Financial overspending in America is a problem that is not getting better. Many people spend money they don't have on items they don't need. Students graduate from high school, get a first job, and go out on their own without any adequate training in financial planning and money management. These young people become parents and their children are no more educated than them. This lack of financial education is ruining our country financially. People overspend due to lack of advance planning, revolving credit and excessive use of credit cards. These problems could be resolved by requiring financial budgeting lessons for anyone who has declared bankruptcy and as a graduation requirement for high school students. There are many reasons why people overspend, but the main reason is a lack of planning ahead. Statistics show that “Over forty percent of American families spend more than they earn” (Consumer). Setting and following a budget would prevent people from overspending. The Merriam-Webster online dictionary defines a budget as “an amount of money available for spending based on a plan used to decide how much money can be spent and how it will be spent” (Budget). A budget is a great tool to guide a person to avoid overspending. If followed correctly, it will avoid impulse purchases because the consumer will be aware of how much money is allocated for which items. They will also be aware of future debts that will need to be paid and this knowledge will help them plan ahead for these future expenses and eliminate unnecessary expenses. Having revolving credit is another reason people get into debt. “Revolving credit is credit available on credit cards” (US Personal). "Th... middle of paper... bankruptcy and as a graduation requirement for high school students. Works Cited American Consumer Debt Statistics. Consolidated credit.org. Solidarity Credit Counseling Services. nd Web. November 12, 2013. Financial Statements . Merriam-Webster. Merriam-Webster and Web. November 29, 2013. Consumer Debt Statistics in America. Progressiverelief.com. Network. November 12, 2013. Elias, Stephen R. and Leon Bayer. 2013. Pages 1-394. Print Leonard, Robin and Margaret Reiter. Print. Veneta and Alain D'. Astous. "Social Networks and Excessive Credit Card Spending Among Young Adult Consumers." United. DebtAndUs.com. April 26, 2011. Web. November 12. 2013.