Four facts on Money and Social Status.

Essay by leftyhalfcock November 2005

download word file, 1 pages 1.0

1. The more money you have the more advantages you get out of life. Those with enough income or wealth often receive lower interest rates on loans, enabling them to take out greater sums of money while making lower monthly payments over a shorter period of time.

2. People in higher class status have a major advantage when borrowing money for a home. They have more income or wealth and because of this they are able to take out loans with lower interest rates. Thus saving money on the amount that they now owe bank, the total interest paid over the live of the loan, and cheaper monthly payments compared to those of lower standing.

3. It takes money to make money. Those with money are offered more advantages out of life. For example shopping in bulk at Sam's Club is cheaper in the long run for those who can afford it.

However not everybody can afford to spend a few extra dollars in order to buy the greater quantity and end up spending more money in the long run. The same can be said about buying loans, employment and better health care which are not offered equally to all people.

4.There is no way a family of four living at the US federal poverty line could spend even the lowest of the monthly mortgage payments. You figure a third of their income go to food leaving them with roughly $13,000 per year. This not including the costs of clothes and medical bills (even with Medicaid) and taxes. There would be less than $600 per month for the mortgage. On the other hand a person making $51,000 a year could make any of these mortgage payments in this scenario. He would probably even come out on top with...