Posted on 03/16/2013 10:57:54 AM PDT by SeekAndFind
Unless you’re under 40.Today,those in Gen X and Gen Y have accumulated less wealth than their parents did at that age over a quartercentury ago.Their average wealth in 2010 was 7 percent below that of thosein their 20s and 30s in 1983. Even before the Great Recession, younger Americans were on a strikingly different trajectory.
Now, stagnant wages, diminishing job opportunities, and lost home values may be merging to paint a vastly different future for Gen X and Gen Y. Despite their relative youth, they may not be able to make up thelost ground.
If these generations cannot accumulate wealth, they will be less able to support themselves when they eventually retire. This financial uncertainty could reverberate throughout the economy,since entrepreneurial activity, saving, and investment tend to build on a base of confidence and growing wealth.
Meanwhile, the country’s budget crises and public debt burden loom large, and the younger generation could be facing much highertax bills, both in total and as a share of their incomes, than their parents.
(Excerpt) Read more at urban.org ...
Photo op!
Kids may be ignorant and lazy, or at least noteworthy than previous generations, but things really have changed.
When my dad graduated from engineering school in the 50s, he told.me he could have bought two houses, “but what would I have done with the other one?”
When I graduated engineering school in ‘84, I couldn’t afford a condo.
Things are even worse for this generation.
My survival plan for my family, is to have my kids skip college or commute to a cheapo one, then work while living at home. They will pay for their food and rent, but hopefully they will be able to put some money away before they get married.
No more debt. The end is near. The clan is back.
And when the big financial collapse happens, that pumpkin will be small and rotten. Reality can be such a ruthless teacher. Build an extra bedroom in your house, cause they will come to visit for a long stay.
Not only are Generation X and Y’ers screwed - so are the Baby Boomers. Baby Boomers will depend on these people to pay their Social Security, if they don’t have the money, then the Gov’t won’t have it either.
Also, expect more generational class-warfare. Poorer Gen Y’ers are going to be looking at Boomers relative wealth, and encouraged by the Left, will ask why these old codgers have so much more they do. As Obama said - wealth is good if you spread it around. Bring on the death panels!
Finally - what the Urban Institutes policy recommendations? MORE Gov’t programs for “wealth creation” among Gen X’ers and Y’ers. Good luck with that.
One area that Gen X folks are lucky is housing. We were able to buy a home in Annapolis MD for about 300K LESS than what we would have paid in 2007-8. Gen X has a lot of positives financially.
“The kids I know in their teens, 20s and even 30s want nothing much more than their I-Phones and a small car!!”
Worse, that’s all that they can even imagine.
I guess in 1983 I was saving money because I didn’t have cable, cell phone or internet. Add up the cost of those and you can see the savings. The more you are able to save when you are young the less you will need to save when you are old.
Our 25 year old took his Master’s right after his Bachelors.
Got married a couple years ago, owns a home now, owns 2 cars, not late model, but nice (no car debt). Been with his present company for 2 years (he graduated younger than most with his Masters) and the promotions and bonuses are starting to come. He’s doing good and very pleased.
But I know a lot of his friends, and they’re doing well also. Young marrieds, making good salaries, getting promotions, saving up enough to buy a house, and a few have already bought. (btw, the housing market is perfect, low prices, really low interest on a fixed 30 year 3.5 when our kid bought.)
So none of his friends, that I know, are really struggling. They have degrees, some Masters, jobs in their field. Little debt. I don’t know what the difference is between him, his friends and the kids I read about who are having a hard time. (All the kids that are his friends, and most of their spouses were homeschooled...could it be as simple as that...I don’t think so, but I have no explanation.)
And it is not only all they can even imagine....they are pawning this lifestyle off on their kids.
We have two grandchildren staying with us this weekend from the aforementioned step son and daughter in law. All they want to do is video games or go to a movie...they’ve been slapping our dogs around, won’t go to bed, won’t eat what we prepare for them because it is not fast food...and on and on..
We try to discipline them a little. they won’t even listen.
I mentioned that they needed to go back to their 24 year old aunt’s house and I thought my wife would never talk to me again....
I dunno... My 25 yr old son has a finance degree and a crappy bank job, making less money than I started out making 32 years ago....
And yet?
He has MORE MONEY saved in the bank than I had until I was 40 years old.
Living with me has really cut his expenses.. :-(
My parents were hired by the State of California before all the racial and gender quotas, put up with the nonsense for 30 years, and are now drawing pensions and benefits that are bankrupting the state.
Gen X and Gen Y don’t have the same socialist fantasy world job opportunities available, and get to foot the bill for the generations who did.
Roughly Gen X is 1963-4 to 1980-1.
Knowing about money and budgets I think is even more important than what job you have. And this is hardly taught anywhere.
We have two grandchildren staying with us this weekend from the aforementioned step son and daughter in law. All they want to do is video games or go to a movie...they’ve been slapping our dogs around, won’t go to bed, won’t eat what we prepare for them because it is not fast food...and on and on..
We try to discipline them a little. they won’t even listen.
I mentioned that they needed to go back to their 24 year old aunt’s house and I thought my wife would never talk to me again....
So none of his friends, that I know, are really struggling. They have degrees, some Masters, jobs in their field. Little debt. I don’t know what the difference is between him, his friends and the kids I read about who are having a hard time. (All the kids that are his friends, and most of their spouses were homeschooled...could it be as simple as that...I don’t think so, but I have no explanation.)
Yes home schooling does seem to be the key. The more individuals are kept in a culture that emphasizes traditional values, discipline, hard work and deferred gratification the more mature, functional and competent to deal with the challenges of real life. We live in a toxic culture that is in every way adversarial towards the values that have sustained us for nearly four centuries. The current lords of creation want a population that is a combination of third world peasants and corrupt, weak, ignorant and self indulgent fools so that they can be manipulated with ease and turned into eager little consumerist robots.
Typically, young people of most generations don't start saving money until 10, 20, or 30 years after they leave school. All that lost time is lost compound interest (which equals wealth accumulation).
Everybody is poor in their 20s, don't worry about it. But don't fall into self-pity, or drop out of the job market.
Time IS on your side, if you cut back on the partying and "big boy toys" before you've let half of your life slip away.
But nobody should engage in inter-generational bashing about this issue. That just pushes people apart, and doesn't lead to solutions.
My net worth has probably looked like this at various times in my life, but remember these are only pictures at a certain point in life. Real wealth (net worth) is accumulated over time. That’s probably the major reason seniors appear to be doing so well - they’ve simply been in the game longer and gotten past some of life’s major challenges. Looking at the decline ages of 29-37, I have to ask what affected me at that point in my life. Major issues were a move up house with a large mortgage, cyclical declines in the general economy, family health issues, additional children, job changes, etc. Once beyond college expenses, my wife and I were able to accumulate until the financial collapse of 2008-2013. Now older, without jobs, and in an economy that doesn’t reward savings, I expect many seniors will have financial growth more closely mirroring that of 20-37 year olds.
Here’s how I see it.. Unless you have a fairly high-end education with at least a B.S., you are in for difficult times (There are ALWAYS exceptions, of course).. The major difference between today’s job market and that of 50 years ago is that 50 years ago you could buy a home on a single income and have a ‘stay at home mom’ family with less than a high-end job, such as gas station mechanic. You just can’t buy as much anymore with a mid-range job requiring less than a high-end education. Sadly, the ‘protected class’ nightmare in the workplace has all but nullified the importance of working hard, unlike 50 years ago where hard work was the key to raising your income, regardless of your education.
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