Greetings all,
Common sense by definition is practicing sound practical judgement that is independent of specialized knowledge or training...to exercise normal human intelligence. Critical thinking by definition is the process of actively and skillfully conceptualizing, applying, analyzing and evaluating information to reach an answer or conclusion. How do the two of these actions go together as we deal with our financial decisions? Let me be more specific, some people when faced with a financial bind turn to pay day loans, overdraft accounts, and credit cards as the solution to get out of that financial bind. What I would like to understand is why does an individual turn to the afore-mentioned as the answer to the problem? Are they wrong in making such a choice? Am I wrong for asking the question? Why are check cashing and pay day loan companies only in certain neighborhoods? Are they the enemy? Let me make my case concerning these options using common sense and critical thinking!
Common sense tells me that the last place that I would want to go to get out of a financial bind is to a pay day loan, check cashing or a credit card because of the interest rates these companies charge for borrowing there money. In addition, the relief you get from taking out the loan is only temporary thus the only thing that you have accomplished in most cases is delaying the inevitable. Once you have traveled down the path of borrowing money in this manner, it is hard to go back...in some peoples case they can never go back. Thus, they suffer the consequences by having a judgement filed against them, their credit being negatively impacted and ultimately your decisions concerning your finances are dictated to you versus you being in control and making an informed decision.
Critical thinking tells me that if I were to take a moment to analyze my situation maybe just maybe there is a better solution. Maybe I could call my creditor an tell them that I am in a financial bind and I would like to offer a solution that I am sure that they the creditor would accept as long as the solution is reasonable. Now lets compare the benefits of common sense and engage our critical thinking.
Benefit #1
By calling the creditor to offer a solution, you are showing the creditor that you are a responsible account worthy of doing business!
Benefit # 2
Calling the creditor with a solution is often cheaper than going to the pay day loan company!
Benefit 3
The permanent relief you will gain by attacking the problem responsibly far out weighs the temporary relief and subsequent charges you will pay from going for the quick fix!
Finally I would like to ask you the reader this, is the pay day loan company the problem or is the way we have been conditioned by society and the economy the problem? Who is the real enemy? What does common sense tell you in this situation? What does your critical thinking tell you?
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3 comments:
It's been my experience that common sense or common "cents" as you put it, comes from our environment. Some had resources available while others didn't, thus perpetuating the problem.
It is difficult to make a connection to common sense when dealing in 'dollars' and 'cents' due to lack of proper education. The foundation. In order to apply common sense to financial planning, there has to be a foundation of basic principals, a knowledge base for the individual to rely on in making their decisions.
Why do we teach statistics or algebra to high school kids that wont even be able to properly balance a check book when they go away to college? There may be some application for their knowledge in algebra or statistics, depending on the career choice, but everyone needs to learn to how to become financially independent and responsible.
If a person does not receive this basic knowledge to reference when trying to make a 'sensible' decision, the decision will not be based on common sense but more on fear or the proverbial 'quick fix'!
Education is the key!
According to the previous two post, I would conclude that a persons economic conditions and upbringing play a major role as to how much common cents "sense" an individual has. In going back to your definitions of commoon sense and critical thinking, I would further conclude that common sense and critical thinking are learned actions thus anyone can learn to make better and more substantive decisions regardless of the environment they were brought up in...it just depends on their motivation!!!!!
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