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Most Americans have a cable+cell phone bill that is probably close to $500. If you cut down on some of these expenses (which is what I did when I didn't have any money), you can afford a surprise $500 bill.

I know many people that spend that much on weed/cigarettes/alcohol in a month.

Couldn't have said it better myself!! +1
Which is caused to our public school system not teaching financial literacy to high school students, because people in power don't want that.

I suspect that in top private schools, financial literacy is rigorously taught, along with ways of starting a business, and hiring employees, and how to be a master (employer) to servants (employees).