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The Painful Realization That Your Family Wasn't Poor—Just Bad With Money

MarketDash Editorial Team
9 hours ago
A man in his late 20s discovered his family's financial struggles weren't caused by the Great Recession, but by a series of disastrous decisions. From adjustable-rate mortgages to worthless degrees and failed restaurant ventures, he's now helping his parents plan for retirement while confronting a past they still refuse to acknowledge.

There's a particular kind of clarity that comes with distance, especially when it involves money. For years, a man now in his late 20s believed his family had been crushed by the Great Recession like so many others. They bounced between apartments, scraped by on odd jobs, and eventually fled Los Angeles for the cheaper High Desert. It felt like circumstance, like bad timing, like being in the wrong place when the economy collapsed.

But recently, while helping his parents plan for retirement, he started piecing together their actual financial history. And that's when everything clicked into place. They weren't poor because the economy failed them. They were struggling because they made one terrible financial decision after another.

When Every Fork in the Road Leads to Disaster

Now living comfortably in Los Angeles with an upper-middle-class lifestyle, he laid out the full picture in a Reddit post on r/povertyfinance. "So much of our struggles were just self-inflicted," he wrote, and then proceeded to catalog the damage.

His father bought a house in 2005 with an adjustable-rate mortgage he couldn't actually afford. "He was basically the poster child of what went wrong," he explained. When the rate adjusted upward, they lost the house. Around the same time, his dad used a construction bonus to buy a brand-new truck, which was promptly repossessed when he couldn't keep up with the payments.

His mother, trying to help the family's financial situation, took on $15,000 in student debt for a degree from a for-profit school. "The degree might have well been written in crayon for all it was worth," he said. And an inheritance from his grandfather that could have stabilized everything? Lost in a failed family restaurant venture.

"There was a good choice and a bad choice, and they repeatedly made the bad choice, over and over again," he wrote. The hardest part, though, isn't the past financial carnage. It's that his parents still won't own any of it. "They still have this idea that they were blameless, that they did what they had to do, and that everyone else either tricked them or took advantage of them."

The Comments Section Becomes Group Therapy

The post struck a nerve. Hundreds of people responded with eerily similar stories of discovering their childhood poverty wasn't inevitable, just preventable.

One person remembered thinking their family was poor until learning their father spent $1,000 a month on alcohol during the 1980s and 1990s. "I can't imagine how different my childhood would have been if rehab would have stuck," they wrote.

Another commenter said their dad burned through $20 a day on beer and $50 a week on cigarettes while constantly complaining he couldn't afford to pay for his kids' activities. Others shared stories of parents funneling money into lottery tickets, multi-level marketing schemes, and impulse purchases while rent, groceries, and medical bills went unpaid.

Several commenters connected the dots between financial chaos and mental health issues. "My mom HAS to be mentally ill to let her 5-year-old kid be homeless multiple times because 'someone is coming to get us,'" one person wrote. Another recalled a mother who somehow burned through $220,000 in just two months, likely due to an undiagnosed condition.

One commenter described parents who racked up massive debts purely to maintain appearances. "They wasted ALL their money on making sure they didn't look poor. Nice clothes, my mom's designer makeup, shoes, a nice car, purebred dogs."

Finding Agency in the Chaos

Looking back, the original poster said growing up in that financial instability actually taught him something valuable. It wasn't just a masterclass in what not to do, though it was certainly that. It also forced him to develop independence and resourcefulness.

"Honestly, I think being poor gave me a great sense of agency," he wrote. "The YMCA gym was $5 a month and the library was free. I either went to the gym to lift or went to the library to read something. I also got a part-time job doing landscaping work over the summers so I could have some of my own money."

He broke the cycle by recognizing it existed in the first place. That's the advantage of seeing clearly what your parents still can't, or won't, acknowledge. Sometimes the best financial education doesn't come from doing things right. It comes from watching everything go spectacularly wrong and understanding exactly why.

