I think it's more accurate to say "It's expensive to be stupid." Financial institutions aren't limiting access to these things to rich people--it's just that some people don't know about them. And not knowing leads to running into ways that people can nickel-and-dime you out of your money. "A fool and his money are soon parted." And a down-side to our system is that it facilitates that parting better than many other things that it does.
@@onthemerits It's not just that. Let's take something simple like buying in bulk. Though buying in bulk will save you money in the long run, you have to have a larger lump sum up front in order to do so. The poorer you are, the less likely you are to be able to get that lump sum together before you need your item, whatever it may be. In addition, with certain items, higher price means higher quality, which can in turn result in a longer period of time before the item wears out and needs to be repaired or replaced. In many cases, it's cheaper in the long run to buy a quality item that will last longer than it is to buy a several cheaper items that keep wearing out over the same time period. But to get access to high-quality items, you need to be able to afford that higher price tag up-front. As pointed out in this video, there's a minimum balance that needs to be maintained if you're going to have a bank account, and going below that costs fees. Again, it's much easier to obtain and maintain that minimum balance if you're not poor. It's also impossible to safely invest - even in low-risk investments - when you don't have a large-enough emergency fund built up. Putting $100 a month into, say, an unmanaged mutual fund is much easier when you don't need that $100 just to put food on the table, or to make sure the next time your old used car breaks down you can afford to get it repaired. And it's not like you can borrow the money, either, because you likely won't have a good credit score, as creditors won't give you loans or credit cards unless you have a certain amount of assets. Poverty isn't something people choose. Anyone who says otherwise has no idea what they're talking about.
@@AndrianTimeswift I was poor ("US poor", not 3rd-world poor) at one time in my life. I was a student, with a wife and a few kids--several mouths to feed. I didn't have a Costco card, but my wife and I were still able to leverage coupons wisely and build a food storage--in our poverty--through which we could save up food reserves as well as cash reserves. This allowed us to save a lot of money by only buying things when they were on sale. At one point, through leveraging coupons, we didn't have to restock shampoo for 3 years. It didn't take a lot of money to do that--it did take some knowledge and planning and some financial discipline. Buying low and selling high are market principles that work at all income levels--of course rich people can get more benefit out of those principles, on an absolute basis, but that doesn't mean they don't work for poor people too. Additionally, I've seen these principles work outside the US as well. I have close friends in very 3rd-world parts of the Philippines. Years ago they lived in a little bamboo/nipa hut with a large pig living under their floorboards. They had 9 kids--11 mouths to feed. Today, after many years of their children working hard in school, many of their older children are already successful and ("poor" again) raising families of their own. They, justifiably, consider themselves "poor" in relation to me--well, more accurately, they consider me "rich"--and they are correct, nearly every American is "rich" compared to them. However, they don't live their lives with a victim mentality thinking that they are defined by their poverty. Material poverty has its problems, but it's not the world's biggest problem, by a long shot. The worst problems come with inter-generational poverty--when families are perpetually stuck. And those problems are directly tied to education. I have been poor. Part of that experience sucked, obviously. But with a "future-mindset" it wasn't a crushing experience. To the contrary, it was refining and I learned quite a lot going through it. I truly wouldn't be who I am today without that struggle. You say a lot that "it's a lot easier [to do this] if you're rich" and "which is a lot harder if you're poor". Duh. Who can argue with that? But "harder" doesn't mean impossible. And people grow a lot through doing hard things. I know I did. Truthfully, having been in the underclass, I feel worse for those born with a silver spoon. They often don't face the struggle that refines their character. As a parent, I would not want my children to have no understanding of poverty and only know ease. I think wealthy parents would have an immeasurably more difficult time attempting to raise quality human beings. That's a challenge I honestly would not want to face.
@@onthemerits Congratulations on your carbon fiber bootstraps. I'm sure your success story is an inspiration to us all. Meanwhile, those of us who are too busy working to spend hours hunting for coupons and who have no space to store three years worth of shampoo will just have to build our characters so that we can become as saintly as you are now. Did it ever occur to you that instead of blaming the powerless for their powerlessness, it might be a better use of your efforts to actually try to help them? Of course not. You have such a wonderful character that empathy for those less fortunate than yourself is beneath you. I'm genuinely glad that you managed to beat the odds and escape poverty, but don't think for a minute that because you and a friend of yours managed to do it that such a feat is achievable for everyone in poverty. What are the millions of homeless supposed to do? Do you realize how difficult it is to find a job when you have no permanent address? How about the disabled, whom nobody wants to hire or accommodate, and for whom obtaining the welfare they need and are due can take years of struggle? How about all the wounded veterans who have fallen into poverty? Do you think they lack the discipline or education necessary to replicate your feat? And did it not occur to you that a lack of education is often a direct result of poverty? Poverty is one of the biggest problems in the world today, in the same league as climate change, the looming energy crisis, and slavery. It is a problem created by forces well beyond the control of those who suffer from it. I know people in poverty, and for the most part, they are just ordinary people doing the best they can to get by with what they have. Their characters are not deficient. I can't say the same for the people who, through greed, malice, or indifference, choose to insult the poor instead of trying to help them.
@@onthemerits as much as I agree with many of your points, you still need to understand that the cards are stacked against the poor. It is very possible to get yourself out of poverty, but much of that depends on education and there is also an element of luck involved. This is why the current education system in the US is so lacking. It too often never teaches any practical skills and knowledge. That and the fact that the readily available public education system is being slowly gutted. The poor often stay poor generationally due to the lack of opportunities for the undereducated, and the inability to receive the knowledge and skills to break the cycle. That and the fact that there culture of ignorance breeds more ignorance. This is obviously still ignoring the fact of there being a need for a poor class of people for there to be a rich one, which is not a particularly good or bad thing, just a fact. Economic mobility is becoming more and more stifled as things continue. The people in control will always want to stay in control, so they are actively fighting against the idea of a meritocracy. The entire situation is complicated with too many factors feeding into it to easily keep track of.
The "having no credit history is worse than having bad credit history." really hits home. My entire life I used cash money to buy everything, cars, motorcycles, pay for my apartments, all of my bills everything. I figured when the time came that I might need to borrow/develop credit I would be good. I managed my money well, budgeted to always spend less than I had, and everything that should be good. Nope. Turns out they want us broke, they want you owing them, you aren't profitable if you aren't in debt.
Nobody is quite as profitable as the re-financer Nobody is quite as unprofitable as the early-payer (not even the guy who went bankrupt and whose house got adverse possesed when you werent looking)
The fact you Americans have to build up your credit, is a disgrace. I never had a credit card and got a mortgage at ca. 3.5x yearly wage basically the day I was hired at age 23. 🇳🇴
I’m 20 and my mom wouldn’t let me get I credit card until I moved out. The limit was $1000 and my entire life she told me if I couldn’t buy it in cash, I can’t afford it. I paid for my car in cash, and every time I’ve had an emergency I couldn’t afford, my mom would give me a loan because she doesn’t want me using credit from a third party. I’ve never missed a payment and my credit score is 800. I only really use my credit card for gas and food and pay it back before the end of tho month. It’s important that parents drill financial knowledge into their kids, but I was obviously blessed to have parents with money. I couldn’t imagine living in this economy as a 20 year old with parents they live paycheck to paycheck.
@@bigpapi6688i remember my uncle co-signed a card for me, and told me to spend about $100 a month on it my credit score was ~744 when i opened my bank account after i got my first job still not quite sure what it means, but i’ve been told it was better than what he had until a few years ago
“The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet. This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.” - Terry Pratchett, Men at Arms: The Play
Yeah, I hate when that shit happens. The good stuff will save you money in the long run; but, if you can't afford it, you end up paying even more than the good stuff would have cost, because the crap you can afford, falls apart...
My great grandma had a saying that my mother repeat everytime I try to save money by buying cheap things "I'm not rich enough to buy cheap". Like Dishsoap yeah the great bottle is really cheap but the little bottle of a better mark will be far more efficient and thus will last longer.....
My great grandma had a saying that my mother repeat everytime I try to save money by buying cheap things "I'm not rich enough to buy cheap". Like Dishsoap yeah the great bottle is really cheap but the little bottle of a better mark will be far more efficient and thus will last longer..... PS: They used dollars in the English version? In French version they use piastre an old money XD
Not to mention the poor man would later have medical issues related to wearing bad shoes for ten years. And in the US, that would come with astronomical medical bills, and I HIGHLY doubt his employer would pay him to take the time off he'd need to sort that out.
It's _so_ expensive to be poor. I used to be homeless, and it costed me so much that I was paying about twice what I'm paying now (as an apartment renter). Much of that was for food, because being homeless requires just having a place to exist, and fast food places will let you hang out if you buy food. And if you don't have an oven to cook with, there is no cheap food available to you, even if you're not spending for time to sit down and heat up in fast food places.
Always the protein part of food was the problem. Non perishable no cook carbs are easy. When I was homeless, despite working full time, protein was precious.
Even outside of such extreme as being homeless, it's still expensive. Once I got enough cash to get mortgage, I could pay less to bank than landlord previously AND I'll do it only for 30 years instead of forever. I live in Poland but I'm sure other places are similar.
@@sleeexs "Bread and bottles of water" (chimes in the clueless guy). Being homeless means being on your feet around the clock, which means you need calories. It also means that you likely don't have any storage except perhaps a backpack (if you even have room for something like a loaf of bread). Why don't you simply trust people who know better than you because they've actually had to live it?
@@Gnidel True. Renting necessarily costs more than owning a home, otherwise it wouldn't be profitable to rent to others. And renting never brings ownership.
"Knowing better” really out here teaching us all the things that we should have learned in school from taxes, rights, to banking. He’s really doing us a huge service by making these videos.
Granted it's been a few years since I graduated high school but the concept of money and doing taxes was taught in economics... so it's taught but whether people pay attention is a different story
@@snbks4ever how fortunate, economics are not even a subject generally taught, it is not the US so I can not tell about there, but here they just teach that to those who take tourism and hotelery only, for some reason.
