Gen X/Y is broke: 20- and 30-somethings are in a financial mess

MSN.com


I find it very uncredible to state that someone could get through four years of high school and four years of college and never once be required to take any sort of basic economics course that taught the life skills of balancing a checkbook. Even if it were so, it is still just basic math.


Some of these make sense, like if you are going to go broke from opening a business, you should do it earlier in life versus later. However others just seem to be related to having the latest and greatest gadgets and cars.


There was certainly credit available twenty years ago. I know because back then when I was slurping slime and evolving into a higher life form, I know myself and several others applied for bank and store credit and had no problem getting it. Sure we didn't get iPods, instead we got an external fan cooler for our Mac Plus or perhaps a nice new Imagewriter II, but we still had toys to desire. (I'm getting the Imagewriter II, a color and Print Shop Deluxe!!)


What a strange bit of reasoning... they can't balance a checkbook but are going to short the stock market or perhaps progam the next big website.

So we know parts of this piece are just fluff and like all generations, the last few have had it easier in some ways and harder in others with regard to finances, what do you think the positives and negatives have been for those in their 20-30's with regard current finances?

Don't worry... chicks totally dig guys who live with their parents when they are 28.


While the rant is well intentioned, if the teachers want to get out because the students do not want to learn, is that really mis-education?


In my views, this is mostly about percentages. We never have an ideal state. It is entirely possible to get a good education even in the worst schools in this country. If you go to any of these inner-city schools that are flunking out half the students, you will still find some percentage getting their college prep work done, understanding the work and getting on with their lives. They may not have learned enough to get into a first choice school, but there are still certain outcomes that are reflected in being disadvantaged.

Now I do feel you are right in that certain attitudes have changed in terms of percentages to a degree that will be harmful but this is not just true of the younger generation. We have a boatload of boomers ready to show up for retirement 75 lbs overweight, smoking, and wanting the magic pill that will fix their health. These kids are merely reflecting their boomer parents in many regards.

That would be wise considering you will have just finished law school.


Your family seems very big on cars. I know you've added quite a lot to the various car threads in here over the years, so it must be quite the sacrifice. Too bad your brother doesn't live in the same town so you two could be roommates. I'm sure that would be quite fun. Is he fraternal or identical?

Finally... brewing your own coffee?!?! That is quite the austerity program you've got going on there Shawn. I know it is from your own perspective though so congrats on the reduced spending. The terrorists are winning because you brew your own coffee now!


Well I could give you investment advice but it would all be related to lowering taxes which we know you would never want to do to yourself. I would look into this very soon after you start working though because as a single young man with no mortgage, the government will pretty much put the screws to you.


I think you have just explained why the attrition rate is at 50% for the five year mark.


Double the pleasure, double the fun.


While I would say that there is truth to what you say, I would say it goes much deeper than that. One of the principle problems is that many people think of "rich" as having certain brands or a certain size house. The entire middle and lower classes are guilty of this and most parents are simply passing on their financial habits instead of thinking about and modifying them. An asset is something that puts money in your pocket. Most people think of their own home as an asset, but it is just housing and purchasing it just means they have a nice inflation hedge. Let them lose their job, be injured for a bit or even have a life event like a divorce or child occur and suddenly their "asset" is eating them alive.

Poor Shawn probably feels like he has been teased a bit in this thread, but the reality is he will have an asset (hopefully) that will put money in his pocket for his entire life. He may still drive a Civic but on paper he will be worth a lot more than most folks just due to his education.

BTW Shawn, my cousin still drives a Civic even though he has made partner, has a very nice house and also funds his own drag racing team with his two sons.

People get fooled into thinking things are assets when they aren't. They also keep trying to increase their income when it is the most highly taxed financial source out there. Instead they should be thinking about passive income from assets. Timeshares aren't assets. A home is not an asset. Granite countertops are not assets and thinking that because you own these things your financial house is in order isn't the fault of just the marketing folks.