The rising cost of living revealed: How young need

[neohguy]

I agree with this article somewhat but I don't think we are comparing apples to apples (sic) comparing yesterday to today. I think that education and health costs are more of a burden on the younger folk but I wonder if they might be better off if they didn't have so many gadgets (I'm not saying all young people do).
Cable, expensive cell phone programs, internet connections all add up. I also think that people today, young and older, spend a lot more of their discretionary income on eating out etc. The retail space available today must be at least 5x per as much per capita as what was being used 40yrs ago. Are we just buying too much stuff that we think we need but really don't?
I know most don't want to hear it but is this excessive consumption really sustainable?

www.dailymail.co.uk/news/article-1358161/The-rising-cost-living-revealed-How-young-need-twice-salary-match-parents-lifestyle.html

[vl]

When I worked in Chicago while my family remained here, I assessed my budget by dividing existing costs to a single unit (me), assuming that to be accurate. I soon learned that food for one is far costlier and that often- eating out costs less. The issue with eating out is that it is rarely healthier food so the savings is lost. One also tends to buy groceries AND eat out, so the budget is fully out of whack with the hankering for a snack.
Other costs are similar. As my daughter prepares to exit college, she faces the daunting cost of essentials she took for granted while there. LOOK at our dependence on electronic devices. That cost translated to a single user fresh out of college is huge. The cost of adequate insurance causes health issues just looking much less covering them.
Today's lack of jobs and ethical employers is also a giant problem. Youth understand how to hedge and frequently do so when a job fails to provide security. That undermines commitment or loyalty and promotes sabotage when the pay is less than the drag working it has on social life.
It also goes without saying that this will all impact the markets adversely. If we thought Middle Class savings was pathetic, wait until the total lack of savings by younger people thins the ranks of contributors. A penny saved goes pretty quickly toward the latest greatest electronic device. Also... why on Earth would a young person buy a house as opposed to rent? Look what that is doing to their parents!

[comokate]

I know most don't want to hear it but is this excessive consumption really sustainable?

You nailed it Neoh. It isn't. Our economy was based on a rate of 70% consumption fueled by credit based upon a real estate bubble.
V_L nailed it too. People were purchasing things they didn't/don't need...but it was/is encouraged by those who profit from it, and the "gadgets" keep people busy...too busy to think or look up.
I'm old school. I saved, didn't get into credit card debt, no cable, one phone line, etc. My kids were *so* ticked before the crisis. Now they understand my thinking as even though my hours have been cut, we are still in our home and drive the cars we own outright. So far, we are weathering the storm.
How many were lured into a lifestyle they, in reality, could not afford? People are what they are by nature...which is why we regulate the sale/use of habit forming , generally pain/stress relieving substances like alcohol, tobacco, medications, oh yeah....and we used to limit credit too...
The drug pusher always gives out the first few hits for free until he gets the junkie hooked...

[comokate]

Feb 20, 2011 17:28:16 GMT -5 @sroo4 said:

I think the most important day for me financial development-wise, was the day it clicked in my brain that I couldn't walk out of my parents world into mine and expect the same things. I couldn't go shopping every weekend, take vacations, or afford 'stuff' like they could. Don't get me wrong, they were never over-spenders, and most shopping trips ended up with a modest purchase from a discount store. The big difference is that they could afford it, I sadly couldn't.

When I figured that out, I quit trying and became more content with my situation. I stopped spending on things I didn't need, and really had less issues with money.

I learned I'm actually pretty simple in my needs and wants (don't get me wrong, I can spend like a drunken sailor if called upon!) but for the most part I'm not that much of a spender.

Karma to you for your youthful wisdom !

[blackcard]

We are still youngish, early 30's. We feel the need to pay cash for everything. One thing I have is a husband who loves to save money. He will bargain and haggle a lot. The only debt we have is our mortgage, which should be gone in 2 or 3 years.

I think there is a financial crisis coming soon. Wisconsins budget problems are just the tip of the iceberg.
Veteran Lender, I read a lot of your posts when lurking on the old MSN boards. I think you are right. We don't take either of our jobs for granted. Their is no employer to employee loyalty.

[bimetalaupt]

Feb 20, 2011 21:42:58 GMT -5 blackcard said:

We are still youngish, early 30's. We feel the need to pay cash for everything. One thing I have is a husband who loves to save money. He will bargain and haggle a lot. The only debt we have is our mortgage, which should be gone in 2 or 3 years.

I think there is a financial crisis coming soon. Wisconsins budget problems are just the tip of the iceberg.
Veteran Lender, I read a lot of your posts when lurking on the old MSN boards. I think you are right. We don't take either of our jobs for granted. Their is no employer to employee loyalty.

Blackcard,
My late wife and I used to live in Midland,Tx where the economy was hot or zero. During one of the Zero's she was upset when here best friends lost their house. It was a lot nicer then ours and in an expensive area. I told her when she ask , we paid it off two years ago when we got some extra income. We have cash in the bank and no debt.. Do you want to go to LONDON OR NEW YORK???

[lifewasgood]

www.msnbc.msn.com/id/41631002/ns/health-diet_and_nutrition

While Commodities continue to rise, the school lunch program struggles along.

[usaone]

How did we ever get through the 1970's??

[lifewasgood]

We still had the ability to manufacture in this country, we also had a Fed that raised interest rates at the later half to put value back in the dollar. We also still enforced basic rule of law, were fraud was prosecuted and politicians resigned when caught (Nixon). We had local U-pick-um farms, and local ag were you could purchase fresh meats by the half. We had friends and neighbors that sold fresh eggs and milk.

Today we have a bunch of spoiled brats that have no idea where an egg comes from and believes the next iphone, ipod and xbox will save the world economies.

[usaone]

Feb 21, 2011 11:07:20 GMT -5 @lifewasgood said:

We still had the ability to manufacture in this country, we also had a Fed that raised interest rates at the later half to put value back in the dollar. We also still enforced basic rule of law, were fraud was prosecuted and politicians resigned when caught (Nixon). We had local U-pick-um farms, and local ag were you could purchase fresh meats by the half. We had friends and neighbors that sold fresh eggs and milk.

Today we have a bunch of spoiled brats that have no idea where an egg comes from and believes the next iphone, ipod and xbox will save the world economies.

Spoken like a true oldtimer!!