More to spend your cash on Now vs. Then?

[Bini]

This was an interesting comment made on the news. It said that our young people, specifically college aged, are significantly more in debt than their parents and grandparents were. It was suggested that not only schooling caused financial set back but that young adults were spending much of, or money they don't have, on lots of "things" in general. Example, I heard that the average American goes into debt to obtain and maintain a cellphone. I believe it, I know a few people that probably shouldn't have cellphones, let alone the latest iPhone or Galaxy Skyrocket. But there's the same issue on a smaller scale, like the social trends of getting a Starbucks every morning, or dining at that trendy cafe downtown every lunch break with friends. That can become an expensive lifestyle, and yet, it's a familiar one to many but especially for young adults on-the-go and wanting to keep up with their social networks.

Bottom line: Young people are big spenders in comparison to previous generations.

Would you agree with this? Or, is the inflation in the marketplace just ridiculous? Or maybe the list of "necessities" has changed over the last couple decades? It very well could be a melting pot of all of that, I think.

[Wingnut]

Bottom line: Young people are big spenders in comparison to previous generations.

Would you agree with this? Or, is the inflation in the marketplace just ridiculous? Or maybe the list of "necessities" has changed over the last couple decades? It very well could be a melting pot of all of that, I think.

Yes.

[Iggy]

Yes

[Vort]

I agree, we have a consumer culture, and it's sick (and sickening).

I have always found it amazing to see families on various forms of public assistance, but with each family member (including children) having a cell phone, usually something like a smartphone. What the heck?! I didn't get a cell phone until about five or six years ago, and we have two other cell phones for our children, which they don't get until they're fifteen. If they need a cell phone for a special purpose, we let them use ours. So what's up with this "everyone-gets-a-tricorder" philosophy?

There is a reason we refer to overindulged children as "spoiled". I think we are seeing the spiritual and emotional spoiling of an entire generation. Sad to see, and ultimately not their fault, but their parents'. But it has always been the case that the children reap the blessings of their parents' work and pay the price of their parents' sins. Indeed, the fathers have eaten sour grapes and the children's teeth are set on edge.

[Bini]

Additional food for thought!

The Today show did a segment on "Singles Sizing Up Partners Based On Credit Score". It interviewed a couple men that said they refused to date women that had bad credit scores. One man in particular would not date a woman with a score below 600.

Thoughts? Pros? Cons? I can foresee both pros and cons.

[Vort]

Additional food for thought!

The Today show did a segment on "Singles Sizing Up Partners Based On Credit Score". It interviewed a couple men that said they refused to date women that had bad credit scores. One man in particular would not date a woman with a score below 600.

Thoughts? Pros? Cons? I can foresee both pros and cons.

The idea of using a credit score alone to determine who you date is absurd. But if you look at a credit score as a proxy for various personality traits -- discipline, self-restraint, lack of entitlement mentality, willingness to work, honesty in financial dealings -- then it stops looking quite so foolish and starts looking almost wise.

[beefche]

My bishop shared with me a story of how a family came to him for help. They couldn't pay their bills and couldn't afford food. But, they refused to cut their cable bill--even just the premium package and reduce to basic. They paid over $200/mo for cable and refused to either reduce it basic cable or cut if off altogether. They also had a $200+ cell phone bill and refused to consider other options.

Our younger generation, on the whole, are of the entitlement mindset. It is true that school costs are more expensive. When I was in college, it didn't cost as much (looking at percentage of income vs. school costs) as it does now. I am blatantly aware of that fact as Dravin works on his education. But, from my perspective, the costs of school are a more necessary evil than smart phones, iPads, TV, etc.

[Backroads]

I read an article on this the other day. And I kind of agree. Our definition of "necessity" has changed. The article said something that young people also don't know how to socialize without spending money.

[Backroads]

My bishop shared with me a story of how a family came to him for help. They couldn't pay their bills and couldn't afford food. But, they refused to cut their cable bill--even just the premium package and reduce to basic. They paid over $200/mo for cable and refused to either reduce it basic cable or cut if off altogether. They also had a $200+ cell phone bill and refused to consider other options.

over 200$+over 200$=Backroards/Brother Backroads' rent.

It's insane.

My cousin had a similar issue with her bishop some years ago and almost went inactive over it. I think my mom had to go yell at her to get her act together and cut out the cable and fun fund.

[Guest gopecon]

My bishop shared with me a story of how a family came to him for help. They couldn't pay their bills and couldn't afford food. But, they refused to cut their cable bill--even just the premium package and reduce to basic. They paid over $200/mo for cable and refused to either reduce it basic cable or cut if off altogether. They also had a $200+ cell phone bill and refused to consider other options.