@stockart whiteman Maybe different states do things differently, I mean for all I know even my state has changed too which wouldn't surprise me. I do wish I had things like this back then because trying to learn about this stuff at 9 in the morning was never the easiest and agreed there really is no standardization
@Average Joesson You would think so, but its not so simple Most Americans don't have a budget at all, they just buy what they need living paycheck to paycheck wondering why they can't save anything
In Pandemic Self Isolation, it's fairly normal and not necesserily reason to worry if you talk to your plants or piggy bank or what not. It's when it talks back, that you'll need to call a crisis line.
Having no credit history is worse than having bad credit. I couldn’t believe it when it happened to me. I was literally being punished for having been totally responsible. After that it was no mystery to me why so many people are irresponsible with money: our system actually encourages, in fact incentivizes, bad monetary habits.
It's a weird one in so far as you can do it without putting yourself in a bad situation, but it always involves putting yourself at risk where there didn't need to be any. You can get a decent credit score by using a credit cars for your daily transactions and paying it off every month, but you pay way higher fees for a credit card AND they always give you a limit that's honestly just a bit too high to feasibly pay off all at once from your paycheck without savings. So you have to have proper self-control. Evil that that's the system, but it can be done. Just in a way where they dangle the carrot of consumer debt in front of your face literally constantly though.
@@chloedsmith This is what I did. I lived with a budget and paid off my credit card every month in full. This was the only "loan" I had, and it paid off. My credit score was really good, and my husband and I were able to buy our house with a very low interest rate. It might take longer to build up "good credit" this way (I wasn't really checking my credit score constantly), but I'm pretty sure it was always in the 700s. I got my credit card at 18 and paid it off in full every month, and we bought our house when I was 27. We still pay our credit card in full every month, and it's been 20 years. It is possible!
@@chloedsmith The thing is that this debt that is dangled in front of you, eventually breaks off the line and then it compounds. It's not even about frugal spending, it becomes about a medical emergency or a crisis that lands you a few thousands dollars in credit debt. Now you can't pay that and thus it compounds on top of your regularly monthly/annual credit debt, right? Then there's the problem of trying to plan financially, but prices keep going up whilst wages stay the same. So now, wages are the same but prices and credit interest rise in pretty much a smooth slope. What you could afford a year ago to take on credit, maybe you can't afford that anymore and that credit debt now accrues. A good example of this is mortgage premiums. The average mortgage premium since 2019 has almost doubled. That's how they catch you with credit debt. You plan and plan but prices go up whilst your base income remains stagnant. Now, it's a different thing for the middle and upper middle class because there usually exists some form of safety net, right? You're not usually betting on credit with every last dollar. If you spend frugally, you may be alright and accumulate decent credit because you also have disposable income to buy in cash instead of credit. If you're poor and have a credit card, you're more likely to spend alot more on the credit card because you don't have cash to buy in bulk or to spend throughout the month. So you put it on the card. Poor people need credit to survive, middle and upper-middle income people have the freedom to use credit as a means to bolster their financial profile in the eyes of banks and lenders. The more money you start with, the more credit can help you. But the less you start with, the more it will hurt you.
It's not really that at all, you're making it sound intentionally malicious like they want to punish you when thats really not the case. You want to borrow a large amount of money in order to make a responsible but large purchase. Say a home. Before they let you borrow this large sum of money, the bank wants to know how good you are at borrowing money and paying it back. That's why they look to see if you have any history of borrowing money. If you have no history, then you're a complete unknown, and thats understandably kinda terrifying for the bank. So they charge you more interest. If you were genuinely irresponsible with money, you are not rewarded for that. If you're irresponsible, you spend more than you can afford and you start to accumulate debt. Lets say, credit card debt. At some point, the interest payments and minimum payment each month get too big that you can no longer pay it, and you miss a payment. Thats when you get hit with the credit score penalty. As for you living life only on your own money, that's great. That's respectable. It's nice to see that you are responsible with your own money. But would you also be as responsible if you were using somebody else's money? If you could suddenly have access to 10K in credit from your credit card, would you go off the rails and go on a shopping spree? Being responsible with your own money is not the same as being responsible with other peoples money. That's why they need to see a history of borrowing other peoples money, not just a history of spending your own money responsibly.
“It’s expensive to be poor” that’s the truest statement I’ve heard in a minute man. Not only financially expensive but educationally, property-wise, environmentally, etc. It feels like a trap to keep the poor people poor and the rich folks rich🤷🏾♂️🤷🏾♂️ but what do I know
I empathize with Pig, I too have to deal with people just not getting simple concepts like having a literal-slash-metaphorical battle with an evil copy of themselves. It's incredibly frustrating.
im 28 and didnt know over half of how this stuff worked, yet understand it all of what you said in a 25min video. why wasn't 30mins of my education time spent explaining this?
I’m so lucky my parents and I opened a joint credit account as soon as I was old enough. They kept the card and would use it for things I pre-payed them for. They also used it for things such as school supplies, but fortunately didn’t give me full access before I understood the importance of both using the card yet paying it off each month. They also helped me open a Roth IRA at 16 when I had my first “official job.” I wasn’t able to deposit much, but they explained the importance of time. I was so fortunate to have parents looking out for me and with the ability to help me out. I never had a car until graduating from college- but they helped put in a few extra bucks to my IRA that would have gone to a car or insurance. I understand that my boost up in life is quite privileged. It did mean I didn’t have all the “nice things” my friends had (boo hoo- I know). I’m so sorry basic finance wasn’t covered by my high school. I feel that a course in money management (as well as statistics/data literacy) would have been invaluable.
Very well done, as someone who works in the banking industry you really nailed it. It's so frustrating to see people get caught in debt traps because they do not have enough money to be deemed important to the traditional banks. Great video!
When did he leave? I just assumed it takes a significant time to research these videos. He also might have another employer/job as well as a personal life.
I liked Yang, I just didn't think UBI was going to work without stiff implementation of rent controls. You cannot play nice with those policies, and frankly I dunno if he could handle the right wing right now.
@@DuoXCity i think he could have done alright. Afterall, he wouldn't have to face them himself all the time. He could get an ideological supporter who's a bit tougher to deal with them.
@@DuoXCity i think he's one of the better candidates to handle the right wing because he's happy to talk about business, finance and economics. even shaprio seemed to have some respect for him in this regard.
Yang: "In other countries, you can get a lot done at the Post Office aside from mail. We should follow suit here in the U.S.-it would reduce costs for consumers, make Post Offices more vital, and provide financial services in rural areas." Bernie: "We must ensure all Americans have access to basic financial services and end the exploitative practices of these modern day loan sharks. We will utilize the 31,000 post offices across the country to provide basic banking services. This isn’t radical, or even unusual. More than 1.5 billion people across the world have access to some form of banking at their local post offices. In fact, we used to do it here. From 1911 to 1967, you could bank at your local post office in the United States. In the middle of the 20th century, our postal banks serviced 4 million customers." Wither would've been better than Biden :X
Justin Barnes why does UBI need rent control? Rent controls only cause average rental prices to increase faster than they would otherwise (look at SF and NYC, rent control artificially decreased supply of affordable housing, driving *up* average rents) but even if rent control could be implemented in a way that keeps the available pool of housing big enough to match demand, why would UBI play a role?
I'm getting a bit depressed about how the solutions to these problems were already put in place in the past and then removed! The Glass-Steagall Act (removed in 1999), the postal banking system (shut down in 1967). Why is it so difficult for people to recognize when something just works and support it? Oh, right. We wouldn't want EVERYBODY to prosper, would we? That would be SILLY! Now I'm really depressed! Thank you for your usual excellent job explaining complex issues in a way that most people can understand.
Boomers got theirs, then scrubbed worker and impoverished protections and services when they didn't need it anymore, and started caring more about their investment portfolio.
From everything I've heard about from KB and other sources, the USPS was profitable pretty much until the government stepped in and fucked around with it. I don't understand how boomers or anyone could conceivably vote to damage it, especially since some boomers would have grown up with USPS banking services. I think the main issue wasn't people voting against their best interests, but rather elected officials doing some shady back-handed deals with banks and postal companies like FedEx and UPS.
@@lego501stTrigger I believe the usps was fucked with was because they had been putting their retirement on to the federal gov. and the reason that it was changed was because the feds just wanted them to deal with it, plus pay the feds back. That's why the debt is so high. Take that with a grain of salt though I only read a couple of articles
@@andrewputnam2717 the usps was fucked with because they are a successful government program/department/whatever that has a high approval rating with the vast majority of the population. and when your parties dogma states that "government is always bad" your only solution is to kill the parts of government that are well liked. that's really all there is to it.
What's really crazy is living in the UK, seeing these failures happen in the USA, then hearing people here suggesting we do the same. I don't pay for my bank account. I'd like it to stay that way.
@@ironeleven I'm sorry but she was right. An auto loan is probably the worst possible way to "build credit". Purchasing a depreciating asset that you can afford without credit, at a 10-15%(if not more) interest rate is honestly insane. Whatever credit you built is completely lost in not only interest, but the depreciation of the car. Like financial advisors are usually against financing a car at all, especially if you can afford to purchase without financing. I seriously hope you bought the car outright..
In Australia, we have credit scores but they don't affect how much interest you pay, just whether you get the loan approved. That said, of your credit is bad enough that you can't get a regular loan, you will end up having to go somewhere that charges more. Also, there's no need to "build credit" here because you credit report only covers "negative" events like missed payments. No credit is exactly the same as perfect credit.
*People have no idea how expensive being poor is: Late fees high interest rates payday loans, no opportunity to invest in markets fees from credit cards, bus fares high ins premiums, no opportunity to open a business, or by and sell things, the list goes on and on its why its so hard to get ahead*
The answer lies in the very phrase "get ahread". You need someone behind you for you to be ahead and it is in your best interest to keep the ones behind you for you to be comfortably ahead
I wish I could like this more than once. No really, this video is fantastic. I actually work in the financial services industry and I wish more people knew about this stuff. The price of being poor in the United States is so high it perpetuates poverty. It's a catastrophe.
