From 1997-2002:

• Mortgage interest went up 24 percent for people ages 25-34.
• Property taxes went up 15 percent.
• Home maintenance and repairs went up 24 percent.
• Health insurance went up 18 percent.

And two more:

• Over the last 25 years, 90 percent of Americans lost income and wealth.
• Families with children are significantly more likely to go bankrupt.

So we’re facing a lot of the same macro issues affecting many families, and while we’ve cut way back on spending, it still isn’t always enough

Another reason is that saving and budgeting isn’t exactly a widespread cultural norm, what with the national savings rate being a negative number and the credit/mortgage mess, etc. For us, I know, debit cards have made us less price sensitive and liable to spend more.

Here’s the latest from MP Dunleavey on that: (Warning–read the whole article, and related ones on her site, at your own risk. They are a serious downer. Hardly Breezy Dunleavey here!)

clipped from articles.moneycentral.msn.com

Numerous studies have demonstrated that when a purchase and the payment for it are closely linked — as when you spend cash — you are more aware of how much you spend and tend to spend less, says Dilip Soman, an economist and professor of marketing at the University of Toronto. Uncouple the purchase from the payment — as when you whip out a card or tap that home-equity line of credit — and you suddenly become much fuzzier about how much you spend. In those situations, you tend to spend more, Soman says.

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