Back to Stock Market News

The Painful Realization That Your Family Wasn't Poor—Just Bad With Money

MarketDash Editorial Team
9 hours ago
A man in his late 20s discovered his family's financial struggles weren't caused by the Great Recession, but by a series of disastrous decisions. From adjustable-rate mortgages to worthless degrees and failed restaurant ventures, he's now helping his parents plan for retirement while confronting a past they still refuse to acknowledge.

There's a particular kind of clarity that comes with distance, especially when it involves money. For years, a man now in his late 20s believed his family had been crushed by the Great Recession like so many others. They bounced between apartments, scraped by on odd jobs, and eventually fled Los Angeles for the cheaper High Desert. It felt like circumstance, like bad timing, like being in the wrong place when the economy collapsed.

But recently, while helping his parents plan for retirement, he started piecing together their actual financial history. And that's when everything clicked into place. They weren't poor because the economy failed them. They were struggling because they made one terrible financial decision after another.

When Every Fork in the Road Leads to Disaster

Now living comfortably in Los Angeles with an upper-middle-class lifestyle, he laid out the full picture in a Reddit post on r/povertyfinance. "So much of our struggles were just self-inflicted," he wrote, and then proceeded to catalog the damage.

His father bought a house in 2005 with an adjustable-rate mortgage he couldn't actually afford. "He was basically the poster child of what went wrong," he explained. When the rate adjusted upward, they lost the house. Around the same time, his dad used a construction bonus to buy a brand-new truck, which was promptly repossessed when he couldn't keep up with the payments.

His mother, trying to help the family's financial situation, took on $15,000 in student debt for a degree from a for-profit school. "The degree might have well been written in crayon for all it was worth," he said. And an inheritance from his grandfather that could have stabilized everything? Lost in a failed family restaurant venture.

"There was a good choice and a bad choice, and they repeatedly made the bad choice, over and over again," he wrote. The hardest part, though, isn't the past financial carnage. It's that his parents still won't own any of it. "They still have this idea that they were blameless, that they did what they had to do, and that everyone else either tricked them or took advantage of them."

The Comments Section Becomes Group Therapy

The post struck a nerve. Hundreds of people responded with eerily similar stories of discovering their childhood poverty wasn't inevitable, just preventable.

One person remembered thinking their family was poor until learning their father spent $1,000 a month on alcohol during the 1980s and 1990s. "I can't imagine how different my childhood would have been if rehab would have stuck," they wrote.

Another commenter said their dad burned through $20 a day on beer and $50 a week on cigarettes while constantly complaining he couldn't afford to pay for his kids' activities. Others shared stories of parents funneling money into lottery tickets, multi-level marketing schemes, and impulse purchases while rent, groceries, and medical bills went unpaid.

Several commenters connected the dots between financial chaos and mental health issues. "My mom HAS to be mentally ill to let her 5-year-old kid be homeless multiple times because 'someone is coming to get us,'" one person wrote. Another recalled a mother who somehow burned through $220,000 in just two months, likely due to an undiagnosed condition.

One commenter described parents who racked up massive debts purely to maintain appearances. "They wasted ALL their money on making sure they didn't look poor. Nice clothes, my mom's designer makeup, shoes, a nice car, purebred dogs."

Finding Agency in the Chaos

Looking back, the original poster said growing up in that financial instability actually taught him something valuable. It wasn't just a masterclass in what not to do, though it was certainly that. It also forced him to develop independence and resourcefulness.

"Honestly, I think being poor gave me a great sense of agency," he wrote. "The YMCA gym was $5 a month and the library was free. I either went to the gym to lift or went to the library to read something. I also got a part-time job doing landscaping work over the summers so I could have some of my own money."

He broke the cycle by recognizing it existed in the first place. That's the advantage of seeing clearly what your parents still can't, or won't, acknowledge. Sometimes the best financial education doesn't come from doing things right. It comes from watching everything go spectacularly wrong and understanding exactly why.