what do getting locked in with long term phone contracts and losing your shirt with subprime mortgages have in common? financial illiteracy, especially the lack of understanding what net present value means.
2013-06-07:

Many people who gave themselves high marks for managing their finances also were using non-bank borrowing methods, such as payday loans, or had overdrawn their checking accounts.

I always thought dunning-kruger explained people's infatuation with "owning" real estate, but it turns out it also explains their general financial ineptitude.