Economy Why are Americans so terrible with money?

[I Am Legion]

Education is important, the rest of that shit isn't.

The rampant profiteering on 18yo Americans is the issue with college.

American kids can rack up 6 figure debt, and do porn before they can drink beer.

Just seems like to much freedom to me.

When I was looking at colleges, I looked at some I could not afford. I ended up going to one I could. So many kids today go to whatever school they want. I see it with my own friends kids. They all just want the dream, even though the ROI isn't there. I know families that live paycheck to paycheck and yet little Johnny goes to a 40k a year school. I even see it on a smaller scale. When I was a kid, I had a normal bike. The kids with parents that had more money had nicer bikes--Mongooses, Haros etc. I worked as a paperboy until I bought myself a Redline. Today these SE bikes are $500-$1000. EVERY kid has one. Where is the kid with the hand me down shitty bikes like in our day? Doesn't really happen now, people go into debt.

 

[lsa]

this is why we need tariffs

 

[Renard]

When I was looking at colleges, I looked at some I could not afford. I ended up going to one I could. So many kids today go to whatever school they want. I see it with my own friends kids. They all just want the dream, even though the ROI isn't there. I know families that live paycheck to paycheck and yet little Johnny goes to a 40k a year school. I even see it on a smaller scale. When I was a kid, I had a normal bike. The kids with parents that had more money had nicer bikes--Mongooses, Haros etc. I worked as a paperboy until I bought myself a Redline. Today these SE bikes are $500-$1000. EVERY kid has one. Where is the kid with the hand me down shitty bikes like in our day? Doesn't really happen now, people go into debt.

A 40k / year school is crazy. The university name really does matter though unfortunately. If you went to a "good" university people will assume you're hot shit, even if you were the worst student there. I see it all the time. It is an investment. Ideally little Johnny gets a scholarship or does his undergrad somewhere cheaper, aces it and switches to the good university for grad school so it ends up on the CV.

 

[HenryFlower]

When I was looking at colleges, I looked at some I could not afford. I ended up going to one I could. So many kids today go to whatever school they want. I see it with my own friends kids. They all just want the dream, even though the ROI isn't there. I know families that live paycheck to paycheck and yet little Johnny goes to a 40k a year school. I even see it on a smaller scale. When I was a kid, I had a normal bike. The kids with parents that had more money had nicer bikes--Mongooses, Haros etc. I worked as a paperboy until I bought myself a Redline. Today these SE bikes are $500-$1000. EVERY kid has one. Where is the kid with the hand me down shitty bikes like in our day? Doesn't really happen now, people go into debt.

i had a red Haro Backtrail X2

 

[I Am Legion]

A 40k / year school is crazy. The university name really does matter though unfortunately. If you went to a "good" university people will assume you're hot shit, even if you were the worst student there. I see it all the time. It is an investment. Ideally little Johnny gets a scholarship or does his undergrad somewhere cheaper, aces it and switches to the good university for grad school so it ends up on the CV.

The smart way to do it is to go to a community college for 2 years. Then transfer the credits to a good school. Save yourself 60-70k and the degree says the good school.

 

[Renard]

The smart way to do it is to go to a community college for 2 years. Then transfer the credits to a good school. Save yourself 60-70k and the degree says the good school.

Interesting. In Canada we don't have community colleges, we just have good (read: competitive) and less good (read: less competitive) universities. The bar to the competitive university is always grades, not money. You can't buy your way into it. You can transfer your way into it though, just gotta ace it at the less good university.

 

[Neph]

A 40k / year school is crazy. The university name really does matter though unfortunately. If you went to a "good" university people will assume you're hot shit, even if you were the worst student there. I see it all the time. It is an investment. Ideally little Johnny gets a scholarship or does his undergrad somewhere cheaper, aces it and switches to the good university for grad school so it ends up on the CV.

In Australia the ‘name’ of the University is almost irrelevant. Nobody has ever asked me where I got my degree, nor did they ask me my GPA. It feels like a very American thing; perhaps there’s a wider disparity between the good and bad universities there than here.

 

[Stoic1]

I wish my parents were financially literate when I was growing up. That way I could have some context about how money works. I am not making that mistake.

My 8 year old kid checks his 529 account weekly. He has a fake investment portfolio that we manage. And he can tell you to the dollar how much he has in his piggy bank. He bought his first bike at a thrift store with his own money.

These terrible financial habits are usually from a lack of education FROM THE PARENTS.

Example: Went into steak n shake in November and only 1 other family there. They had 2 kids 1 of them my son's age. Kid was wearing a GOLD CHAIN. Looked over and saw dad had at least 3. Mom had 4" nails going, comb-like lashes, a designer purse. The older kid had an IPad. Younger one had his own phone because mom and pop were staring at their own.

I was like...blinkblink.

Meanwhile neither my wife or I wear any jewelry or even a watch. My wife has her hair in a bun with her typical IDGAF wardrobe.

I look outside and see a late model who knows what with big wheels, etc. We are rocking my 10+ year old F150.

However, I'm living off dividend investments and savings while traveling on my boat. I might be wrong but I'll bet that other family is 2 paychecks away from bankruptcy. And those kids started a consumer lifestyle way too early.

 

[HeffDoesWant]

When I was looking at colleges, I looked at some I could not afford. I ended up going to one I could. So many kids today go to whatever school they want. I see it with my own friends kids. They all just want the dream, even though the ROI isn't there. I know families that live paycheck to paycheck and yet little Johnny goes to a 40k a year school. I even see it on a smaller scale. When I was a kid, I had a normal bike. The kids with parents that had more money had nicer bikes--Mongooses, Haros etc. I worked as a paperboy until I bought myself a Redline. Today these SE bikes are $500-$1000. EVERY kid has one. Where is the kid with the hand me down shitty bikes like in our day? Doesn't really happen now, people go into debt.