I'm happy to not live in the US. Since I was 13 i have had full control of my bank account. No fees until i turned 20, i have right to buy mutual funds for no extra fee, and it includes a stock portfolio for no extra fee. Only costs I have ever spent is small maintenance fee for having a debit card, but that wasn't until I turned 20, even though I had it earlier. No hidden fees, access to debit card, savings account, mutual funds, stock portfolio. No different how much you have in the account, you can literally have 0 dollars in your account and 0 income, I had that as a teenager, they will not close it or put a higher price for it. You don't get extra rewards for being a big spender. This is all standard for all bank accounts, regardless of bank. To me all of this information is worthless, all I can do is sit and wonder how it I legal.
As a CSR (Teller) for Bank of America who also sometimes wears less vibrant shades of green - well done. Please come in and educate my clients you're much better at it than me! Absolutely love your channel, dude. You've helped me learn a lot over the years.
EDIT: I stream Sundays and Tuesdays, catch me then! I'm live on Twitch right now, answering questions and giving director's commentary - twitch.tv/knowingbetteryt
Slight omission at 7:50. The "six withdrawals per month" limit on savings accounts only applies to card and electronic transactions. You can still walk into the bank and get money out from the teller as often as you like. (The limit is just meant to discourage using a savings account like a checking account, not to deny you access to your money.)
Depends on the account. There are some savings accounts with higher interest rates that you aren't allowed to withdraw from at all for x period of time.
One thing that isn't mentioned is that holding money in hard currency or an account with interest lower than the inflation rate means you are LOOSING money the longer it sits.
I can't thank you enough. This video came out just after I turned eighteen, and it's the reason I have outstanding credit. I have a couple high end credit cards with thousands of dollars available, but my last couple jobs handed me a debit card thinking I was going to use that to pay my bills. Life can be amazing, even without any degrees, license, certifications, or active service.
In Canada, the rules regarding credit unions have changed over the years. You no longer have to be in a particular occupation to be a member anymore; the rules were changed so that you only had to reside in a particular community. That has since been changed as well (at least in the Province of Alberta) as there is at least one credit union that has branches province wide.
alberta govt treasury branch also operates as a retail depositor. in the usa there is the bank of north dakota - govt owned/operated and gawd help the politician that proposes "reforms" to it: said parasite will be out of a job even if it means doing a "recall" and turfing him. it's been done decades ago and the bloodsuckers in our leg and governor's office know enough to avoid it altogether. ps canada has much tighter rules on your banks than in the usa. here it's a free for all anyway they can get away with...
Omg these videos are making me such a nerd. As he started to build up to postal banking I got hype af. I audibly shouted “postal banking!” and when his outfit changed I popped off lol.
I wish I would've found this channel when I was homeschooling my son. But glad I found your channel now. He's back in public school and graduating this year, at just 16 years old. So proud of him 😊. I share with him now, and my other boys.
Knowing better, I do have a real question - I’ve found all of your videos so informative I was curious what your research gathering process is? You are so well researched that I’m surprised you can put out videos as regularly as you do.
I lived in Japan for a while, and despite making a rather low amount of money, I was still able to easily do my banking through the JP Post office. Conveniently, the main office was on my bus route, only a block or two from my job. It made my entire life there so much easier, as it was a nationwide service, allowed my employer to pay me via direct deposit, and they had tons of ATM's. After seeing how well it worked having banking and insurance services through the post office, it made me wonder why we didn't have it here in the US...
@@SemiDoge Sorry, but no. Neo-liberalism had nothing to do with it. Quite the opposite, actually. Postal banking ended in the US because not enough people were using it. Postal banking was created before there was the FDIC to insure deposits so your money was guaranteed by the full US Gov. The peak of postal savings was 1947. From there on it was a steady decline until it just didn't make sense any longer. With the financial and moral failure of 'Big Banking' these days and the ensuing banking deserts, it does make sense to bring it back even if it isn't profitable. Because that was government is for; to provide service to its citizens. ALL of its citizens, not just the wealthy ones.
Man, I always learn so much from these videos. These are like PSAs. I gotta look more into postal banking. Thanks for the excellent content! Stay well out there everybody, and Jesus Christ be with you friends.😊
My least favorite/actually favorite question: "Are you the homeowner?" When getting a sales call... my reply: "If I went to the grocery store, and attempted to leave while only paying %5 up front, would you say I owned those groceries?"
Well, not to be 'that guy' ... you own the home. The seller got paid. You have a large debt to the bank. People do go to a store, use a credit card, money they don't possess goes to the store owner, and you have a debt to a bank. Everyone consists them your groceries.
As soon as you started to mention payday loans, I instantly got mad. I used to work at Experian Credit Bureau, in the past, which got me a LOT of training about finances, and payday loans were by far the worst plague on the American people. It's just evil. I really wish financial literacy was taught in school.
Financial literacy classes sound nice, but realistically most people wouldn’t pay attention making them a time sink. It’s not hard to learn by yourself in the 21st century. They don’t teach you how to brush your teeth in school so they shouldn’t have to teach you finance.
Man, this video is loaded with all the information I've been asking Google for the past 2 weeks. Thanks to the UA-cam's algorithm this video found me (this is fascinating and terrifying) and thank you very much for putting all this information together.
I might recommend asking Reddit's personalfinance community. It's got an amazing wiki for describing the most common next steps to make, from if you should pay the rent vs the gas to how much you should be investing in a 401k. If it's not in the wiki or you don't understand the wiki, the people there can answer just about anything else, up until the answer becomes 'hire a tax attorney'.
Well.....if you use Google, and their products...they have been collecting and using the data they've obtained on you to help you.....track you......build a profile On you.... AND to send advertising your way. I highly recommend watching The Social Dilemma on Netflix ;) Ps-----There are alternatives to Google searches and products that don't track you.... Duckduckgo Firefox Use another email program other than Gmail, etc.....like protonmail.
@@St3veWK I'm shaking on a corner after watching The Social Dilemma and The Great Hack (both on Netflix). Thing is if you think about it there's not a really way out. It's either being part of it or giving up on everything to be caveman/cavewoman harvesting your own food (not even sure that's a possibility in the world we live in now).
I guess you are confused about what he means by "Money". Think of it this way, debt is an asset that a bank owns because it is an asset it has value so thus banks create value. Money however is just a way to express value in numerical terms.
I agree. If i give one dollar to a bank, for accounting purposes the bank has 1 dollar in assets and 1 dollar's worth of debt (who it ows the depositor). If they lend that one dollar out, they would have 0 dollars in asset and 1 dollars worth of loan asset. So at the end of the day, the bank created financial instruments, not money. If I create a toy worth 10 dollars, I didnt create 10 dollars, just a toy thats worth 10 dollars. Same as banks, they created a loan worth 10 dollar. If they actually created money, there wouldn't be bank runs. That said, the video was pretty good!
@@Threewisejavi Dont the banks in the US need to keep 10% of deposits as reserves? In any way the money comes from the fact that, if they lend another customer the remaining 90%, the balance on the first account will be 1$ but the bank will create another 90 cents on the second account. Now there are 2 accounts with 1,90$ total that can be spent by the customers. But it gets even better: If the loan of 90 cents is used to pay for something and lands in another account, the banks can take the 90 cents and use it as the basis for a 3rd loan of 81 cents. A deposit can increase the money supply by up to 10x. But since banks are only required to keep ~10% of their deposits as reserves they´ll only be able to pay 10% of their customers balance in case of a bank run.
Postal Banking is great from a government finance perspective as well. In developing countries where raising debt for government spending is an issue, post offices offer many saving schemes with decent interest rate (6-8% in India which has a inflation of 5-6%) and payment services and the cash stored this way essentially goes into special government bonds.
here we see a war veteran educated in history and psychology slowly completing his descent into ~madness~ acting. how this happened is unclear but we will try to uncover the reasons behind this strange occurrence
Since you mentioned Patreon: I was surprised to find out that they only take US credit cards and Paypal. Like wtf, your only job is to transfer money and you don't offer european default payment options like SEPA-withdrawal or even just advance payment transfers?
If I remember correctly, you have a whole video on the post office and a huge segment of that is about postal banking. The short snippet you had at the end of this video sold me on it even more.
Hey Better! Fantastic video as always. As a Twin Peaks fan, your commitment to the bit for this series has been awesome. Also, just to let you know, I don't think this video was sent to my sub box/recommended to me. I found it by randomly checking out your channel.
Sir, I don’t always agree with you. But that’s why I love watching your content. As you lay out information, link sources, and allow people to make up their minds. I may not always agree with you but I respect your dedication.
Great video as always! Never stop making these, please. You have this great ability to distill complicated topics into a few important core points that make it really easy to get a base level of understanding.
This is a bit cursed, but: You're the father I never had, please keep up your work. You are a voice of reason that comforts me I'm a broke genZ individual so I can't give you anything on patreon - but I actively share your videos as much as I can. Be safe my dude.
As a co-owner of an independent pizzeria that accepts VI, MC, AMEX & Discover, the most interesting part of this for me is that I am helping to fund reward cards with the processing fees that I am paying. Yikes! Thanks KB, for making sure I know better!
In the UK its rare for a bank to charge for a bank account, and as you said the post office offer banking services, but they also allow you to access certain private banks over the counter! Cashback cards are quite uncommon though.
They're about the same in our country (gonna guess your name isnt random gibberish and is polish) they're just scaled to value of our currency which has comparable buying power in our country as dollar has in the us. Meaning u can get same thing for 20$ as you can for 20pln (plus minus some change ofc)
I'm Chilean and truly shocked about that fees. The two biggest banks here (state-owned BancoEstado and Banco de Chile) have zero maintenance fee debit accounts with some fees from things like withdrawals (but in the order of fractions of a dollar per operation) and no requirements of having always money in the account, with the two main requisites as a) Having a national ID number and b) Being 18 years or older. There is at least one bank with a requirements for a zero maintenance fee debit account (Banco Ripley) but most people can accomplish those, and some others with some fees always under 4 USD a month (or in the credit union Coopeuch, which isn't really a fee but a participation quota); and some new neo-banks (Tenpo, Mach, Superdigital, and others) with few requirements and mostly at zero maintenance fee. And with that ongoing pandemic that was important, because the government distributed payments almost entirely electronically, so it could avoid overloading banks with people.
