly influence various social and crime problems. The rate of crime and violence in America is notably connected to poverty. Other countries with a similar division of social classes but little impact on crime and violence, have different communal and national support systems.
Building a Safe, Prosperous
Society Beyond Class Limitations
The more a community suffers from low income, the higher the crime and violence. Social class should not be a factor that affects the rate of crime and violence.
If you are someone that continues to struggle financially, no matter how hard you work or try, know that it is a complex issue that goes beyond individual responsibility.
In order for our nation to prosper, we need to learn from countries with the least amount of crime, violence, and poverty.
Some countries, where the division of social classes has little impact on crime, have strong support systems for the underprivileged.
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Under extraordinary circumstances, such as an economic collapse or a pandemic, the government steps in and makes decisions. These decisions could be beneficial to some, while making an already difficult situation worse for others.
The Great Recession from December 2007 to June 2009 brought hardship for many, some lost everything.
Prosperity Club was established to help others be prepared for situations like these.
HELPING YOU BECOME FINANCIALLY INDEPENDENT
Learn from seasoned prosperity and finance educators who want to see you master money management and become financially independent.