#CampusProtests #youth #FinancialSecurity #GenerationalWealth #frustration
In generations past, parents always wanted their children to have it much better than they did.
Often, that was achieved. If parents worked at manual jobs, they wanted their kids to go to college, so they would not have to do manual jobs.
Many of today’s young people see no way they can have a better life, at least economically, than their parents.
That is, short of inheriting the wealth their parents accumulated.
Many of these young people come out of college with huge student debt. If they become, say, schoolteachers, there is hardly any way they can pay off that debt AND buy a house AND start a family etc., as far as they can see.
The protests on college campuses today seem to be over the war in the Middle East. But, author Scott Galloway, in his book, “The Algebra of Wealth: A Single Formula for Financial Security,” says young people are not seeing themselves as ever becoming better off than their parents.
That may lead to the frustration some students are expressing in the campus protests.
Galloway appeared on “Inside with Jen Psaki” on MSNBC May 5, 2024.
From another perspective, Nedra Rhone, “Real Life” columnist for The Atlanta Journal-Constitution, writes that this year’s college graduates may have been deprived of both of a high school graduation ceremony because of the COVID-19 lockdowns of four years ago, and now perhaps of a college graduation ceremony because of the campus protests.
You have to feel for this generation, Rhone says. Her column on the subject also was published May 5, 2024
Financial security for young people – again, short of a big inheritance from mom and dad – is getting harder to achieve.
Today, unlike in decades past, going to work is a big cost in terms of commutes, child care etc. If the return paycheck hardly compensates for that, frustration can build. Working from home, if allowed, can ease that stress, but not everyone has that ability.
The good-paying jobs that result from expensive college educations don’t pay as well as one might think, when comparing the cost of living today with the cost of living their parents faced.
Housing costs are way up from decades ago, both in home prices and rents.
If one becomes a teacher, and, perhaps, marries another teacher, even both of their paychecks may not give them enough to house themselves and otherwise enjoy life.
We are not even talking about those who do not get a college degree. Of course, those who go into the trades – plumbers, electricians etc. – can do very well because they will always be in demand. But, surprisingly few kids are exploring that route. After all, the work can be hard and long. Many may have even watched parents work hard in trades, and don’t want to do that.
So, the frustration among young kids today may have been building over time. Some may feel quite hopeless, which may spawn mental illness.
They may find the jobs they WANT to do don’t pay enough. They either have to do something else they may not like, have a “side hustle” in their free time or try to scrape together a living with what they make doing what they like.
Some still lean on mom and dad for help well into their adult lives. How on earth, some are thinking, are they ever going to retire?
There is no better formula, perhaps, than to live below one’s means, if that’s even possible, and put the leftover money into savings. Each time one gets a raise, put that into savings, if possible.
There is no easy answer for this young generation. But, by all means, they should focus on optimism, relationships and finding less costly enjoyments in life.
Peter
Tag Archives: college graduates
COLLEGE DEBT CRUSHING MANY STUDENTS
#CollegeGraduates #CollegeDebt #CollegeStudents
One graduate has resorted to selling her eggs to help infertile women.
She is one of many college graduates who have huge college debt and not enough income to easily pay it off.
Her story and others were relayed by Kala Kachmar of the Asbury Park (N.J.) Press in an article also published in the May 8, 2016, edition of The Tennessean in Nashville as part of its USA Today supplement.
About $2 million borrowers bear a $1.3 trillion loan burden, the headline reads.
“Who wants to live at home at 29? I don’t. But, luckily, I can. … I shouldn’t be living paycheck to paycheck,” the article quotes Christyn Gionfriddo of Neptune, N.J.
Let’s examine what has happened. We have gotten constant messages for decades that to get a good job, one needs a good education – a college degree. Colleges and the government have made it easier for students of all income levels to get into college.
Some of the vehicles used to facilitate students getting into college involve loans that students are not obligated to begin repaying until after graduation.
In theory, this plan works if students can convert their educations into a good-paying job.
That doesn’t always happen.
Therefore, students are graduating with huge debt that may be difficult to repay, if their incomes can’t support it.
Some, in fact, will try to avoid repaying it.
What’s a young person to do?
First, determine in your high school years, whether college is right for you.
It’s certainly a nice goal to have EVERYONE get a college degree, but today’s economics require a more in-depth thought process for each student.