@@blueoval250 literally me watching the video. Who pays these fees anyway? I've never had these fees, minimum monthly deposits or amounts, or any of these other fees. I've never had a student or vet account and Ive never had these fees waived. If you just shop around at more local banks rather than the big BofAs and Chases it's pretty easy to find accounts without ridiculous fees.
@@Cman5687 not to mention BOA will repose your house even if you don’t owe them money, then they’ll fight you in court and when you win they’ll refuse to pay. True story.
I am new here, and I love your vids so far, KB. Just want to add a caveat related to transaction fees. The merchant passes that cost back onto us through the merchandise and it ends up being cash buyers that feel that net effect. Thus even strengthening your point here that it is expensive to be poor.
This might not be the sexiest or most interesting video but it might be the most important one I’ve seen from this channel. Explaining clearly how the system works on a basic level and who it advantages is very important
Here in the Netherlands, most of the big banks banded together to make one ATM where you can draw cash from, no matter what bank you are with. So we don't pay any additional fees at all for withdrawing money, as far as i know.
Nice. Here in Canada the banks agreed to charge a nominal fee of 2$ if you use another banks machine, plus any fees your own bank may charge. It can cost anywhere from 2$-9$ depending where you bank, what type of account you have and what type of machine you use. As in some areas the only machines available are located in private businesses which operate their own service.
Great info for the backend processing fees. You need to also talk about the fees between checking to checking transfers, where the banks make money on those transfers.
THANK YOU as the old saying goes "it's expensive to be poor". EDIT: I feel like I know that music from somewhere...sounds like menu or maybe field music from a video game, but I'm not sure....
This is a fantastic flow of music, format, colors and delivery. It explains why you have so many subscribers and why you will def have more! See you at 1M.
Man, I didn't know it was so bad out there. As long as I keep $5 in my savings account I have no fees at all. I think that's a pretty reasonable demand.
No fees for a bank account, “checking account” in the UK. You put money in you take money out for free. The only fees banks can charge are to do with credit or withdrawing money outside the UK, though most still have a fee free limit
When Clinton signed off on the repeal, that's when we found out there's no difference between Democrats and Republicans. Take a guess what current Presidential candidate voted for that?
6:52 False: I was given the opportunity to make no initial deposit on my Alpine Bank account, and it has no maintenance fees or minimum balance. I made the deposit anyways, but still.
This "that all changed in 1970..." video series is easily one of the most mind blowing video series I have ever seen. It is insane how much of what we have now (system wise) is because of a few greedy people in the 1970s.
"Opening an account starts with an initial deposit, obviously, you can't start an account with nothing." It's so bizarre how differently banks operate in the U.S., here in Sweden you can totally open a bank acount with nothing.
So I love this video KB, and I gotta say, while all your information checks out it just makes me even happier that I am a Canadian, some of the stuff the American government lets slide is ridiculous, speaking as someone who works in both the American and Canadian finance sector.
I remember my first visit to the US being amazed that every ATM charged you for withdrawing money... That seems to be a uniquely American thing - occasionally you'll get an ATM in the UK that will charge (usually in small shops) but no banks charge for that service at all even if you're not with them.
There are pros and cons to everything and every place. I don’t think the ATM thing would be a deal breaker for me though. I still love America even with all its flaws.
I absolutely love every single Knowing Better video. I’m sure few of you are but any new viewers reading this I highly recommend checking out his entire catalog. They’re nearly all A+ quality.
Banks will not serve anyone who walks in the door as long as they have money. TCF Bank in Detroit called the police on Sauntore Thomas, a 44 year old black man, for trying to deposit some checks in his bank account. Ok, so he didn't have much money, but he did have an account with them and they called the police on him for trying to put more money into his account with them. They accused him of trying to deposit fraudulent checks, with their only clue that they checks are fraudulent (they were legit checks, not fraudulent) was that he's black. But what about black people who have a lot of money? Bank Of America (formerly known as Bank of Italy prior to WWII) has a long standing history, some might even say tradition of racism. They called 911 on movie director and producer, Ryan Coogler, whose account with them is around 25 million US Dollars. He was trying to withdraw $12,000 from his account at a BoA branch in Atlanta Georgia. He was a black man with a California ID, in Georgia, trying to withdraw $12,000 from an account registered to him, with the same address as on the ID. He was in Atlanta to film something and needed the cash for his production. Since he's famous and also starting to be recognized in the area due to his occupation, he wanted the bank teller to be discreet, so he wrote a note asking her to be discrete and not say his name outloud. She saw the fact that he even had a note and called the police without even reading it. That's not even getting into the fact that it's a lot more difficult for black people to even get a bank account in the first place. If you're a black person trying to open a bank account, in most cases you might as well be a black person trying to buy a house in an early HOA controlled suburb back in the 1950s.
Gold is also used as a value proxy cause its very difficult do degrade ("destroy") through chemical reaction. Also its evaporation is practically nonexistent - it reliably keeps its mass. Other points: Pure element, solid, requires low volume due to high density, (high "value density").
@@evanstrong6239 A rich man can afford expensive boots that last a lifetime. A poor man can only afford cheap boots that last a year or so. Over his lifetime, the poor man ends up spending far more than the rich man.
Credit unions can be better when it comes to not paying as much. Things like only needing like 5 dollars in the savings account, no fees for using a check and whatnot. Obviously it can depend on the credit union so always check.
"It's expensive to be poor."
Truer words were never spoken.
I think it's more accurate to say "It's expensive to be stupid." Financial institutions aren't limiting access to these things to rich people--it's just that some people don't know about them. And not knowing leads to running into ways that people can nickel-and-dime you out of your money. "A fool and his money are soon parted." And a down-side to our system is that it facilitates that parting better than many other things that it does.
@@onthemerits It's not just that. Let's take something simple like buying in bulk. Though buying in bulk will save you money in the long run, you have to have a larger lump sum up front in order to do so. The poorer you are, the less likely you are to be able to get that lump sum together before you need your item, whatever it may be.
In addition, with certain items, higher price means higher quality, which can in turn result in a longer period of time before the item wears out and needs to be repaired or replaced. In many cases, it's cheaper in the long run to buy a quality item that will last longer than it is to buy a several cheaper items that keep wearing out over the same time period. But to get access to high-quality items, you need to be able to afford that higher price tag up-front.
As pointed out in this video, there's a minimum balance that needs to be maintained if you're going to have a bank account, and going below that costs fees. Again, it's much easier to obtain and maintain that minimum balance if you're not poor.
It's also impossible to safely invest - even in low-risk investments - when you don't have a large-enough emergency fund built up. Putting $100 a month into, say, an unmanaged mutual fund is much easier when you don't need that $100 just to put food on the table, or to make sure the next time your old used car breaks down you can afford to get it repaired. And it's not like you can borrow the money, either, because you likely won't have a good credit score, as creditors won't give you loans or credit cards unless you have a certain amount of assets.
Poverty isn't something people choose. Anyone who says otherwise has no idea what they're talking about.
@@AndrianTimeswift I was poor ("US poor", not 3rd-world poor) at one time in my life. I was a student, with a wife and a few kids--several mouths to feed. I didn't have a Costco card, but my wife and I were still able to leverage coupons wisely and build a food storage--in our poverty--through which we could save up food reserves as well as cash reserves. This allowed us to save a lot of money by only buying things when they were on sale. At one point, through leveraging coupons, we didn't have to restock shampoo for 3 years. It didn't take a lot of money to do that--it did take some knowledge and planning and some financial discipline. Buying low and selling high are market principles that work at all income levels--of course rich people can get more benefit out of those principles, on an absolute basis, but that doesn't mean they don't work for poor people too.
Additionally, I've seen these principles work outside the US as well. I have close friends in very 3rd-world parts of the Philippines. Years ago they lived in a little bamboo/nipa hut with a large pig living under their floorboards. They had 9 kids--11 mouths to feed. Today, after many years of their children working hard in school, many of their older children are already successful and ("poor" again) raising families of their own.
They, justifiably, consider themselves "poor" in relation to me--well, more accurately, they consider me "rich"--and they are correct, nearly every American is "rich" compared to them. However, they don't live their lives with a victim mentality thinking that they are defined by their poverty.
Material poverty has its problems, but it's not the world's biggest problem, by a long shot. The worst problems come with inter-generational poverty--when families are perpetually stuck. And those problems are directly tied to education.
I have been poor. Part of that experience sucked, obviously. But with a "future-mindset" it wasn't a crushing experience. To the contrary, it was refining and I learned quite a lot going through it. I truly wouldn't be who I am today without that struggle.
You say a lot that "it's a lot easier [to do this] if you're rich" and "which is a lot harder if you're poor".
Duh.
Who can argue with that?
But "harder" doesn't mean impossible. And people grow a lot through doing hard things. I know I did. Truthfully, having been in the underclass, I feel worse for those born with a silver spoon. They often don't face the struggle that refines their character. As a parent, I would not want my children to have no understanding of poverty and only know ease. I think wealthy parents would have an immeasurably more difficult time attempting to raise quality human beings. That's a challenge I honestly would not want to face.
@@onthemerits Congratulations on your carbon fiber bootstraps. I'm sure your success story is an inspiration to us all. Meanwhile, those of us who are too busy working to spend hours hunting for coupons and who have no space to store three years worth of shampoo will just have to build our characters so that we can become as saintly as you are now.
Did it ever occur to you that instead of blaming the powerless for their powerlessness, it might be a better use of your efforts to actually try to help them? Of course not. You have such a wonderful character that empathy for those less fortunate than yourself is beneath you.
I'm genuinely glad that you managed to beat the odds and escape poverty, but don't think for a minute that because you and a friend of yours managed to do it that such a feat is achievable for everyone in poverty.
What are the millions of homeless supposed to do? Do you realize how difficult it is to find a job when you have no permanent address? How about the disabled, whom nobody wants to hire or accommodate, and for whom obtaining the welfare they need and are due can take years of struggle? How about all the wounded veterans who have fallen into poverty? Do you think they lack the discipline or education necessary to replicate your feat? And did it not occur to you that a lack of education is often a direct result of poverty?
