Sense of Entitlement
“Good sense about trivialities is better than nonsense about things that matter.” – Max Beerbohm
In the November 14, 2005 issue of BusinessWeek, Susan Berfield writes about the Debt Generation in Thirty & Broke. This is “the first generation that came of age with the Internet, grew up marketed to at every turn… and they could be the most indebted generation in modern history.”
“Two new economic realities are at work. Many had to borrow serious money to attend colleges that are ever more costly. And as soon as they entered school, they were offered credit cards; by 30 many have accumulated thousands of dollars of that very expensive debt, too.”
“When these students start out in the working world, many use their credit cards to fund a richer lifestyle than they can afford, get by between jobs, or cover emergency expenses. The average credit-card debt among 25-34-year-olds was $5,200 in 2004, 98% higher than in 1992.”
They exemplify “a generation with an unusual sense of entitlement. They were brought up as consumers, comfortable with prosperity, certain of their eventual success. For many 30-year-olds, establishing themselves takes longer and is more complicated than they thought it would be.”
Suze Orman advises that young adults need to understand the difference between necessities and indulgences. “If you rely on your credit cards to make ends meet, you must limit the plastic spending to true necessities, not indulgences. Buying groceries is a necessity. Buying dinner for you and your pals at a swank restaurant is an indulgence you can’t afford if it will become part of your unpaid credit card balance.”
This takes discipline! Gerri Willis at CNN Money writes that in addition to all their financial woes that the young should be saving for retirement, “Tell any twenty-something it’s time to lay off the fun and save for retirement -- they'll think you're crazy. However, experts say there is no replacement for starting your savings early between the ages of 22 to 35. Having no retirement savings would be the number one mistake for a twenty-something to make -- it’s even worse than credit card debt.”
But isn’t that getting the cart before the horse. I thought babies had to crawl before they could walk. It all goes back to the principle… stop spending money. This is a difficult skill to master at any age.
In the November 14, 2005 issue of BusinessWeek, Susan Berfield writes about the Debt Generation in Thirty & Broke. This is “the first generation that came of age with the Internet, grew up marketed to at every turn… and they could be the most indebted generation in modern history.”
“Two new economic realities are at work. Many had to borrow serious money to attend colleges that are ever more costly. And as soon as they entered school, they were offered credit cards; by 30 many have accumulated thousands of dollars of that very expensive debt, too.”
“When these students start out in the working world, many use their credit cards to fund a richer lifestyle than they can afford, get by between jobs, or cover emergency expenses. The average credit-card debt among 25-34-year-olds was $5,200 in 2004, 98% higher than in 1992.”
They exemplify “a generation with an unusual sense of entitlement. They were brought up as consumers, comfortable with prosperity, certain of their eventual success. For many 30-year-olds, establishing themselves takes longer and is more complicated than they thought it would be.”
Suze Orman advises that young adults need to understand the difference between necessities and indulgences. “If you rely on your credit cards to make ends meet, you must limit the plastic spending to true necessities, not indulgences. Buying groceries is a necessity. Buying dinner for you and your pals at a swank restaurant is an indulgence you can’t afford if it will become part of your unpaid credit card balance.”
This takes discipline! Gerri Willis at CNN Money writes that in addition to all their financial woes that the young should be saving for retirement, “Tell any twenty-something it’s time to lay off the fun and save for retirement -- they'll think you're crazy. However, experts say there is no replacement for starting your savings early between the ages of 22 to 35. Having no retirement savings would be the number one mistake for a twenty-something to make -- it’s even worse than credit card debt.”
But isn’t that getting the cart before the horse. I thought babies had to crawl before they could walk. It all goes back to the principle… stop spending money. This is a difficult skill to master at any age.
posted by Nina Smith at 6:07 AM
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