I know why Millenials can't afford houses and pay off their student loans..

[Anonymous]

Anonymous wrote:Another millennial voice here. Not only did I have roommates, I shared a room and lived in bunk beds my first 5 years in DC to save money while I worked entry level jobs. Now I make six figures and I have paid off my student loans and own a rowhouse in DC. If I buy $38 dollar candles that's my damn business. Keep your judgement to yourself. I don't judge your shitty coffee.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

For a GEn X, you seem pretty clueless. People weren't buying homes in the 90s because they can get financing, it was much stricter back then. Into the late 90s and tech boom, that's when money started flowing.

Nowadays, any reasonable starter home is still two or three times expensive as you saw in the 90s, and being in the suburbs won't have much much more than 20 years ago. It's about having a place that they can comfortably afford, maybe grow into if they have to (so safe and decent schools) and not soul crushing commute. Not HGTV finishes. And getting that basic starter home without 1 hr plus commute is $500k easy, and that's out of reach for a lot of Gen Y with their income and loan debt, no matter what corners they cut. Condos maybe could be affordable but all that are built have way too high structural condo fees which make them a very bad deal for starter homes.

It's not fscking candles or Japanese steel.

It's not, but it's easy to figure out that younger millennials have a spending problem. Older ones too. I guarantee that have of those with student loans employ a cleaning lady. They purchase their lunches out. Expensive travel. Dining out frequently. These are all things that 20 and 30 something would have never done in generations past. You can't create wealth if you're constantly spending money on services (dog walker, manicures, grocery delivery) and entertainment.

So then they don't creat wealth to pass on to their kids (if they plan to have any). Why do you care?

[Anonymous]

Anonymous wrote:I'm an older millenial (34) and DH is 31. We lived cheaply with roommates for years in a very divey transitional neighborhood. We buckled down and paid of his high interest law school loans (we had no ugrad loans thankfully).

We bought our first house 6 years ago for just under 300k in an outer burb. We have a mortgage payment we can afford and our house is too small for our family of now 3. We had no help from parents for a downpayment, though many of my 40something Gen X friends had downpayment help, or were able to buy homes at a time that prices were more in line with income. So they are in a tony school district now and we are not.

As a millennial who has done everything right (saved, paid loans, works hard), I find it really rude that older people who truly did not have the same unfortunate economy as they were coming of age are so callous about how millennials live. Baby boomers fucked us all, Gen exers haven't helped either and now we are stuck with a baby boomer run government with Gen X chomping at the bit to take the reins and we will just be left here, hoping like hell that the retirement savings we are scrimping to put away are still there in 50 years. Because we will all surely be working until we are 80. Just remember that when you are retiring at 65 and shitting on us for wanting a work life balance. We know we have 20 plus more years of the working grind than you will have.

+1000

Also no family help, older millennial with two kids.

[Anonymous]

Anonymous wrote:If you really believe this is why we can't afford houses or pay off student loans, I have a very affordable bridge to sell you. Killer deal. But your mentality lets me know that you are def one of the ones who ruined the economy for us. Now you sit back hypothesizing about every other thing that could be wrong but you will never accept responsibility for how you set us up for failure. Thanks, geezer.

LOL Could be a lack of personal responsibility . Thanks for illustrating

[Anonymous]

Anonymous wrote:Another millennial voice here. Not only did I have roommates, I shared a room and lived in bunk beds my first 5 years in DC to save money while I worked entry level jobs. Now I make six figures and I have paid off my student loans and own a rowhouse in DC. If I buy $38 dollar candles that's my damn business. Keep your judgement to yourself. I don't judge your shitty coffee.

OK, then what OP is describing doesn't apply to you, does it.

But, to OP's point, this is not a problem with just millennials, though I think the problem has gotten worse.

Interesting article regarding how to raise kids to become financially secure:

http://www.inc.com/marla-tabaka/want-your-kids-to-become-financially-secure-adults-parents-of-todays-wealthy-did.html

"Be a disciplined saver and an opportunistic buyer.
81 percent of high net worth investors say that investing to reach long-term goals is more important than funding current wants and needs. This disciplined approach to saving and investing was instilled at an early age and becomes easier with the financial freedom that wealth affords."

The above is the problem with many Americans today.

I am a gen xer, grew up low/middle income, now earning six figures. I still don't normally buy $5 coffees, maybe once in a while, or buy expensive clothes. I am instlling these values on to my kids.

[Anonymous]

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

I'm like you. Seems current generation expects their first job and place to be their ideal and not have to work from the bottom up for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Old millennial here -- and OP I tend to agree with you. Of course it isn't one coffee or luxury knife (not that I know what that is) that'll push anyone over the edge, but there is a SERIOUS desire for luxury goods in my generation whether the salary is there or not and a desperation to "follow their passions."