Poverty is one of the biggest problems in the world today, in the same league as climate change, the looming energy crisis, and slavery. It is a problem created by forces well beyond the control of those who suffer from it. I know people in poverty, and for the most part, they are just ordinary people doing the best they can to get by with what they have. Their characters are not deficient. I can't say the same for the people who, through greed, malice, or indifference, choose to insult the poor instead of trying to help them.
@@onthemerits as much as I agree with many of your points, you still need to understand that the cards are stacked against the poor. It is very possible to get yourself out of poverty, but much of that depends on education and there is also an element of luck involved.
This is why the current education system in the US is so lacking. It too often never teaches any practical skills and knowledge. That and the fact that the readily available public education system is being slowly gutted. The poor often stay poor generationally due to the lack of opportunities for the undereducated, and the inability to receive the knowledge and skills to break the cycle. That and the fact that there culture of ignorance breeds more ignorance. This is obviously still ignoring the fact of there being a need for a poor class of people for there to be a rich one, which is not a particularly good or bad thing, just a fact. Economic mobility is becoming more and more stifled as things continue. The people in control will always want to stay in control, so they are actively fighting against the idea of a meritocracy.
The entire situation is complicated with too many factors feeding into it to easily keep track of.
The fact you didn’t call the shady banker “loaning better” disappoints me. Great video as always though!
I thought KB Morgan was a fantastically clever pun.
*My disappointment is immeasureable and my day is ruined*
Lawrence I didn’t realise that, now I’m impressed instead
@@joerionis5902 I feel your intangible neurotransmitter response. Kia kaha!
🤣
The "having no credit history is worse than having bad credit history." really hits home. My entire life I used cash money to buy everything, cars, motorcycles, pay for my apartments, all of my bills everything. I figured when the time came that I might need to borrow/develop credit I would be good. I managed my money well, budgeted to always spend less than I had, and everything that should be good. Nope. Turns out they want us broke, they want you owing them, you aren't profitable if you aren't in debt.
Nobody is quite as profitable as the re-financer
Nobody is quite as unprofitable as the early-payer (not even the guy who went bankrupt and whose house got adverse possesed when you werent looking)
The fact you Americans have to build up your credit, is a disgrace. I never had a credit card and got a mortgage at ca. 3.5x yearly wage basically the day I was hired at age 23. 🇳🇴
I’m 20 and my mom wouldn’t let me get I credit card until I moved out. The limit was $1000 and my entire life she told me if I couldn’t buy it in cash, I can’t afford it. I paid for my car in cash, and every time I’ve had an emergency I couldn’t afford, my mom would give me a loan because she doesn’t want me using credit from a third party. I’ve never missed a payment and my credit score is 800. I only really use my credit card for gas and food and pay it back before the end of tho month. It’s important that parents drill financial knowledge into their kids, but I was obviously blessed to have parents with money. I couldn’t imagine living in this economy as a 20 year old with parents they live paycheck to paycheck.
@@bigpapi6688i remember my uncle co-signed a card for me, and told me to spend about $100 a month on it
my credit score was ~744 when i opened my bank account after i got my first job
still not quite sure what it means, but i’ve been told it was better than what he had until a few years ago
@@mathiastwp you can't get a mortgage if you don't have any credit!
“The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.
Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.
This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.” - Terry Pratchett, Men at Arms: The Play
Yeah, I hate when that shit happens. The good stuff will save you money in the long run; but, if you can't afford it, you end up paying even more than the good stuff would have cost, because the crap you can afford, falls apart...
GNU sir Terry Pratchett...
My great grandma had a saying that my mother repeat everytime I try to save money by buying cheap things "I'm not rich enough to buy cheap". Like Dishsoap yeah the great bottle is really cheap but the little bottle of a better mark will be far more efficient and thus will last longer.....
My great grandma had a saying that my mother repeat everytime I try to save money by buying cheap things "I'm not rich enough to buy cheap". Like Dishsoap yeah the great bottle is really cheap but the little bottle of a better mark will be far more efficient and thus will last longer.....
PS: They used dollars in the English version? In French version they use piastre an old money XD
Not to mention the poor man would later have medical issues related to wearing bad shoes for ten years. And in the US, that would come with astronomical medical bills, and I HIGHLY doubt his employer would pay him to take the time off he'd need to sort that out.
Post Office Banking is one of the most under appreciated programs that the USA has dumped. I wish it would come back.
It's _so_ expensive to be poor. I used to be homeless, and it costed me so much that I was paying about twice what I'm paying now (as an apartment renter). Much of that was for food, because being homeless requires just having a place to exist, and fast food places will let you hang out if you buy food. And if you don't have an oven to cook with, there is no cheap food available to you, even if you're not spending for time to sit down and heat up in fast food places.
Always the protein part of food was the problem. Non perishable no cook carbs are easy. When I was homeless, despite working full time, protein was precious.
bread and bottles of water (few litres)
Even outside of such extreme as being homeless, it's still expensive. Once I got enough cash to get mortgage, I could pay less to bank than landlord previously AND I'll do it only for 30 years instead of forever.
I live in Poland but I'm sure other places are similar.
@@sleeexs "Bread and bottles of water" (chimes in the clueless guy). Being homeless means being on your feet around the clock, which means you need calories. It also means that you likely don't have any storage except perhaps a backpack (if you even have room for something like a loaf of bread). Why don't you simply trust people who know better than you because they've actually had to live it?
@@Gnidel True. Renting necessarily costs more than owning a home, otherwise it wouldn't be profitable to rent to others. And renting never brings ownership.
"Knowing better” really out here teaching us all the things that we should have learned in school from taxes, rights, to banking. He’s really doing us a huge service by making these videos.
Granted it's been a few years since I graduated high school but the concept of money and doing taxes was taught in economics... so it's taught but whether people pay attention is a different story
@@snbks4ever how fortunate, economics are not even a subject generally taught, it is not the US so I can not tell about there, but here they just teach that to those who take tourism and hotelery only, for some reason.
Me: "Hey teach, can we learn how to do our taxes or to properly set budgets?"
Teacher: "No can do, we're learning the quadratic formula today"
@stockart whiteman Maybe different states do things differently, I mean for all I know even my state has changed too which wouldn't surprise me. I do wish I had things like this back then because trying to learn about this stuff at 9 in the morning was never the easiest and agreed there really is no standardization
@Average Joesson
You would think so, but its not so simple
Most Americans don't have a budget at all, they just buy what they need living paycheck to paycheck wondering why they can't save anything
2020 is the year KB started talking to his piggy bank.
In Pandemic Self Isolation, it's fairly normal and not necesserily reason to worry if you talk to your plants or piggy bank or what not.
It's when it talks back, that you'll need to call a crisis line.
2020 is the year his piggy bank started talking back.
I like your presidential election series
Completely off topic but, bruh I thought you were Mr. Beast, and I was like nooo fuckin way he watches KB lol.
Go outside! I know this pandemic is bad but stop acting like this is an actual quarantine, we have masks and can help when going for a walk
Having no credit history is worse than having bad credit. I couldn’t believe it when it happened to me. I was literally being punished for having been totally responsible. After that it was no mystery to me why so many people are irresponsible with money: our system actually encourages, in fact incentivizes, bad monetary habits.
It's a weird one in so far as you can do it without putting yourself in a bad situation, but it always involves putting yourself at risk where there didn't need to be any. You can get a decent credit score by using a credit cars for your daily transactions and paying it off every month, but you pay way higher fees for a credit card AND they always give you a limit that's honestly just a bit too high to feasibly pay off all at once from your paycheck without savings. So you have to have proper self-control.
Evil that that's the system, but it can be done. Just in a way where they dangle the carrot of consumer debt in front of your face literally constantly though.
@@chloedsmith This is what I did. I lived with a budget and paid off my credit card every month in full. This was the only "loan" I had, and it paid off. My credit score was really good, and my husband and I were able to buy our house with a very low interest rate.
It might take longer to build up "good credit" this way (I wasn't really checking my credit score constantly), but I'm pretty sure it was always in the 700s. I got my credit card at 18 and paid it off in full every month, and we bought our house when I was 27. We still pay our credit card in full every month, and it's been 20 years. It is possible!
@@chloedsmith The thing is that this debt that is dangled in front of you, eventually breaks off the line and then it compounds. It's not even about frugal spending, it becomes about a medical emergency or a crisis that lands you a few thousands dollars in credit debt. Now you can't pay that and thus it compounds on top of your regularly monthly/annual credit debt, right? Then there's the problem of trying to plan financially, but prices keep going up whilst wages stay the same. So now, wages are the same but prices and credit interest rise in pretty much a smooth slope. What you could afford a year ago to take on credit, maybe you can't afford that anymore and that credit debt now accrues. A good example of this is mortgage premiums. The average mortgage premium since 2019 has almost doubled. That's how they catch you with credit debt. You plan and plan but prices go up whilst your base income remains stagnant. Now, it's a different thing for the middle and upper middle class because there usually exists some form of safety net, right? You're not usually betting on credit with every last dollar. If you spend frugally, you may be alright and accumulate decent credit because you also have disposable income to buy in cash instead of credit. If you're poor and have a credit card, you're more likely to spend alot more on the credit card because you don't have cash to buy in bulk or to spend throughout the month. So you put it on the card.
Poor people need credit to survive, middle and upper-middle income people have the freedom to use credit as a means to bolster their financial profile in the eyes of banks and lenders. The more money you start with, the more credit can help you. But the less you start with, the more it will hurt you.
It's not really that at all, you're making it sound intentionally malicious like they want to punish you when thats really not the case. You want to borrow a large amount of money in order to make a responsible but large purchase. Say a home. Before they let you borrow this large sum of money, the bank wants to know how good you are at borrowing money and paying it back. That's why they look to see if you have any history of borrowing money. If you have no history, then you're a complete unknown, and thats understandably kinda terrifying for the bank. So they charge you more interest.
If you were genuinely irresponsible with money, you are not rewarded for that. If you're irresponsible, you spend more than you can afford and you start to accumulate debt. Lets say, credit card debt. At some point, the interest payments and minimum payment each month get too big that you can no longer pay it, and you miss a payment. Thats when you get hit with the credit score penalty.
