Series on Gen-Z & millennials struggles with expenses/debt

[winerwin]

@maxi00 Not all parents are fiscally responsible. Having an outside perspective is good.

 

[maxi00]

@winerwin Having any perspective is good, starting with the parents.

 

[mydogs]

@willowsbible Are you looking for American citizens or citizens of the world ?

 

[willowsbible]

@mydogs Hi, thanks for the message! I'm looking for those who live in the U.S. and bank/work/use money here. Other countries have different financial systems, so it's not always apples to apples.

 

[alypius]

@willowsbible I grew up in a family of six that were borderline poverty line. I remember lots of times where members of our congregation had to bring us groceries or help us keep the lights on for us to survive. I remember my mom couponing like a crazy person and how embarrassing that was for me. I remember what a relief it was for us when an Aldi opened up nearby and our grocery bill was halved. I remember growing up without television, and how we always used to borrow DVDs from the library and watch them on the family desk top. I remember a rich family friend buying me clothes and my first bra when I was 9 because we couldn't afford it. I remember how most of my clothes were cast offs from other neighbourhood girls who had outgrown them. I remember the year my brothers and I were left totally alone most of the time because we were homeschooled and the recession had hit, forcing both parents to work insane hours just to try and meet the mortgage payment.

I remember a lot of shit.

Now I'm 21, and all the things I learned growing up have helped me survive. I'm doing well now, but I the habits I formed when younger and extremely poor have never left me. I was lucky enough to get a full ride to university (so no debt beyond car), and I learned how to survive on bulk meals (big pots of lentils, chilli, potato soup), $50/wk for all groceries and misc household items, and no credit card debt. I took up cheap hobbies, I use the library and Overdrive for entertainment. I have a strict budget and a stricter savings plan. From the outside looking in, I have it made. But it's taken a lot to get me here.

 

[myheartisyours01]

@alypius I have no doubt that you struggled and that it was hard, upvoted as well bc I grew up in a similar realm and I’m only slightly older than you, but honestly this type of upbringing is a lot more common and normal than you think... not saying to invalidate you but you narrated it in a way that was strange to me, but honestly we are the lucky ones that know how to live in this economic climate BECAUSE of our upbringing. It’s good that you remember and a blessing. Where did you grow up if you don’t mind?

 

[alypius]

@myheartisyours01 I mean, yeah, I know it's common. Sorry if I misunderstood, but I rather thought the point of this is whole thread is that poverty is normal and that's nuts. Especially since the culture in the States is that we "keep up with the Joneses" and never ever talk about poor people, because it's always their fault they're not trying hard enough etc etc

We grew up all over the states. Illinois, Indiana, North Carolina, Georgia, Florida, Texas. My parents moved us every year or two because they couldn't find stable work.

There's a lot more here that I left out because I wasn't sure it was universally applicable, like crushing medical debt because both parents and one brother all got cancer at different points, and bankruptcy, government welfare. Stuff like that.

Edit: okay I reread the original post. I guess OP's target was specifically millennial/gen Z, my bad. I just saw "struggling to make it work" and started typing lol. Sorry about that.

 

[ethebear]

@willowsbible Many of us older millennials were graduating and competing against people who were getting laid off during the mortgage crash. Boomers were taking our entry level jobs. Myself and most of my friends in college then went on to graduate school (some PhDs) to see if the wave would settle after 2-3 years. It didn’t. I was 26 in 2014 working full time and still had former classmates who were college educated and working at Walmart. When I did move out of my parents house, I illegally lived in a subleased basement and barely could afford that (lead paint, no fire exit, slept next to a gas furnace). But after falling asleep behind the wheel on my hour and a half commute from my parents house to work, it’s not like I had much of a choice than to rack up credit card debt. Now I’m 30, my car is dying. I have a good job, I can afford rent but should I need to replace my car - I’ll be putting myself in credit card debt again (even if it’s used). Oh and I still have an hour commute to work. Part of me wants to say fuck it and stop contributing 15% of my income to my 401k

 

[abdurrashid]

@ethebear I was talking to someone about this recently. It’s really difficult for me to see the value in saving up so much income for something so far away when I’m broke NOW and these bills need paid NOW. The student loan folks won’t wait to get paid back, the stupid credit cards I took out won’t wait to get paid back, and I still have to live on this meager salary drowning in consumer debt to stay afloat. Need a Masters to move ahead but can’t afford a Masters even if I wanted to go through the hell of more schooling, which I don’t. Everyone is so quick to offer advice as if we’re living in the lap of luxury and eating $14 avocado toast, but I think most of us are just pissed off and depressed because this virtual employment Mecca we were promised once we put our nose to the grindstone through all the bullshit tests/papers/over-worked/awful burned out teachers through middle, high school, and college isn’t there and when we complain, they tell us to stop buying Starbucks.

