11 Unfortunate Things Working Class People Waste Money On While Thinking They're Leveling Up
There are many reasons low-income households are stuck in cycles of debt and financial insecurity.
maxbelchenko | Shutterstock Working class people make up nearly two-thirds of the American workforce, according to a report from the Center for American Progress, yet they're consistently left out of data and research about spending, financial literacy, and socioeconomic standing. The financial habits of working class people often tell us more about the economy than the wealthy, considering many are forced into precarious situations where they have to sacrifice, save money, and make financial choices that others aren't always in their best interest.
Many of the unfortunate things working class people waste money on while thinking they're leveling up are poor financial decisions, but without the financial literacy, support, or security to know otherwise, they find themselves stuck in a cycle of debt. By unlearning toxic beliefs and habits about money — largely due to lacking research and support — working class people can set themselves up for success.
Here are 11 unfortunate things working class people waste money on while thinking they're leveling up
1. Brand new cars
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According to multiple Bankrate studies, new cars can lose up to 45% of their value within the first year, which is why they tend to be one of the unfortunate things working class people waste money on while thinking they're leveling up. While it's certainly a modern status symbol to drive the nicest newest car off the lot, it's actually a much less responsible financial investment for working class people than buying a used car.
For other large purchases, like buying a home, it's far more likely for an investment to pay off in the long-term, but for new cars, it's much more common for consumers to lose money.
2. New technology
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In an effort to keep up with trends and acquire status symbols to "level up," many working class people actually end up overspending and losing a sense of financial security. From new clothes to the newest technology device, these are some of the unfortunate things working class people waste money on while thinking they're leveling up.
Especially if they're surrounded by people from higher economic classes, the financial peer pressure they experience could drive them further into debt and toxic financial routines.
3. A house
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According to financial educator Ellyce Fulmore, despite popular opinions, renting instead of purchasing a living space can actually save working class people money in the long run.
From navigating emergency maintenance costs, to dealing with general upkeep, and affording utilities, purchasing a home too early — without the financial security to handle all of those things — can actually put people in a more financially precarious situation.
However, it's often one of the unfortunate things working class people waste money on while thinking they're leveling up, especially in our current culture that places such a strong emphasis on large investments like homeownership.
4. Expensive degrees
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Expensive degrees and overwhelming student loans can actually sabotage working class people's economic mobility — keeping them stuck in a cycle of high interest, debt, and monthly payments that feel impossible to tackle with a stagnant salary.
Despite being marketed as a ticket to the upper-class, traditional university and educational routes aren't always as profitable for low-income people today, especially without the connections, money, and security to experiment and save.
5. Unnecessary courses and programs
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Whether it's a multi-level marketing scheme to make money, a "get rich quick" scheme, or a business course with a big ticket price, these are some of the unfortunate things working class people waste money on while thinking they're leveling up.
Even if they're being marketed with specific skills or certifications, many of these programs and courses aren't worth the money — and oftentimes, debt — working class people take on to fund them. In fact, they often push working class people to lose money in the long run, investing on items, products, and services that they don't really need.
6. Designer items
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Considering price rarely tells you about the actual quality of clothes today, it's not surprising that designer clothing and expensive handbags are some of the unfortunate things working class people waste money on while thinking they're leveling up. Especially if they've saved for a designer item or even taken on debt to purchase one, it could be a less secure and smart investment than they believe.
People used to invest in designer items for quality and longevity — getting the most from their money — but today, standards and true quality are steadily decreasing. They're not only getting less for their money, many working class people are also putting themselves in a more financially unstable position by choosing to purchase big ticket items that don't last.
7. Cash advances
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Oftentimes, the financial "solutions" and hacks that working class people follow are the same things keeping them in a toxic cycle of debt and financial insecurity. From paying minimum payments on credit cards, to using "buy now, pay later" platforms, and even getting cash advances from apps online, these short-term fixes often lead to a lot of money stress down the road.
According to a study from Howard University, these apps and services lure people into debt — providing solutions to emergency situations and struggles with affording basic necessities at a high price tag. Especially for working class people who struggle to budget or plan financially for the future, it's not hard to get stuck in a cycle of using and racking up debt out of convenience, even if they think they're leveling up by getting access to more money faster.
8. Fast food
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Considering fast food prices are rising dramatically in recent years, it's not surprising that they're one of the unfortunate things working class people waste money on while thinking they're leveling up. By avoiding the trap of grocery prices and leaning on convenience, these people may believe that traditionally "cheap" food alternatives are the perfect solution for saving money, even when they're not.
Of course, completely giving up small luxuries and treats like a trip to McDonald's hardly ever makes a difference — promoting a toxic "sacrifice" mentality — but cutting back on these trips could save working class people a lot of money. Even if it forces them to plan out their groceries and meals a little bit more thoroughly, they'll be saving money and protecting their health and wellbeing by putting in the effort.
9. Overpriced extended warranties
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While they might seem like a smart and safe choice for working class people making large purchases, financial experts like Dave Ramsey argue that extended warranties are hardly ever worth the expense. According to a report from Consumer Protections, warranties for things like tech devices and cars are generally not worth it. They're not only simply overpriced, they're generally more expensive than purchasing a replacement when needed.
It may give a consumer a false sense of security, which is why it's one of the unfortunate things working class people waste money on while thinking they're leveling up, but at the end of the day, it's usually causing more financial insecurity than it's worth.
10. Bottled water
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According to a report from DigDeep, the average person spends nearly $1,400 a year on single-use plastic water bottles, when there's perfectly cost-effective options — like a stainless steel reusable bottle — that could save them money. While it might take more planning and effort to use a reusable alternative, at the end of the year, the money saved could be more useful for investments and necessities.
Of course, this is one of the unfortunate things working class people waste money on while thinking they're leveling up, because they construct their routine around saving time and convenience. But is it worth saving a couple of seconds every day grabbing a plastic water bottle before work, when there's more than $1,000 on the line?
11. Streaming services
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According to a Bango survey, the average person spends nearly $1,000 annually on streaming services in their household, many of which they hardly ever use. While the convenience of having all the streaming services may feel worth it for a slim monthly cost, at the end of the day, the accumulation of these expenses are some of the unfortunate things working class people waste money on while thinking they're leveling up and away from cable costs.
While it's true that working class people tend to spend more of their leisure time indulging mindless entertainment like streaming services than their wealthy counterparts, they also generally have less free time to spend watching.
So, while they may be purchasing services that they'll eventually use, they don't realistically have the time to utilize all of them in a way that's worth the expense.
Zayda Slabbekoorn is a staff writer with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