As for you living life only on your own money, that's great. That's respectable. It's nice to see that you are responsible with your own money. But would you also be as responsible if you were using somebody else's money? If you could suddenly have access to 10K in credit from your credit card, would you go off the rails and go on a shopping spree? Being responsible with your own money is not the same as being responsible with other peoples money. That's why they need to see a history of borrowing other peoples money, not just a history of spending your own money responsibly.
“It’s expensive to be poor” that’s the truest statement I’ve heard in a minute man. Not only financially expensive but educationally, property-wise, environmentally, etc. It feels like a trap to keep the poor people poor and the rich folks rich🤷🏾♂️🤷🏾♂️ but what do I know
Apparently you know a lot.
@@bongwelll Agreed.
I empathize with Pig, I too have to deal with people just not getting simple concepts like having a literal-slash-metaphorical battle with an evil copy of themselves. It's incredibly frustrating.
1:41 made me chuckle, really added to the video. More skits!
"Sure...I'll hold on to your money." Perfect delivery!
im 28 and didnt know over half of how this stuff worked, yet understand it all of what you said in a 25min video.
why wasn't 30mins of my education time spent explaining this?
Because trigonometry is more important, apparently.
Because that's how education works in US. Politicians and big corps want to keep people stupid so that they can keep their scam game running forever.
To be fair, I've had a lot more use for algebra as an adult than I've had for knowledge of how banking worked.
I had to get a bachelor's degree in accounting to learn this. BS, I know
It is not the job of the education system to teach you how to do every single thing.
I’m so lucky my parents and I opened a joint credit account as soon as I was old enough. They kept the card and would use it for things I pre-payed them for. They also used it for things such as school supplies, but fortunately didn’t give me full access before I understood the importance of both using the card yet paying it off each month.
They also helped me open a Roth IRA at 16 when I had my first “official job.” I wasn’t able to deposit much, but they explained the importance of time. I was so fortunate to have parents looking out for me and with the ability to help me out. I never had a car until graduating from college- but they helped put in a few extra bucks to my IRA that would have gone to a car or insurance.
I understand that my boost up in life is quite privileged. It did mean I didn’t have all the “nice things” my friends had (boo hoo- I know). I’m so sorry basic finance wasn’t covered by my high school. I feel that a course in money management (as well as statistics/data literacy) would have been invaluable.
You don't educate your slaves. That is why they don't teach finance in public
schools.
Very well done, as someone who works in the banking industry you really nailed it. It's so frustrating to see people get caught in debt traps because they do not have enough money to be deemed important to the traditional banks.
Great video!
You’re back! Love your videos, I was just checking your channel yesterday to see if you uploaded anything recently I might have missed.
When did he leave? I just assumed it takes a significant time to research these videos. He also might have another employer/job as well as a personal life.
Yes, he does. I think he has a channel in Nebula? He posts his old video in YT.
He does monthly uploads
@@marcusjackson5837lol do you fuckin think they're getting literal billions from inflation
Just so everyone knows this was one of Andrew Yang’s many proposals, starting up the postal banking again would be greatly beneficial.
I liked Yang, I just didn't think UBI was going to work without stiff implementation of rent controls. You cannot play nice with those policies, and frankly I dunno if he could handle the right wing right now.
@@DuoXCity i think he could have done alright. Afterall, he wouldn't have to face them himself all the time. He could get an ideological supporter who's a bit tougher to deal with them.
@@DuoXCity i think he's one of the better candidates to handle the right wing because he's happy to talk about business, finance and economics. even shaprio seemed to have some respect for him in this regard.
Yang: "In other countries, you can get a lot done at the Post Office aside from mail. We should follow suit here in the U.S.-it would reduce costs for consumers, make Post Offices more vital, and provide financial services in rural areas."
Bernie: "We must ensure all Americans have access to basic financial services and end the exploitative practices of these modern day loan sharks. We will utilize the 31,000 post offices across the country to provide basic banking services. This isn’t radical, or even unusual. More than 1.5 billion people across the world have access to some form of banking at their local post offices. In fact, we used to do it here. From 1911 to 1967, you could bank at your local post office in the United States. In the middle of the 20th century, our postal banks serviced 4 million customers."
Wither would've been better than Biden :X
Justin Barnes why does UBI need rent control? Rent controls only cause average rental prices to increase faster than they would otherwise (look at SF and NYC, rent control artificially decreased supply of affordable housing, driving *up* average rents) but even if rent control could be implemented in a way that keeps the available pool of housing big enough to match demand, why would UBI play a role?
I'm getting a bit depressed about how the solutions to these problems were already put in place in the past and then removed! The Glass-Steagall Act (removed in 1999), the postal banking system (shut down in 1967). Why is it so difficult for people to recognize when something just works and support it? Oh, right. We wouldn't want EVERYBODY to prosper, would we? That would be SILLY! Now I'm really depressed! Thank you for your usual excellent job explaining complex issues in a way that most people can understand.
Boomers got theirs, then scrubbed worker and impoverished protections and services when they didn't need it anymore, and started caring more about their investment portfolio.
From everything I've heard about from KB and other sources, the USPS was profitable pretty much until the government stepped in and fucked around with it. I don't understand how boomers or anyone could conceivably vote to damage it, especially since some boomers would have grown up with USPS banking services. I think the main issue wasn't people voting against their best interests, but rather elected officials doing some shady back-handed deals with banks and postal companies like FedEx and UPS.
@@lego501stTrigger I believe the usps was fucked with was because they had been putting their retirement on to the federal gov. and the reason that it was changed was because the feds just wanted them to deal with it, plus pay the feds back. That's why the debt is so high. Take that with a grain of salt though I only read a couple of articles
@@andrewputnam2717 the usps was fucked with because they are a successful government program/department/whatever that has a high approval rating with the vast majority of the population. and when your parties dogma states that "government is always bad" your only solution is to kill the parts of government that are well liked. that's really all there is to it.
What's really crazy is living in the UK, seeing these failures happen in the USA, then hearing people here suggesting we do the same.
I don't pay for my bank account. I'd like it to stay that way.
As someone who's not from the US, I find it fascinating, creepy and terrifying when I hear people talking about credit scores.
Jarvi : it works exactly the same in Canada and probably in most of the so called "developed countries".
As someone who's from the US, so do I
My best friend is Danish and she was horrified when I mentioned getting a loan on a car I could otherwise afford to build credit.
@@ironeleven I'm sorry but she was right. An auto loan is probably the worst possible way to "build credit". Purchasing a depreciating asset that you can afford without credit, at a 10-15%(if not more) interest rate is honestly insane. Whatever credit you built is completely lost in not only interest, but the depreciation of the car.
Like financial advisors are usually against financing a car at all, especially if you can afford to purchase without financing. I seriously hope you bought the car outright..
In Australia, we have credit scores but they don't affect how much interest you pay, just whether you get the loan approved. That said, of your credit is bad enough that you can't get a regular loan, you will end up having to go somewhere that charges more.
Also, there's no need to "build credit" here because you credit report only covers "negative" events like missed payments. No credit is exactly the same as perfect credit.
*People have no idea how expensive being poor is: Late fees high interest rates payday loans, no opportunity to invest in markets fees from credit cards, bus fares high ins premiums, no opportunity to open a business, or by and sell things, the list goes on and on its why its so hard to get ahead*
The answer lies in the very phrase "get ahread".
You need someone behind you for you to be ahead and it is in your best interest to keep the ones behind you for you to be comfortably ahead
overdraft fees
I wish I could like this more than once. No really, this video is fantastic. I actually work in the financial services industry and I wish more people knew about this stuff. The price of being poor in the United States is so high it perpetuates poverty. It's a catastrophe.
I'm happy to not live in the US. Since I was 13 i have had full control of my bank account. No fees until i turned 20, i have right to buy mutual funds for no extra fee, and it includes a stock portfolio for no extra fee.
Only costs I have ever spent is small maintenance fee for having a debit card, but that wasn't until I turned 20, even though I had it earlier.
No hidden fees, access to debit card, savings account, mutual funds, stock portfolio. No different how much you have in the account, you can literally have 0 dollars in your account and 0 income, I had that as a teenager, they will not close it or put a higher price for it. You don't get extra rewards for being a big spender. This is all standard for all bank accounts, regardless of bank. To me all of this information is worthless, all I can do is sit and wonder how it I legal.
The economy is a joke and a lie. We don't live in a meritocracy.
I love the medical warning that comes with the money card.
“I see you doing the math in your head, stop!” Is what everyone selling anything says.
I don't know how I got here, but I love "Twin Peaks" too. Keep up the good work, KB!
As a CSR (Teller) for Bank of America who also sometimes wears less vibrant shades of green - well done. Please come in and educate my clients you're much better at it than me! Absolutely love your channel, dude. You've helped me learn a lot over the years.
Knowing Better, bringing Civics class to the masses... with much better presentations.
Why was this a day ago
@@awesomelegobatman hmmmmmmmmm
YOU AND YOUR LIES WILL NOT PERVADE ME YOU LIAR
@Ragnar thank you
@@awesomelegobatman Patreon early access probably,something like that
EDIT: I stream Sundays and Tuesdays, catch me then!
I'm live on Twitch right now, answering questions and giving director's commentary - twitch.tv/knowingbetteryt
AAAAAAAAAAAAAAAAAA
Please upload stream here later, for those who don't use twitch
I was just rewatching the Oil video when you uploaded lol, you just temporarily cured my depression
Knowing Better needs to do a video about ecosia they are a search engine that plants trees with their profits
You might be an average person, but amazing video quality.
Slight omission at 7:50. The "six withdrawals per month" limit on savings accounts only applies to card and electronic transactions. You can still walk into the bank and get money out from the teller as often as you like. (The limit is just meant to discourage using a savings account like a checking account, not to deny you access to your money.)
Depends on the account. There are some savings accounts with higher interest rates that you aren't allowed to withdraw from at all for x period of time.
@@tgrules565 That sounds like a CD, not a savings account.
I think the limit was removed with the COVID-19 stimulus bill but I’m not sure if it’s permanent.
