Understanding Social Classes


The Importance of Social Classes in Finance

Learning about social classes allows you to better understand where you stand, so that you can take the right steps towards prosperity. Prosperity Club will discuss whether it is an individual problem, 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. We will discuss how different philosophies think it can be resolved. 

Get a Financial Education and Become Socio-Politically Active

Understanding the division of classes 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

Often people consider themselves poor because they live paycheck to paycheck. They can't keep up with expenses such as car payments, credit cards, housing, or other debts. If these are your concerns, then chances are you belong to the middle class. The poor generally have no debts because they have no assets or the income needed to qualify for loans.

They 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. 

The Middle Class

The largest social class in the United States is the middle class. You are classified as a middle-class individual or family when 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 their medical insurance. Concerns of the middle class include a strong sense of struggling to get ahead and maintaining their lifestyles. Struggling makes them feel like they are poor, when they are living beyond their means – rather than within. Sometimes, middle-class individuals feel short-changed when the government provides for the welfare of the poor or when the wealthy get bailouts.

Rich vs Wealthy Money

Rich vs Wealthy

Rich and wealthy should not be used synonymously. Being rich has to do with income. To clarify they are defined as being in the one percentile of earned income. It is also possible to be rich and not wealthy because they spend everything they earn, living paycheck to paycheck.  

Being wealthy has to do with accumulations of financial assets. A person can be wealthy without being rich. This happens through frugality with little financial means and good money management skills, by putting discretionary 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. What makes these countries more successful in keeping poverty at bay? We will take a look at some examples from around the world. 

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Building a Safe, Prosperous Society Beyond Class Limitations

The distribution of social classes should not be a factor that affects the rate of crime and violence in a society. Some countries, where the division of social classes has little impact on crime, have strong support systems for the underprivileged... What are those support systems? We will explore the reasons.

Helping You Become Financially Independent

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