I have a bunch of friends in their upper 20s living with their parents - fine, to each their own. But in my mind, I've always thought that would mean they'd be making double/triple payments on student debt + 18k into the 401k + additional cash savings that can be used for a down payment etc., bc they have no housing or food costs. And across the board each of them has told me -- oh nooo, that's really hard to do. They all work jobs in the 40-60k range -- often in start ups or non profits bc they want to follow their "passion" and can't imagine "selling out" to a Fortune 500 -- and spend a TON of money on coffee, eating out, technology, and constant travel.

My favorite though is a cousin and her DH who are ~32. Wife switches jobs every 18 months and is now in some entry level insurance claims paying job in a major city. Her DH is STILL in school -- studying to be a chiropractor and is taking on decent debt for an endeavor that may or may not lead to sizeable income. And yet they take an international trip EVERY 6 months -- once they went to Asia on the cheap; the rest of the time they are in western Europe and no they aren't backpacking or staying in hostels. I don't understand the constant need to "do what makes them happy." For course they don't understand my constant need to invest in decidedly non-passionate things like index funds and tell me I'm a "sell out."

I don't get complaints like this. If they're happy, why do you care? Maybe they value traveling more than saving for a day they might not get to experience. They are free to make that choice. Again, if it doesn't impact you, why do you care?

Bc they feel free to call me a sell out for steadily working my way up in industry. Bc they bitch and moan about how hard it is to pay off loans or buy a house in Chicago. It's not like I'm just observing their life and commenting - I'm responding to what they make me listen to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a field trip to Union Market this weekend. Filled with young people looking very spiffy, drinking $5 coffees and buying things like $30 candles and locally sourced food that is 2x the price of Safeway. There was a stall there selling $200+ Japanese knives. All this 'everyday luxury' is killing you guys.

Guess that's why all the "working poor" in rural America can't afford anything either: They're busy blowing it on $5 coffees and smelly candles.

Yep. If only they would stop buying caviar with their foodstamps.

OP you've cracked the case.

OP may be off regarding buying a home and paying for college (those are not millenial issues--those are struggling middle class issues), but he/she is on to something...
There is not enough prioritization when young people start making money. Too often luxury items are confused with or are treated as daily necessities. One example: my niece (millenial) just moved back home--but she is leasing a car! I suggested she buy a daily driver for $2k and forget the monthly payment. Living in her parents' home while driving a jeep looks better to her than sharing an apartment and driving a 15 year old honda.

So she doesn't want to drive a crappy Honda. Why should she gave to? Because you do?

[Anonymous]

I see a lot of whiners here on this thread, and 3 different generations (boomers, X, and millenials) all seem pretty well represented in the woe-is-me-I-had-it-tougher-than-you club.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Old millennial here -- and OP I tend to agree with you. Of course it isn't one coffee or luxury knife (not that I know what that is) that'll push anyone over the edge, but there is a SERIOUS desire for luxury goods in my generation whether the salary is there or not and a desperation to "follow their passions."

I have a bunch of friends in their upper 20s living with their parents - fine, to each their own. But in my mind, I've always thought that would mean they'd be making double/triple payments on student debt + 18k into the 401k + additional cash savings that can be used for a down payment etc., bc they have no housing or food costs. And across the board each of them has told me -- oh nooo, that's really hard to do. They all work jobs in the 40-60k range -- often in start ups or non profits bc they want to follow their "passion" and can't imagine "selling out" to a Fortune 500 -- and spend a TON of money on coffee, eating out, technology, and constant travel.

My favorite though is a cousin and her DH who are ~32. Wife switches jobs every 18 months and is now in some entry level insurance claims paying job in a major city. Her DH is STILL in school -- studying to be a chiropractor and is taking on decent debt for an endeavor that may or may not lead to sizeable income. And yet they take an international trip EVERY 6 months -- once they went to Asia on the cheap; the rest of the time they are in western Europe and no they aren't backpacking or staying in hostels. I don't understand the constant need to "do what makes them happy." For course they don't understand my constant need to invest in decidedly non-passionate things like index funds and tell me I'm a "sell out."

I don't get complaints like this. If they're happy, why do you care? Maybe they value traveling more than saving for a day they might not get to experience. They are free to make that choice. Again, if it doesn't impact you, why do you care?

Because PP is a miserable and judgmental. There's no other reason.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Old millennial here -- and OP I tend to agree with you. Of course it isn't one coffee or luxury knife (not that I know what that is) that'll push anyone over the edge, but there is a SERIOUS desire for luxury goods in my generation whether the salary is there or not and a desperation to "follow their passions."

I have a bunch of friends in their upper 20s living with their parents - fine, to each their own. But in my mind, I've always thought that would mean they'd be making double/triple payments on student debt + 18k into the 401k + additional cash savings that can be used for a down payment etc., bc they have no housing or food costs. And across the board each of them has told me -- oh nooo, that's really hard to do. They all work jobs in the 40-60k range -- often in start ups or non profits bc they want to follow their "passion" and can't imagine "selling out" to a Fortune 500 -- and spend a TON of money on coffee, eating out, technology, and constant travel.

