An Individual Perspective (Post III of III on Tax Credits)

For many of us, discussing the exact nature of our own financial situation is about the most private subject that could be discussed for a variety of reasons. Many of the reasons to keep finances private are praiseworthy. But, in some instances one can deceive themselves and their children of the nature of their financial system and in an effort to hide the truth from themselves (and their children), they end up working themselves into a situation that is so bad that they are only hiding the truth from themselves.

I have observed a trend in which people unintentionally deceive themselves (and their children) into believing their financial situation is either better or worse than it actually is. I use the word unintentional because I do not believe that the "deception" is neither purposeful nor malicious. It is just a facet of human nature.

In general society I do not see a bias towards believing a financial situation is better or worse than it really is. Unfortunately, in the Orthodox world I see a trend towards believing that their financial situation is better than it actually is, and we often believe that the situation of those around us is just like ours.

In my world an Adjusted Gross Income of $75,000 is quite high (I should note here that I heard the tax credit starts phasing out around $75,000, but is available in smaller amounts through $90,000). And, considering the fact that so many people in our communities begin their marriages and have children before they have completed their educations and have established careers, I can only guess that I am not alone in believing that an AGI of $75,000 will not be reached by many of our community members who, not even established themselves, are already faced with massive tuition bills.

This post really is not as loaded as the previous two posts and was just meant to make the point that one often erroneously believes that those around them are in essentially the same boat as they are financially (some examples to follow). And to understand the impact that a tax credit will have, they one must look beyond him/herself and get the facts about other people.

-->When we first married we lived in an area highly populated by kollel couples. Oftentimes the converation turned to how much WIC one received and for what. In this subset of community, there was an assumption that everyone in the room was on assistance. It wasn't uncommon to be asked what type of WIC you were getting. Incidently, not everyone in the room was on assistance, but it is certainly eye opening to be part of a discussion you can't partake in.

-->Recently while in the store, the clerk behind the counter had to match my credit card to my ID and noticed my card was unique and asked out it. I was explaining that we took out this card because it places money in an investment account and has really benefited us. The man behind me then started telling me how I really need to be careful about this credit card company because their interest rate is high and how we could get a much better interest rate from a different company. Being that we do not carry any credit card debt and that we only charge what there is cash in the bank to pay for, the conversation struck me as odd. But, then I remembered that my husband was privy to an entire discussion with this man and others about refinancing homes to pay off credit card debt and other expenses (tuition would be one of the expenses) and how there was an assumption that everyone there could relate.

For now I will wish my readers a good night and leave you to ponder my ideas above.