In Australia the college/university fees are more consistent between the universities, its course selection that really drives costs.
Pick a medical field and it's likely going to be 6 figures, assuming no masters.

If its something less equipment heavy its much cheaper ie business, finance, HR, IT.

Engineering somewhere in the middle.

I personally worked straight out of high school. TAFE (which I think is like community college) at 24. Topped my year which allowed me to go straight into a masters at 29.

Total tertiary education spend about $50k, masters being the bulk. It was an exceptional investment.

Bikewise i strated with a kmart cheapy, gradually upgraded it, then a Redline frame and put on all those bits. Finally sold that and bought myself a GT Fueler, an exceptional $1k+ BMX but basically I never used it. Terrible investment but I'd wanted it for over a decade so was a life goal.

 

[HeffDoesWant]

When I was looking at colleges, I looked at some I could not afford. I ended up going to one I could. So many kids today go to whatever school they want. I see it with my own friends kids. They all just want the dream, even though the ROI isn't there. I know families that live paycheck to paycheck and yet little Johnny goes to a 40k a year school. I even see it on a smaller scale. When I was a kid, I had a normal bike. The kids with parents that had more money had nicer bikes--Mongooses, Haros etc. I worked as a paperboy until I bought myself a Redline. Today these SE bikes are $500-$1000. EVERY kid has one. Where is the kid with the hand me down shitty bikes like in our day? Doesn't really happen now, people go into debt.

Forgot to add,
Education debt (HELP/HECS) in Australia is the cheapest, most flexible debt a person will ever have outside interest free loans from friends/family.

I'm by no means expert on the American system but what I do know makes it seem like some of the worst, most expensive, least flexible debt a person can have.

Finally, I always worked in a closely related field while studying so all course fees were tax deductible. I never earned much till after my masters but my $50k total spend was about $36k out of pocket.

 

[GreatSaintGuillotine]

God, when was the last time I was on a vacation? I think the only significant purchases I've made on non-essential in the last year have been a few bjj tournaments and shit for my wife. Existing is too fucking expensive

I've lived pay check to pay check until fairly recently. I'm definitely guilty of making the occasional unnecessary purchase but I don't regret ot. In the grand scheme of things that amount of money wouldn't change my situation now. I'd just have been miserable with a few extra bucks lol

 

[HeffDoesWant]

God, when was the last time I was on a vacation? I think the only significant purchases I've made on non-essential in the last year have been a few bjj tournaments and shit for my wife. Existing is too fucking expensive

I've lived pay check to pay check until fairly recently. I'm definitely guilty of making the occasional unnecessary purchase but I don't regret ot. In the grand scheme of things that amount of money wouldn't change my situation now. I'd just have been miserable with a few extra bucks lol

I think a key difference in spending habits is how much you spend on things you enjoy having long term as opposed to things you enjoy buying.

I bought a brand name leather jacket, it's really nice but I don't wear it much, but the side sleeper pillow I bought for $23 provides much more happiness.

 

[GreatSaintGuillotine]

I think a key difference in spending habits is how much you spend on things you enjoy having long term as opposed to things you enjoy buying.

I bought a brand name leather jacket, it's really nice but I don't wear it much, but the side sleeper pillow I bought for $23 provides much more happiness.

For sure. I'm very much a long term happiness and experience guy. I have very few "nice brands".

 

[AFanNotAFighter]

Americans are terrible with money and their government is 37 trillion dollars in debt.
Any questions?

 

[badascan]

Low IQ and insecurity?

 

[wlu.29]

Everyone I know with massive financial problems have one thing in common.

They let their wife make the majority if not all of the financial decisions.

That's retarded and not true at all

 

[Siver!]

That's retarded and not true at all

It might be true, it's just an anecdote, but it's definitely retarded.

Remember, all of his friends and their wives might be total airheads.

Never underestimate someone's social circle to buck the trend.

 

[PainIsLIfe]

A lot of people I know are 1 paycheck away from getting evicted but they spend GORILLIONS of dollars on useless shit and vacations.

Might be because our govt sets z bad example.

 

[Satur9]

Low IQ and insecurity?

In both cases, I prove that wrong.

It’s lack of willpower, and the need for everything right now. IMHO

 

[GrantB13]

Just for outward appearance. I remember back in my late teens thinking I needed stuff like expensive jeans and sunglasses and crap. Luckily I never spent that much on those things and I find it crazy I was wanting to spend money on that in the first place. Being impressionable and listening to rappers and such brag about their money makes you think that's the life. Buying things without anyone else's opinion but yours is the biggest cause I'd say.

I used to think at one time that it was financial education but now I'm not so sure. I think kids are taught things about finance to a degree. I remember in high school going over balancing a checkbook. Of course they aren't teaching you an investing class (even though they'll touch on it because I remember playing the stock game as well) but I think the main reason rather than not being taught is that kids really don't give a crap at that time. High schoolers won't care about learning how to budget. That's boring. Who wants to worry about retirement when you're not even sure what to be when you grow up? They are just starting to get jobs but are under 18 living at home so they can't even really do much with their own money. Some are more mature than others and will get it but a lot of them won't be bothered by that stuff.

Similar to realizing your parents were right about some things once you get older lots of people don't realize the importance of caring about the details of budgeting and smart spending until it's too late. I'm way more interested in history, science, finances, etc now than I was when I was being formally taught these topics for example. Then you have to relearn everything on your own.