Generation Y and Z Debt

[Bobber]

https://www.usatoday.com/story/mone...rrassing-to-rely-on-them-after-27/1705355001/

Interesting article. I'd say it's a good thing that they feel a sense of embarrassment.

I'm an X'r so had way different dynamics to deal with.

Seems like the thinking is more short term, but suppose in our youth we all tended to be more that way.

I try to teach my kids to make good decisions and think ahead. I teach them accumulating debt is not a good thing as it can limit your options. There are other choices out there..Community College's are cheaper, the trades are great fields to get into with very little if any debt accumulation, joining the military can get your education paid for. Too many people are not going those routes and end up like people this article is about.

 

[Cyclonepride]

WTF is a quarter life crisis?

 

[3TrueFans]

WTF is a quarter life crisis?

Do you know what a mid-life crisis is?

 

[Cyclonepride]

Do you know what a mid-life crisis is?

Uh huh. They might want to buckle up for that one if a "quarter life" crisis got to them.

 

[3TrueFans]

Uh huh. They might want to buckle up for that one if a "quarter life" crisis got to them.

I'm glad I could help you figure this out. Teamwork makes the dream work!

 

[madguy30]

WTF is a quarter life crisis?

John Mayer song from like 2001.

Actually probably associated with the idea of getting out of college and having to find their own way instead of running around with your college clique.

Personally I loved my post-college life overall. Didn't have a career type job but had odd jobs that gave me steady cash flow and allowed me to go do fun stuff that didn't include the same bars with the same people (college).

Repeating but if I were to go back, community college would have been a good start.

 

[cowgirl836]

Oh good, more Boomers to say how they paid $13 for college and young people these days just expect new phones every 60 days and that's why they can't buy a house

 

[yowza]

Get educated in a field that pays and is not easily replaced / downsized /outsourced overseas. Think government, education, various health care, trades, cops, firefighters. Times and technology are changing at a rapid rate.

Education will likely even change some day if a company like Elon Musk's can find a way to do information tranfers / links between brain and external sources. "Here is this year's lesson kids, download xyz zip file and synch while you sleep."

 

[Trice]

I don't think it's especially helpful - or even accurate - to hold up some old conventional wisdom about personal finance and use it club younger generations over the head about how they're failing. There are a lot of trends right now working against younger generations and sucking it up, "bootstrapping," and hard work can only overcome so much of it.

People talk about how decades ago, you used to be able to support yourself and a family on a minimum wage but I know many people with masters degrees and good jobs who have to take second jobs in order to make ends meet. Not because they're irresponsible, but because of their student debt load and/or the cost of housing.

And perhaps a subject for another thread is that these Boomer parents are in no position to whine about their kids because in spite of their decades of voting themselves tax cuts at younger generations' expense and pulling up the ladder behind them, most of them are still woefully underfunding their own retirement.

 

[yowza]

WTF is a quarter life crisis?

I am guessing that is when all schooling ends and they realize real life and going to work every day and paying all their own bills isn't as much "fun".

 

[Dr.bannedman]

Oh good, more Boomers to say how they paid $13 for college and young people these days just expect new phones every 60 days and that's why they can't buy a house

"my first house cost over 48,000$" and that was on a 37,000$ year job. and we did it - some old coot

 

[Cyclonepride]

To the topic, my son has been extremely good at budgeting, and understands the costs of borrowing (so he saves for what he wants to buy and pays cash).

 

[cowgirl836]

I am guessing that is when all schooling ends and they realize real life and going to work every day and paying all their own bills isn't as much "fun".

Suddenly being separated from your core friend group, probably not near family, starting a new routine in a new place with little support and probably a decent amount of debt/bills to pay - yeah, I could see how you'd feel isolated and depressed. I've been there.

 

[cowgirl836]

I don't think it's especially helpful - or even accurate - to hold up some old conventional wisdom about personal finance and use it club younger generations over the head about how they're failing. There are a lot of trends right now working against younger generations and sucking it up, "bootstrapping," and hard work can only overcome so much of it.

People talk about how decades ago, you used to be able to support yourself and a family on a minimum wage but I know many people with masters degrees and good jobs who have to take second jobs in order to make ends meet. Not because they're irresponsible, but because of their student debt load and/or the cost of housing.

And perhaps a subject for another thread is that these Boomer parents are in no position to whine about their kids because in spite of their decades of voting themselves tax cuts at younger generations' expense and pulling up the ladder behind them, most of them are still woefully underfunding their own retirement.

Say it again for the people in the back!

 

[yowza]

Suddenly being separated from your core friend group, probably not near family, starting a new routine in a new place with little support and probably a decent amount of debt/bills to pay - yeah, I could see how you'd feel isolated and depressed. I've been there.

The thing is people should not go in all that debt if the occupation they are choosing would not support repayment of said debt. Don't get into that mess and that stress. And don't go to the priciest schools. High schools fail kids here as do the colleges in not going over that kind of stuff.

 

[Beernuts]

I find it interesting that each generation thinks it will be "better off" than the previous. For my generation I think that was primarily attained by graduating from college. For the next generations I am not so sure that the assumption of improvement is / can be as easily attained.

It has to eventually come down to the individual and the combination of talents and motivation and timing and etc.

Reminds me of the old farmer statement:

"One generation makes it (buys the farm through hard work and sacrifice), the second generation retains it (enjoys the fruits of the farm), the third generation spends it (see's only the current not long term value of the farm)".

 

[DeereClone]

This won't be popular but I think it's wrong for parents to not plan for and pay for their kids' college, if they have the means to of course. I see so many people take 3 vacations per year, drive nice cars, build new houses, etc that don't save money for their kids' college. You have 18 years to save money and prepare for college on their behalf, and they have maybe 3-4 years to do that - why is it their responsibility? Isn't it crazy to expect a kid to put money away for their own college working minimum wage, part-time jobs, while their parents make decent money in a full time career? I just think priorities are way out of whack among parents - I will drive a beater car for the rest of my life if it means I can send my kids to college without debt, but most people don't look at it that way.

$250/month for 18 years at 8% is $120,000 saved for college.

 

[LincolnWay187]

It's embarrassing that college has gotten this expensive. Seriously, what's driving the cost? Boomers or legislators should feel bad about that.

That said, I am glad ISU is one of the more affordable options and has controlled costs more than other schools. Glad I worked my ass off to avoid loans.

 

[BoxsterCy]

Uh huh. They might want to buckle up for that one if a "quarter life" crisis got to them.

I had my first mid-life crisis at 29. Thought it meant I was going to die in my late 50's. Did not die. Yet. Probably should have been more optimistic and called it a third-life crisis.

 

[Trice]

The thing is people should not go in all that debt if the occupation they are choosing would not support repayment of said debt. Don't get into that mess and that stress. And don't go to the priciest schools. High schools fail kids here as do the colleges in not going over that kind of stuff.

This is much easier said than done. Most kids can't even conceptualize what they're getting into. They have no concept of what the professional job market looks like in practice and have minimal practical experience in personal finance issues. And, as you said, colleges and universities often fail kids in that respect - sometimes in borderline fraudulent ways, but also because it's a really hard thing to do. Very few kids have the wherewithal to plan their future like that - and that assumes they know exactly what they want in the first place, which many/most of them don't.

Of course, there's a pretty strong societal argument to be made that a kid who wants nothing more than to be a teacher or nurse for the rest of his/her life shouldn't have to weigh market conditions and debt obligations when deciding whether or not to pursue their passion. It's incredibly meaningful work that people will always need. That ought to be enough.