My favorite though is a cousin and her DH who are ~32. Wife switches jobs every 18 months and is now in some entry level insurance claims paying job in a major city. Her DH is STILL in school -- studying to be a chiropractor and is taking on decent debt for an endeavor that may or may not lead to sizeable income. And yet they take an international trip EVERY 6 months -- once they went to Asia on the cheap; the rest of the time they are in western Europe and no they aren't backpacking or staying in hostels. I don't understand the constant need to "do what makes them happy." For course they don't understand my constant need to invest in decidedly non-passionate things like index funds and tell me I'm a "sell out."

I don't get complaints like this. If they're happy, why do you care? Maybe they value traveling more than saving for a day they might not get to experience. They are free to make that choice. Again, if it doesn't impact you, why do you care?

Because PP is a miserable and judgmental. There's no other reason.

Or bc they have things to say about the PP's lifestyle. Or bc they whine re their student loans or inability to buy a house. See above.

[Anonymous]

European here. A lot of Americans don't appreciate the finer things in life, even though they can afford so much more. A Frenchman is fine renting, a small space too, because they want to be able to buy a niece piece of cheese and wine and fresh fish and a beautiful jacket. So if the millennials are doing what you say they are doing, kudos to them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a field trip to Union Market this weekend. Filled with young people looking very spiffy, drinking $5 coffees and buying things like $30 candles and locally sourced food that is 2x the price of Safeway. There was a stall there selling $200+ Japanese knives. All this 'everyday luxury' is killing you guys.

Guess that's why all the "working poor" in rural America can't afford anything either: They're busy blowing it on $5 coffees and smelly candles.

Yep. If only they would stop buying caviar with their foodstamps.

OP you've cracked the case.

OP may be off regarding buying a home and paying for college (those are not millenial issues--those are struggling middle class issues), but he/she is on to something...
There is not enough prioritization when young people start making money. Too often luxury items are confused with or are treated as daily necessities. One example: my niece (millenial) just moved back home--but she is leasing a car! I suggested she buy a daily driver for $2k and forget the monthly payment. Living in her parents' home while driving a jeep looks better to her than sharing an apartment and driving a 15 year old honda.

So she doesn't want to drive a crappy Honda. Why should she gave to? Because you do?

Smart. She does not have to share an apartment with roomates, saves a ton of money, and drives a car that will not need maintenance. Seems to me she probably nets more than the person sharing crappy apartment and driving crappy, unreliable car.

[Anonymous]

Anonymous wrote:European here. A lot of Americans don't appreciate the finer things in life, even though they can afford so much more. A Frenchman is fine renting, a small space too, because they want to be able to buy a niece piece of cheese and wine and fresh fish and a beautiful jacket. So if the millennials are doing what you say they are doing, kudos to them.

You really cannot compare Europe to the US. You have cradle to grave social benefits - we do not. What happens when these folks who have screwed off their entire life arrive at retirement with no money? They become a burden on their children or the state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm an older millenial (34) and DH is 31. We lived cheaply with roommates for years in a very divey transitional neighborhood. We buckled down and paid of his high interest law school loans (we had no ugrad loans thankfully).

We bought our first house 6 years ago for just under 300k in an outer burb. We have a mortgage payment we can afford and our house is too small for our family of now 3. We had no help from parents for a downpayment, though many of my 40something Gen X friends had downpayment help, or were able to buy homes at a time that prices were more in line with income. So they are in a tony school district now and we are not.

As a millennial who has done everything right (saved, paid loans, works hard), I find it really rude that older people who truly did not have the same unfortunate economy as they were coming of age are so callous about how millennials live. Baby boomers fucked us all, Gen exers haven't helped either and now we are stuck with a baby boomer run government with Gen X chomping at the bit to take the reins and we will just be left here, hoping like hell that the retirement savings we are scrimping to put away are still there in 50 years. Because we will all surely be working until we are 80. Just remember that when you are retiring at 65 and shitting on us for wanting a work life balance. We know we have 20 plus more years of the working grind than you will have.

+1000

Also no family help, older millennial with two kids.

I think we all want to say we had it worse instead of imagining ourselves in the other person's shoes, and we have a lot of assumptions being made on this thread. I am 49. GenX to the max. Please don't think that you, millennial, have seen the only stock market crash since the great depression. Try Googling "Black Monday". That sucked my college money right down the drain and any help with grad school or down payment on a home right down with it.

I seem to recall being young and single and taking a ski weekend now and then.

That said, maybe Millennials aren't spending the way to OP wants them to, but that will be their problem years down the road. Aside from the OP needing Millenniasl to shore up Social Security, it should not be much of a concern to the OP.