Our younger generation, on the whole, are of the entitlement mindset. It is true that school costs are more expensive. When I was in college, it didn't cost as much (looking at percentage of income vs. school costs) as it does now. I am blatantly aware of that fact as Dravin works on his education. But, from my perspective, the costs of school are a more necessary evil than smart phones, iPads, TV, etc.

I hope that he didn't enable their wasteful spending by providing much help. That falls squarely into the category of enabling, and not really helping the problem as the welfare program is designed to do.

[dahlia]

It is amazing what young people have & do these days. As a professor, I see this stuff up close. They all have smart phones, not just cell phones like my cheap little gizmo. When I went to grad school in Seattle, the kids would be knee deep at the coffee kiosks in campus buildings, waiting for a latte at $2-4 a pop. I just didn't have that kind of money to spend every day on coffee or soda.

I'd say that those kids who want them, have laptops. Over the past few years I've seen laptops, tablets, and notebooks all become typical for students to have in the classroom. When my son went to school in the mid 1990's, I didn't get him a computer because there was a computer room in the dorm, and big centers around campus. Nowadays I don't think kids want to go to the computer center unless they are using their print allotment and using the university's fast printers and paper. When I was in school, I had a portable typewriter. I don't even think it was electric.

Students also seem to go out more - more lunches out, dinners several times a week. I don't mean going to a bar and having a few beers, but out to a real restaurant like they are grown or something. We'd go out a few times a month for a pizza or to the local college dives. Real restaurants were reserved for parent visits and parental pocketbooks.

My friends who had apartments lived in student ghettos where landlords didn't maintain the buildings. A huge topic of discussion today is student 'lifestyle,' so that colleges provide beautiful apartments with internet, cable and pool. Students live in nice off-campus places and wouldn't look twice at some of the pits my friends were happy to call home in the 1970's.

Students want food courts with 'mall food' like they are used to back home, not traditional dining services, and they want fully equipped gyms. The student services literature will tell you that if your college doesn't have this kind of set up, you won't be competitive with schools that do.

I keep saying 'students,' but I mean the young adult from college through maybe the first 5-8 years after school. They never did without, the never lived below their means ('cause mom and dad covered whatever they couldn't pay for themselves), never learned how to cook or do a budget.

I hesitate to call them spoiled. Certainly some may be, but there is also just the change in technology and the change in lifestyles. Computers make doing school work and leisure time very different from my experience as an undergrad. With more campus and public libraries moving to ebooks, with digital text books, etc., having a computer becomes more of a requirement and less of a choice. And, with Netflix, amazon cloud, etc., students don't need a TV or stereo to entertain themselves. Technology just makes life different.

More Americans go out to eat several times a week than when I was growing up. Students expect to do the same, not because they see it as high living, but because they've been doing it since they were kids. What I don't see is much critical thinking about their choices. Yes, you may need a phone, but you only need a phone, not a $200 smart phone, etc.

So yeah, there's more stuff to buy. I don't think it's good or bad, it just is. And, people have always gotten into trouble with consumer goods (at least in the US), spending more than they should on cars, houses, or really nice shoes. : )

[Wingnut]

More Americans go out to eat several times a week than when I was growing up. Students expect to do the same, not because they see it as high living, but because they've been doing it since they were kids. What I don't see is much critical thinking about their choices.

I was involved last week in a completely unrelated discussion, in which someone was talking about a penalty that wrongly showed up on her credit report once. Her husband ended up just forking out the $300 to get rid of it, and she commented, "We were newlyweds at the time, with no kids, so $300 was, what?, a month of date nights...lol! No big deal."

I don't think I spend that much on dates in a whole year!!

Edited January 29, 2013 by Wingnut

[Backroads]

The real trouble with more stuff to buy is when these young people go into debt because of it. I think all the technologies we have are, in and of themselves, blessings. But this "I must have x gadget no matter what the cost" is the wrong sort of attitude.

[Vort]

I was involved last week in a completely unrelated discussion, in which someone was talking about a penalty that wrongly showed up on her credit report once. Her husband ended up just forking out the $300 to get rid of it, and she commented, "We were newlyweds at the time, with no kids, so $300 was, what?, a month of date nights...lol! No big deal."

I don't think I spend that much on dates in a whole year!!

When you're childless, I suppose you can go on dates every night of the month.

[pam]

Unfortunately the newer generations coming up are an "entitlement" generation. Many are brought up that they deserve to have the newest and greatest gadget on the market. Or at least think they HAVE to have them.

[Dravin]

When you're childless, I suppose you can go on dates every night of the month.