Justin Adams yeah it wasn’t a part of the stimulus bill, just a statement from the Fed saying it doesn’t exist anymore.
Yeah, it depends on the account, at my bank, if you do more than two withdrawals in a month, they close you savings and put it all into your checking.
One thing that isn't mentioned is that holding money in hard currency or an account with interest lower than the inflation rate means you are LOOSING money the longer it sits.
Time value of money is one of the hardest concepts for people to grasp if they don't understand finances in general.
@@TheRealMeatwad So...there isn't a single investment option banks offer that beats inflation
So savings accounts are all worthless
I can't thank you enough. This video came out just after I turned eighteen, and it's the reason I have outstanding credit. I have a couple high end credit cards with thousands of dollars available, but my last couple jobs handed me a debit card thinking I was going to use that to pay my bills. Life can be amazing, even without any degrees, license, certifications, or active service.
To think, he could've called his doppelganger Spending Better
In Canada, the rules regarding credit unions have changed over the years. You no longer have to be in a particular occupation to be a member anymore; the rules were changed so that you only had to reside in a particular community. That has since been changed as well (at least in the Province of Alberta) as there is at least one credit union that has branches province wide.
alberta govt treasury branch also operates as a retail depositor. in the usa there is the bank of north dakota - govt owned/operated and gawd help the politician that proposes "reforms" to it: said parasite will be out of a job even if it means doing a "recall" and turfing him. it's been done decades ago and the bloodsuckers in our leg and governor's office know enough to avoid it altogether.
ps canada has much tighter rules on your banks than in the usa. here it's a free for all anyway they can get away with...
Omg these videos are making me such a nerd. As he started to build up to postal banking I got hype af. I audibly shouted “postal banking!” and when his outfit changed I popped off lol.
I wish I would've found this channel when I was homeschooling my son. But glad I found your channel now. He's back in public school and graduating this year, at just 16 years old. So proud of him 😊. I share with him now, and my other boys.
Knowing better, I do have a real question - I’ve found all of your videos so informative I was curious what your research gathering process is? You are so well researched that I’m surprised you can put out videos as regularly as you do.
"KB Morgan" haha. Love the nametag! I like to see the return of the nerdy voice of the nerdy character you liked.
2:57 The effort put into making fake bank cards is appreciated greatly XD
I lived in Japan for a while, and despite making a rather low amount of money, I was still able to easily do my banking through the JP Post office. Conveniently, the main office was on my bus route, only a block or two from my job. It made my entire life there so much easier, as it was a nationwide service, allowed my employer to pay me via direct deposit, and they had tons of ATM's. After seeing how well it worked having banking and insurance services through the post office, it made me wonder why we didn't have it here in the US...
My guess, ideology. The end of postal banking 1968 coincides with the rise of neo-liberalism in western democracies.
@@SemiDoge Sorry, but no. Neo-liberalism had nothing to do with it. Quite the opposite, actually. Postal banking ended in the US because not enough people were using it. Postal banking was created before there was the FDIC to insure deposits so your money was guaranteed by the full US Gov. The peak of postal savings was 1947. From there on it was a steady decline until it just didn't make sense any longer. With the financial and moral failure of 'Big Banking' these days and the ensuing banking deserts, it does make sense to bring it back even if it isn't profitable. Because that was government is for; to provide service to its citizens. ALL of its citizens, not just the wealthy ones.
Man, I always learn so much from these videos. These are like PSAs. I gotta look more into postal banking. Thanks for the excellent content! Stay well out there everybody, and Jesus Christ be with you friends.😊
"The Big Short" is an great movie for anyone interested in the complexity of the 2008 recession told in a realistic way.
nah, just ask friends to watch the first 10 minutes, just that. giggity giggity (they'll be sold for the rest of the movie)
@@upublic are you Australian?
Love how he can talk with confident about shaky things like the cause of the great depression
My least favorite/actually favorite question: "Are you the homeowner?" When getting a sales call... my reply: "If I went to the grocery store, and attempted to leave while only paying %5 up front, would you say I owned those groceries?"
Noone ever owns a home unlesx you're rich enough to pay it off & have enough cash set aside for propertytaxes foryour life's remainder
Well, not to be 'that guy' ... you own the home. The seller got paid. You have a large debt to the bank.
People do go to a store, use a credit card, money they don't possess goes to the store owner, and you have a debt to a bank. Everyone consists them your groceries.
You pay for it in full, you're just paying back a loan every month
@@pmcgee003 You have a large debt to the bank, why? And if you fail to pay, who gets the home? The owner, which is the bank.
......So wait are you saying we own the grocery stores now? HEY, FAM WE HALF OWN OF WALMART!!! HORSES FOR EVERYONE!!!
“I see you doing the math in your head; stop!”
Hahah this channel has the best one liners
Damn!
I'm working my way through your entire back catalogue in chronological order, and your videos are just getting better and better.
As soon as you started to mention payday loans, I instantly got mad. I used to work at Experian Credit Bureau, in the past, which got me a LOT of training about finances, and payday loans were by far the worst plague on the American people. It's just evil.
I really wish financial literacy was taught in school.
Financial literacy classes sound nice, but realistically most people wouldn’t pay attention making them a time sink.
It’s not hard to learn by yourself in the 21st century. They don’t teach you how to brush your teeth in school so they shouldn’t have to teach you finance.
Yo, KB! When are we getting the *Moderate's Guide to Ferrets?*
He actually made a video about ferrets a while ago
Man, this video is loaded with all the information I've been asking Google for the past 2 weeks. Thanks to the UA-cam's algorithm this video found me (this is fascinating and terrifying) and thank you very much for putting all this information together.
I might recommend asking Reddit's personalfinance community. It's got an amazing wiki for describing the most common next steps to make, from if you should pay the rent vs the gas to how much you should be investing in a 401k. If it's not in the wiki or you don't understand the wiki, the people there can answer just about anything else, up until the answer becomes 'hire a tax attorney'.
@@tylerpeterson4726 Awesome! Thank you for this info. I'm checking that out.
Be sure to subscribe and stick around. His content is among the best, if not the best.
Well.....if you use Google, and their products...they have been collecting and using the data they've obtained on you to help you.....track you......build a profile On you.... AND to send advertising your way. I highly recommend watching The Social Dilemma on Netflix ;)
Ps-----There are alternatives to Google searches and products that don't track you.... Duckduckgo Firefox Use another email program other than Gmail, etc.....like protonmail.
@@St3veWK I'm shaking on a corner after watching The Social Dilemma and The Great Hack (both on Netflix). Thing is if you think about it there's not a really way out. It's either being part of it or giving up on everything to be caveman/cavewoman harvesting your own food (not even sure that's a possibility in the world we live in now).
Banks don't create "money," they create debtors who theoretically owe an amount that can be leveraged against. Your debt is your bank's asset.
Is that not money? I mean at least the asset's value is based on something. *coughs in $$$*
I guess you are confused about what he means by "Money". Think of it this way, debt is an asset that a bank owns because it is an asset it has value so thus banks create value. Money however is just a way to express value in numerical terms.
That's how you create money. You don't drive a car, you drive a four wheeled vehicle.
I agree. If i give one dollar to a bank, for accounting purposes the bank has 1 dollar in assets and 1 dollar's worth of debt (who it ows the depositor). If they lend that one dollar out, they would have 0 dollars in asset and 1 dollars worth of loan asset. So at the end of the day, the bank created financial instruments, not money. If I create a toy worth 10 dollars, I didnt create 10 dollars, just a toy thats worth 10 dollars.
Same as banks, they created a loan worth 10 dollar. If they actually created money, there wouldn't be bank runs.
That said, the video was pretty good!
@@Threewisejavi Dont the banks in the US need to keep 10% of deposits as reserves?
In any way the money comes from the fact that, if they lend another customer the remaining 90%, the balance on the first account will be 1$ but the bank will create another 90 cents on the second account.
Now there are 2 accounts with 1,90$ total that can be spent by the customers.
But it gets even better: If the loan of 90 cents is used to pay for something and lands in another account, the banks can take the 90 cents and use it as the basis for a 3rd loan of 81 cents.
A deposit can increase the money supply by up to 10x.
But since banks are only required to keep ~10% of their deposits as reserves they´ll only be able to pay 10% of their customers balance in case of a bank run.
Postal Banking is great from a government finance perspective as well. In developing countries where raising debt for government spending is an issue, post offices offer many saving schemes with decent interest rate (6-8% in India which has a inflation of 5-6%) and payment services and the cash stored this way essentially goes into special government bonds.
3:27 Lol "My rates are... competitive" this reminds me of ads for jobs on craigslist that just list the compensation as "competitive"
here we see a war veteran educated in history and psychology slowly completing his descent into ~madness~ acting. how this happened is unclear but we will try to uncover the reasons behind this strange occurrence
Since you mentioned Patreon: I was surprised to find out that they only take US credit cards and Paypal. Like wtf, your only job is to transfer money and you don't offer european default payment options like SEPA-withdrawal or even just advance payment transfers?
Patreon is based in the US, they don't care about the rest of the world. duh
Ko-Fi is better than Patreon anyway. Most of the creators I support use Ko-Fi rather than Patreon.
Come for the fuzzy ferrets - stay for the ability to know better
If I remember correctly, you have a whole video on the post office and a huge segment of that is about postal banking. The short snippet you had at the end of this video sold me on it even more.
Hey Better! Fantastic video as always. As a Twin Peaks fan, your commitment to the bit for this series has been awesome.
Also, just to let you know, I don't think this video was sent to my sub box/recommended to me. I found it by randomly checking out your channel.
We must keep moving, we must still going if you can't fly you run if you can't run you walk if you can't walk you crawl, we must keep moving
we are all in United state man nothing can give you money if you don't work you got that
Bicton trading is all over the world now man
@Brian Thorp8 you are asleep dude
It is very profitable, I made a good profit of $23000 USD with a capital of 4,725 USD on my last trade and I have made over 750000 USD trading bitcoin
I have always have interest in Bitcoin but keep getting discouraged by my wife. I really want to invest please I need assistance, any recommendation?
