Generation Y and Z Debt

[Sigmapolis]

These threads are always good at identifying people who talk just to hear the sound of their own voice

Ain't go nothin' on the Iowa and Trump threads.

 

[Gunnerclone]

Great lessons - he made you provide for yourself and helped you identify another avenue with which to procure candy. Genius!

Seriously any other time he had something to say to me he would have my great grandma, grandma or mom tell me what he wanted to tell me even if I was standing right there.

This was a common one, “tell your grandson/son if he drops that glass of kool aid/water/soda on my floor I’m going to use his head to mop it up”

 

[LincolnWay187]

Anyone who has worked in finance and reviewed people's financials know the Boomer s are/were just as crappy at managing their spending as the kids these days.

Instead of the $1000 phone they are buying atvs, and other dumb **** they can't afford.

 

[DeereClone]

I don't agree with you often, but I agree here to a point. I put in the caveat that parents' shouldn't sacrifice their retirement (which you can't take out loans for) at the cost of college (which you can take loans for). I think to your example though, the assumption is those parents have plenty they could save for retirement (whether or not they are is a different story).

I do think it's ridiculous the burden some want to put on an 18 year to figure out the most profitable career, figure out how to pay for it, understand the full ramifications of all of this - and some don't seem to have the realization that these kids do not always have parents who are well-versed in this process to guide them through it. Or even access to school counselors and such to guide them through FAFSA. My family worked with a professional accountant each year for farm taxes and he ****** up one year and missed the FAFSA deadline so I had a nice chunk that I got to pay on my own because of someone else's mistake. Most of my student loans actually came from that year.

My husband worked all through high school. The money he saved up through four years of working was gone in the first year of college. And he didn't have to send any money back to help support his family, he was able to spend it all on tuition.

Of course I think it's good for the kids to get their feet wet and be invested in the cost of their education. But we shouldn't be drowning them in it. My husband and I having an affordable amount of loans has been the biggest step up in life we've had. And it's put us in a place where we can be saving for our son's college now to hopefully give him that boost as well.

I agree that parents need to take care of retirement savings first or in conjunction with college savings. And yes, my post was aimed at those that have the ability to save for kids' college, but spend money selfishly on their own things. I'm not bashing the single mom scrapping by on $35,000 a year with 4 kids.

Student loan debt is a legitimate crisis that is crippling young people for the first 20 years of their adult-life. 6-figure student loan debts with no hard asset to back them mean that a lot of young people will have a negative worth for many years after graduation.

Like I said in my original post, $250/month can change your kids' life forever. Kudos to you guys for trying to give your son a boost!

 

[yowza]

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.

Use the 529s. Exempt from State of Iowa tax as are the earnings.

 

[DeereClone]

I love the prescient colloquialisms from the bootstrap crowd in this thread.

The only thing my great grandpa used to tell me was “go get my licorice you little ****” and “tell your grandma to make me a sandwich” and “do I look like a gum ball machine? Go ask your mommy for candy”

I have no idea what this means, I guess I should of did more English classes.

 

[yowza]

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.

Government got involved and kids/parents brainwashed into more expensive schools and flashy majors. Mostly government subsidy. Look at the growth in administrations at these institutions. Fancy nice buildings, grounds, etc. Always new stuff and more people to manage new stuff, etc. Ridiculous.

 

[yowza]

I have no idea what this means, I guess I should of did more English classes.

It means the old school crowd is preaching to the youngsters about having to walk up hill to school both ways in driving snow and searing heat and they made it and thinking times are the same. That is what I gather.

 

[Sigmapolis]

It means the old school crowd is preaching to the youngsters about having to walk up hill to school both ways in driving snow and searing heat and they made it and thinking times are the same. That is what I gather.

Just think of Grandpa Simpson and you pretty much have it.

 

[yowza]

Just think of Grandpa Simpson and you pretty much have it.

Yep. Every generation thinks the following generation is a bunch of pansies because they have an "easier" life.

 

[Sigmapolis]

Yep. Every generation thinks the following generation is a bunch of pansies because they have an "easier" life.

I do not know if they are entirely wrong.

My great-grandparents faced wars, economic hardships, and infectious diseases we have long stopped worrying about as serious matters that affect our day-to-day lives. Our standard of living and access to clean water, good food, information about the rest of the world are much higher than theirs, too, along with our ability to travel places and see the world.

Their great-grandparents were likely either packed into some industrial slum somewhere in a major European or American city and/or subsistence level farmers/peasants.

Yeah, I have it easy. Thanks ancestors.

What we call human society is the uneasy alliance between those who are living, those who are dead, and those who are yet to be born.

 

[bear24]

These people should be embarrassed if they are still dependent at the age of 27. There is no excuse for it. The population on the whole is more lazy, requires more instant gratification, and is more self entitled than the previous generations. It is always somebody else's fault and never the consequences of our own decisions.

 

[cowgirl836]

I agree that parents need to take care of retirement savings first or in conjunction with college savings. And yes, my post was aimed at those that have the ability to save for kids' college, but spend money selfishly on their own things. I'm not bashing the single mom scrapping by on $35,000 a year with 4 kids.

Student loan debt is a legitimate crisis that is crippling young people for the first 20 years of their adult-life. 6-figure student loan debts with no hard asset to back them mean that a lot of young people will have a negative worth for many years after graduation.

Like I said in my original post, $250/month can change your kids' life forever. Kudos to you guys for trying to give your son a boost!

and the big thing I think that's often missed with the bolded is this works just like compounding interest. The later they are able to actually start building wealth and not just paying off debt, the worse off they are down the line. The later they buy a house. Newer car. Save for retirement. Save for their own child's education.

 

[AlaCyclone]

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.

The 8% for 18 years is nice! Where did you find that deal?

 

[SpokaneCY]

These threads are always good at identifying people who talk just to hear the sound of their own voice

Only the ones who read their posts aloud.

Yep. Every generation thinks the following generation is a bunch of pansies because they have an "easier" life.

And every generation thinks their burdens are unknown to anyone else but them and nobody understands just how hard it is...

 

[yowza]

Only the ones who read their posts aloud.


And every generation thinks their burdens are unknown to anyone else but them and nobody understands just how hard it is...

Yeah. The kids are always like "you don't understand........". Like we didn't experience fairly similar stuff growing up. Man do I wish I had internet and Google back in the day and had a damn smart phone at my disposal 24/7.

 

[yowza]

Dunno...but I'm probably closing in on my 3rd quarter...

Better than the Two Minute Warning at the end!!!!

 

[madguy30]

Yeah. The kids are always like "you don't understand........". Like we didn't experience fairly similar stuff growing up. Man do I wish I had internet and Google back in the day and had a damn smart phone at my disposal 24/7.

That makes one of us.

 

[yowza]

That makes one of us.

I know it could have caused troubles too, but if you were just using it for the power of good. I was thinking looking up things for school work.

 

[ArgentCy]

Dunno...but I'm probably closing in on my 3rd quarter...

Do you play Sweet Caroline or not? That is the question.