Without getting too extravagant* you can wrap up a hefty costing date night in a hurry. Your stereotypical dinner and a movie can easily hit ~$60 if you aren't careful, ~$30 for dinner, ~$15-20 for the movie tickets, and ~$10 for soda and popcorn (double if you aren't sharing). Obviously you can do it for a lot cheaper but if one wasn't thinking about trying to keep it down it could rack up in a hurry. At the $60 a pop cost that's only 5 date nights per month (or 4 if you tweak the cost up to $75). This is a comment on the frequency of dating required to hit $300 per month as a dating expense, not on the wisdom of spending such.

*Meaning not going to $50 per person restaurants and getting $75 per person symphony tickets or what have you.

Edited January 29, 2013 by Dravin

[Vort]

Unfortunately the newer generations coming up are an "entitlement" generation. Many are brought up that they deserve to have the newest and greatest gadget on the market. Or at least think they HAVE to have them.

Which is highly irritating to those of us who really do deserve the newest and greatest gadgets.

[pam]

Which is highly irritating to those of us who really do deserve the newest and greatest gadgets.

I hear you Vort..I hear you. Well in this case I guess I read you.

[beefche]

dahlia said:

So yeah, there's more stuff to buy. I don't think it's good or bad, it just is. And, people have always gotten into trouble with consumer goods (at least in the US), spending more than they should on cars, houses, or really nice shoes. : )

I do see it as bad. Debt is bad, no matter what kind of debt it is. Some debt is more necessary than others--house, school, car. But, regardless, we should live below our income--pay a little extra on the debt to pay it off.

[MorningStar]

We qualify for some welfare programs, but we don't have cell phones or cable. Drives me nuts to see people on food stamps with smart phones. In my 13-year-old son's language arts class, only he and one other student don't have a cell phone. I think it's ridiculous. My husband has a cell phone through work and I have run into frustrating situations where I wished I had one, but I will not have one until things are better financially and maybe not even then.

Edited January 29, 2013 by MorningStar

[Backroads]

Which is highly irritating to those of us who really do deserve the newest and greatest gadgets.

The Iron Man suit isn't cool enough?

[mnn727]

My bishop shared with me a story of how a family came to him for help. They couldn't pay their bills and couldn't afford food. But, they refused to cut their cable bill--even just the premium package and reduce to basic. They paid over $200/mo for cable and refused to either reduce it basic cable or cut if off altogether. They also had a $200+ cell phone bill and refused to consider other options.

From the welfare programs "Providing the Lords Way": "The purpose of Church welfare is to .... Sustain life, not lifestyle"

The Bishop would have been within his rights to refuse assistance. My Bishop will not pay cable bills or credit card bills - period and I agree with him.

[mnn727]

Banks, finance companies, Consumer companies of all kinds have promoted instant gratification, easy credit, 'you deserve this', 'have it now for only $x.xx a month'

They've been told all their life that they 'Need' this or that item to be fulfilled, to be sexy, to be popular, etc through commercials.

What do you expect? (being a general statement and not directed at anyone in this thread)

[M_T_E]

This was an interesting comment made on the news. It said that our young people, specifically college aged, are significantly more in debt than their parents and grandparents were. It was suggested that not only schooling caused financial set back but that young adults were spending much of, or money they don't have, on lots of "things" in general. Example, I heard that the average American goes into debt to obtain and maintain a cellphone. I believe it, I know a few people that probably shouldn't have cellphones, let alone the latest iPhone or Galaxy Skyrocket. But there's the same issue on a smaller scale, like the social trends of getting a Starbucks every morning, or dining at that trendy cafe downtown every lunch break with friends. That can become an expensive lifestyle, and yet, it's a familiar one to many but especially for young adults on-the-go and wanting to keep up with their social networks.

Bottom line: Young people are big spenders in comparison to previous generations.

Would you agree with this? Or, is the inflation in the marketplace just ridiculous? Or maybe the list of "necessities" has changed over the last couple decades? It very well could be a melting pot of all of that, I think.

Younger people don't have the sense of financial responsibility that many older generations have.

I did well for awhile, but eventually my job working in semiconductors laid me off nd that's when I fell behind. Been a tough road, but I'm slowly paying things off. Obviously not as quickly as I'd like though.

[mnn727]

More Americans go out to eat several times a week than when I was growing up.

Growing up in the 50's and 60's my parents took us out to eat maybe once a year, even on vacations we always brought a cooler along with sandwiches. I only remember one vacation that did not include staying at relatives homes.

My wife and I go out to eat 2-3 times a week and take 2 or 3 vacations a year and never stay with relatives. Admittedly DW and I are both professionals (white collar workers) and my father was blue collar and Mom didn't work until I was in High School - also a blue collar job, so we have more money than my parents did however my wife's parents were both professionals and had money but they did the same as my parents did, ate at home, vacationed with relatives.

Edited January 29, 2013 by mnn727