Saving money? Oh, oh no. Yep, there's a tax for that
Dude, Uncool
Who punished him severely
Wrong channel but i see you are a man of culture
The most ambitious crossover event in history....
Stop appearing everywhere
Worth the wait... Even for a Canadian whose banking system is different and somewhat more resilient (so far). Great work as always.
Sir, I don’t always agree with you. But that’s why I love watching your content. As you lay out information, link sources, and allow people to make up their minds. I may not always agree with you but I respect your dedication.
Great video as always! Never stop making these, please. You have this great ability to distill complicated topics into a few important core points that make it really easy to get a base level of understanding.
This is a bit cursed, but:
You're the father I never had, please keep up your work. You are a voice of reason that comforts me
I'm a broke genZ individual so I can't give you anything on patreon - but I actively share your videos as much as I can. Be safe my dude.
Bettercash: "We are .... competetive?"
25:05 "you are free from this place"
Nooooo - you must stay and educate us. Please!
As a co-owner of an independent pizzeria that accepts VI, MC, AMEX & Discover, the most interesting part of this for me is that I am helping to fund reward cards with the processing fees that I am paying. Yikes!
Thanks KB, for making sure I know better!
In the UK its rare for a bank to charge for a bank account, and as you said the post office offer banking services, but they also allow you to access certain private banks over the counter!
Cashback cards are quite uncommon though.
Raise your hand if European and shook at how high the fees are
They're about the same in our country (gonna guess your name isnt random gibberish and is polish) they're just scaled to value of our currency which has comparable buying power in our country as dollar has in the us. Meaning u can get same thing for 20$ as you can for 20pln (plus minus some change ofc)
I'm Chilean and truly shocked about that fees. The two biggest banks here (state-owned BancoEstado and Banco de Chile) have zero maintenance fee debit accounts with some fees from things like withdrawals (but in the order of fractions of a dollar per operation) and no requirements of having always money in the account, with the two main requisites as a) Having a national ID number and b) Being 18 years or older.
There is at least one bank with a requirements for a zero maintenance fee debit account (Banco Ripley) but most people can accomplish those, and some others with some fees always under 4 USD a month (or in the credit union Coopeuch, which isn't really a fee but a participation quota); and some new neo-banks (Tenpo, Mach, Superdigital, and others) with few requirements and mostly at zero maintenance fee.
And with that ongoing pandemic that was important, because the government distributed payments almost entirely electronically, so it could avoid overloading banks with people.
Don’t believe everything you hear. There are many free checking accounts. I’ve never paid a dime for any account. I’m definitely not rich.
@@blueoval250 literally me watching the video. Who pays these fees anyway? I've never had these fees, minimum monthly deposits or amounts, or any of these other fees. I've never had a student or vet account and Ive never had these fees waived. If you just shop around at more local banks rather than the big BofAs and Chases it's pretty easy to find accounts without ridiculous fees.
@@Cman5687 not to mention BOA will repose your house even if you don’t owe them money, then they’ll fight you in court and when you win they’ll refuse to pay. True story.
Thank you for doing a video on all this. This entirely is what I wish my high school taught me, but never even attempted to
I am new here, and I love your vids so far, KB.
Just want to add a caveat related to transaction fees. The merchant passes that cost back onto us through the merchandise and it ends up being cash buyers that feel that net effect. Thus even strengthening your point here that it is expensive to be poor.
This might not be the sexiest or most interesting video but it might be the most important one I’ve seen from this channel. Explaining clearly how the system works on a basic level and who it advantages is very important
Here in the Netherlands, most of the big banks banded together to make one ATM where you can draw cash from, no matter what bank you are with.
So we don't pay any additional fees at all for withdrawing money, as far as i know.
Nice. Here in Canada the banks agreed to charge a nominal fee of 2$ if you use another banks machine, plus any fees your own bank may charge. It can cost anywhere from 2$-9$ depending where you bank, what type of account you have and what type of machine you use. As in some areas the only machines available are located in private businesses which operate their own service.
Great info for the backend processing fees. You need to also talk about the fees between checking to checking transfers, where the banks make money on those transfers.
Only men of culture use the North Korean Won
Wow! There were rumors you were in a bunker somewhere. Good to know my favorite monster/dictator/despicable person isn't hiding!!
Moon Jae In may disagree
I think you mean "All men..."
Let me say, oh mighty chairman, that I want to like your comment, but the number is too nice right now.
Slava!
THANK YOU as the old saying goes "it's expensive to be poor". EDIT: I feel like I know that music from somewhere...sounds like menu or maybe field music from a video game, but I'm not sure....
Sounds like Get Lucky by Daftpunk
I have never laughed so hard at an intro before... Absolutely love your videos man so glad that you're back
This is a fantastic flow of music, format, colors and delivery. It explains why you have so many subscribers and why you will def have more! See you at 1M.
Man, I didn't know it was so bad out there. As long as I keep $5 in my savings account I have no fees at all. I think that's a pretty reasonable demand.
You've probably got a student one then, or just a damn good credit union.
Yes, at my credit union is the same. I'm not a student, but it is a university credit union.
No fees for a bank account, “checking account” in the UK. You put money in you take money out for free. The only fees banks can charge are to do with credit or withdrawing money outside the UK, though most still have a fee free limit
I have to keep 25 in my account, but yes, Great Basin FCU. Amazing company, even if I move I'll likely keep them.
Almost like credit unions are clearly better than for profit banks...
I knew "Glass Steagall Act" was something that was good; It took less than a decade figure out why.
When Clinton signed off on the repeal, that's when we found out there's no difference between Democrats and Republicans. Take a guess what current Presidential candidate voted for that?
@@ernststravoblofeld ugh so tired of corporate politicians.
@@syntheticteapot They are a logical step on the capitalism path.
Our system just should not exist. Life is unnecessarily complicated because of this system.
6:52 False: I was given the opportunity to make no initial deposit on my Alpine Bank account, and it has no maintenance fees or minimum balance. I made the deposit anyways, but still.
This "that all changed in 1970..." video series is easily one of the most mind blowing video series I have ever seen. It is insane how much of what we have now (system wise) is because of a few greedy people in the 1970s.
"I see you doing the math in your head, stop!" might be one of my favorite KB lines of all time
The birth of our friend KB Morgan
Federal reserve: *He He* Money printer go BRRRRR.
Great to have you back, KB! Hope you had an awesome, well-earned vacation... but selfishly, love the video and can't wait for more to come!
"Opening an account starts with an initial deposit, obviously, you can't start an account with nothing."
It's so bizarre how differently banks operate in the U.S., here in Sweden you can totally open a bank acount with nothing.
So I love this video KB, and I gotta say, while all your information checks out it just makes me even happier that I am a Canadian, some of the stuff the American government lets slide is ridiculous, speaking as someone who works in both the American and Canadian finance sector.
Smooth audio dub correction at 21:21
(Looks like KB said 25% again, then had to re-dub 75% over the top in post)
I remember my first visit to the US being amazed that every ATM charged you for withdrawing money... That seems to be a uniquely American thing - occasionally you'll get an ATM in the UK that will charge (usually in small shops) but no banks charge for that service at all even if you're not with them.
There are pros and cons to everything and every place. I don’t think the ATM thing would be a deal breaker for me though. I still love America even with all its flaws.
Eduardo Gutierrez not a deal breaker, no, but poor customer service at least
I absolutely love every single Knowing Better video. I’m sure few of you are but any new viewers reading this I highly recommend checking out his entire catalog. They’re nearly all A+ quality.
It's always a real treat when a video comes out
I’ve watched this video three times and I still can’t stop laughing at “Sure... I’ll hold on to your money”
I’m so early William Henry Harrison is still aliv- never mind
That is hilarious!
Banks will not serve anyone who walks in the door as long as they have money.
TCF Bank in Detroit called the police on Sauntore Thomas, a 44 year old black man, for trying to deposit some checks in his bank account. Ok, so he didn't have much money, but he did have an account with them and they called the police on him for trying to put more money into his account with them. They accused him of trying to deposit fraudulent checks, with their only clue that they checks are fraudulent (they were legit checks, not fraudulent) was that he's black.
But what about black people who have a lot of money?
Bank Of America (formerly known as Bank of Italy prior to WWII) has a long standing history, some might even say tradition of racism. They called 911 on movie director and producer, Ryan Coogler, whose account with them is around 25 million US Dollars. He was trying to withdraw $12,000 from his account at a BoA branch in Atlanta Georgia.
He was a black man with a California ID, in Georgia, trying to withdraw $12,000 from an account registered to him, with the same address as on the ID. He was in Atlanta to film something and needed the cash for his production. Since he's famous and also starting to be recognized in the area due to his occupation, he wanted the bank teller to be discreet, so he wrote a note asking her to be discrete and not say his name outloud. She saw the fact that he even had a note and called the police without even reading it.
That's not even getting into the fact that it's a lot more difficult for black people to even get a bank account in the first place. If you're a black person trying to open a bank account, in most cases you might as well be a black person trying to buy a house in an early HOA controlled suburb back in the 1950s.
But "white privelege" doesnt exist. This is what people mean by "The system". Smh
Gold is also used as a value proxy cause its very difficult do degrade ("destroy") through chemical reaction. Also its evaporation is practically nonexistent - it reliably keeps its mass. Other points: Pure element, solid, requires low volume due to high density, (high "value density").
Currently taking a college course on the banking industry, everything you said here is accurate, made for a great review. Great job!
"It's expensive to be poor!"
Have you ever heard about Sam Vimes "Boots" Theory of Economic Injustice?
Explain
@@evanstrong6239 A rich man can afford expensive boots that last a lifetime. A poor man can only afford cheap boots that last a year or so. Over his lifetime, the poor man ends up spending far more than the rich man.
@@leonrobinson8180 ohhhhhh I've heard this one before I just didn't know it was called that
Lol love how 2008 is considered "Back in the day"
When life gets tough just tell yourself, "I've decided to become rich."
I really love that when he has to explain really any government institution he just ends up in Twin Peaks
Credit unions can be better when it comes to not paying as much. Things like only needing like 5 dollars in the savings account, no fees for using a check and whatnot. Obviously it can depend on the credit union so always check.