You can read the first two posts below. Now, on to the following three reasons why the younger generations have become lost.
Encouraged To Go Into Debt By Going To College
First, the younger generations were encouraged to go into debt by attending college. College is an investment. People do not understand investments and often cannot think long-term when they are young. They go off to college because their parents, teachers, and high school counselors told them they must go. They were told they would fail if they did not attend college.
According to Forbes Advisor, nearly 60% of students who go to college have student loans and education debt. That means that six out of every ten people who go off to college end up having debt.
This teaches young people from a young age that debt is typical. That it is acceptable to have debt.
It is worth debating whether or not college is still a good investment for young people. Better options are available that do not require them to go into debt only to receive an overpriced piece of paper from a university. In some instances, they could make more than they may have ended up studying at college.
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Not Taught How To The Basics Of Money Management
Second, following the debt problem, most young people were never taught the basics of money management. They never learned to follow a budget and do not know the different budgeting strategies. They most likely spent most of their lives in college, so they don’t have enough money to learn about investing.
A young person probably couldn’t tell you the difference between investing and speculating. Although, most people probably speculate more than invest in the stock market. They probably don’t know what a P/E ratio is.
They do not know the difference between equities and real assets. It likely wouldn’t matter since the average Millennial cannot afford a home. A person cannot get ahead in life without a solid financial foundation. That has been torn away from young people with the rising cost of living, real estate, and necessities as a result of the everything bubble.
Most are still living with their parents because they probably decided to go to college, then had to work a dead-end job anyway. Younger people must find a creative way to make enough money to afford even to do basic things in Western countries, which have become expensive.
Keep Up With The Joneses And Kardashians
From social media to entertainment, young people are taught to want to keep up with the Joneses and the Kardashians. They then want a cool lifestyle like the influencers they follow on social media who show off their mansion, sports cars, and boyfriend or girlfriend.
They want to have that lifestyle, too. They don’t know all of the backend work required for the influencer or celebrity to get to where they are. So, young people will likely put everything on a credit card to show their friends that they live a fantastic lifestyle.
They likely don’t have enough money to pay for a car or house in cash, so they must put it on a credit card or rent. They want all the latest technology and gadgets, so they buy those to appear cool to their friends. They may also want to buy the newest fashion clothes to be trendy.
They may not be able to afford any of these things, but they put up the appearance of being successful. Other people will then want to be like them.
Summary
As a result of going off to college, the younger generations have become indebted. This has hindered their ability to get ahead financially. They then think they should have the same lifestyle as celebrities and successful influencers, further putting them into debt. Finally, they were never taught the foundational principles of money. Add to their financial troubles the problems of the everything bubble that has priced young generations out from conventional ways of building wealth. They have been forced to take on more risks to get ahead.
Most of these problems result from inflation, the rising cost of living, the increasing cost of housing, wages not keeping up with inflation, and the United States exporting jobs to other countries.
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