Ask yourself, if you go to college, what is the goal when you graduate? What kind of income will you be likely to earn with your degree? Will you need loans to get through school? What is the likelihood of you getting a job in your chosen field immediately after graduation? Will it be enough for you to live a decent life, and pay off your debt?
If you’ve determined that college is worthwhile enough to borrow money for, then watch your spending while in school. You may have to forgo some good times, get a part-time job and otherwise be somewhat miserly. Watch every dime you spend and make sure it is worthwhile.
If you determine that college may not be right for you, don’t fret. There are other ways to make an income without having to worry about what kind of job you have. For one of the best, visit www.bign.com/pbilodeau. You’ll see people of all income and education levels spending less, and potentially earning enough to pay off any debt promptly.
In short, don’t view going to college as an automatic decision. Don’t view your education as an interlude to be young, boisterous and have a good time. Because, when you grow up, there could be a big debt welcoming you to adulthood.
Colleges don’t care what happens to you once you get out. But you should take that into account before deciding whether to go to college.
Peter
TUNE IN: DON’T DROP OUT
We’ve all heard about students getting through college, not finding jobs and facing mounds of debt.
Was the education worth it?
But what happens to students who start college, don’t finish, and still have lots of debt?
Ben Casselman, writing for The Wall Street Journal, says these dropouts’ job prospects are a whole lot worse than those for kids who finish college.
Casselman’s article presumes the student’s decision to drop out was his. But, in fact, many parents are pulling their kids out of school for financial reasons.
It brings to mind the financial services ad on TV, in which the father, worried about losing his job, feels pressure to pull his daughter out of school for a semester or two. He knows his daughter is enjoying her college experience. Then, dad gets word that his daughter has made the dean’s list. He then decides to work with his financial adviser to figure out a way to keep her in school.
Let’s take a look at this situation. First, if a student is already in school, and doing well, even though debt is being accumulated, would there be a great difference between paying off a $10,000 debt with reduced job prospects, and paying off a $40,000 debt, with better job prospects?
As a parent, did you and your child talk long and hard BEFORE the student went to school, about how his or her education would be paid for? Did you and your child discuss what would happen if dad, mom or both lost jobs? Would they drain their retirement account(s) –probably not a wise decision –to pay for their child’s education?
Would the student assume ALL the debt for his education, or does the student expect help from his or her parents to cover that? A student may get his or her first lesson in responsibility if he or she KNOWS he or she owns that debt. He or she may think twice about what they study in school, how hard they will work at school, whether they will get a part-time job while in school and what other sacrifices he or she will make.
NOT ALL COLLEGE DEGREES ARE CREATED EQUAL
If a student wants to major in, say, the liberal arts – students are urged to follow their passion – is there a discussion among student, parents, high school or college counselors and other trusted adults about realistic career options? If the realistic career options are few, and the student still wants to study, say, music or drama, is there a discussion about what the student will do to earn a living after college, while he or she pursues his or her passion?
There are oodles of options for any of these situations. First, discuss the student’s hobbies, to see whether there are possibilities of earning money with them. For example, is the student gifted in music, but also likes to tinker with cars? Perhaps the hobby will help the student make a living, until the student’s passion becomes monetized.
Second, there are many ways to make money regardless of education. To check out one of the best, visit www.bign.com/pbilodeau. Having a financial Plan B early in one’s career may give a student time freedom, and financial freedom to pursue his or her passion sooner rather than later, and also pay for his or her liberal arts education. This may also be a great option for the student who has already dropped out, and is saddled with debt. It may not matter how dismal that former student’s job prospects are, if the former student sees the program and diligently works it.
Most importantly, it’s paramount to make decisions on how to deal with all eventualities BEFORE the student starts college. If the student, for some reason, doesn’t do well in school and has to leave, plan early for what will happen next. Parents, meanwhile, have to decide how their child’s education would be paid for – regardless of what happens to their job(s).
The moral: plan early. Don’t force a situation no one wants, without some backup plan. Not all college educations are created equal. Passions don’t always produce incomes. It’s always better to plan your life, and make your income work around it, as opposed to planning your income, and working your life in around it. Sometimes, though, you plan your income and eventually gain your financial freedom.
Plan for surprises. They are sure to come.
Peter