 

[ethebear]

@abdurrashid You summed my feelings up nicely.

 

[rosecloud]

@ethebear My kids also went through that, and I was looking for a job when the crash hit. All of one son's roommates (3) had multiple jobs to pay for both the rent and student loans. When the crash hit, every one of them lost jobs, and all of them had to move back with their parents. Now for the advice portion of this show: if your employer matches any of your 401k, no matter what happens, always contribute at least that much. I am hoping you have an emergency fund of some kind, any kind, and if not, it's a good idea to try to put a little bit out of every paycheck into savings. I saved up a downpayment on a house that way, so I know it works. 5$ here, 20$ there, 100$ at the end of the month. I hope you find a better car, I'm sure there are some reasonable beaters out there. Or you could keep looking for a room nearby your work. Best to you, I understand your pain.

edited to add a couple of links you might find useful:

https://imgur.com/fb7Dtmh

and I love this wiki. It's an education in itself, reading it daily with my morning coffee helped me improve my understanding of financial stuff.

https://www.reddit.com/r/personalfinance/wiki/commontopics

 

[ethebear]

@rosecloud Thanks for your kind words. I am fortunate to have Parents who understand and always expressed to “pay yourself first” in the logic about 401ks and retirement. And to keep making car payments to a savings account as an emergency fund. Nevertheless, it’s disheartening when emergencies arise and that fund decreases.

My SO and I are careful with money but are slaves to student debt. Thank god we both went to in state public universities. It could be worse. But I still have a lot of angst about our current society, politics, and public health.

This angst makes me want to rebel and be stupid with money because if we’re already to our necks in student debt. So what’s a little more right? So you put a vacation on a credit card so that for two weeks you don’t feel like a slave with no purpose in living. We personally haven’t done it. We have friends who have though...

 

[rosecloud]

@ethebear I hear you. I'll spare you my rant about the University system and how the financial aide counselors are there to fill the seats, not to help the students out, and how their hubris jacks the price up far beyond what is necessary or even justifiable. Oh yeah, I was going to spare you that.

But there are cheaper ways to go on vacation; we used to like to go camping in those days. The sound of the crickets in the evenings, cooking over a campfire, listening to the wind in the trees, looking at the stars... Ahh, makes me want to go now. And my dog and I used to find places to go hiking nearby and go on long walks in nature of some sort. It really helped me, but then I'm a nature lover. Maybe you can find something less spendy as well.

 

[ethebear]

@rosecloud Exactly. We personally haven’t racked up debt for vacation - we just know plenty of friends who have. The temptation to follow suit can be strong at times, that’s all.

 

[destinyscott]

@willowsbible Are you looking for people who are struggling to manage it? Or are you also looking for people who are managing it okay?

 

[willowsbible]

@destinyscott Both. I think it's important to not only talk to folks who are struggling, but also those who are managing it (and share the secrets of their success, of course!).

 

[destinyscott]

@willowsbible Ah I see, we'll I'd be interested in offering my perspective if my situation can prove interesting to you.

I'm one of those folks in a high income/ high debt / high expense situation. I do a lot to keep things under control! If you're interested, we can PM and I can tell you more!

Either way, I'll be keeping track of this series for sure!

 

[userunknown19]

@destinyscott Yeah, same question. I am extremely lucky in my situation IMO because i only have $25k in loans left between undergrad/grad & make enough money to aggressively pay them off. I wonder if theres a place for a diversity of post-college experiences in your piece or if you are focusing on a specific demographic.

 

[juliema]

@willowsbible Millenial here. This hit me hard.

When I was 19, I moved out of my mom’s house. Wasn’t a very good relationship, so I was eager to leave.

I enrolled in a community college, with plans to transfer to a four year school. I didn’t know what I wanted to do, but I was pushed in that direction anyway.So I just picked something and studied it.

Even though tuition was covered by grants, I took out a $3000 student loan so that I could pay for basic transportation, books, and housing.

I lost my job shortly after the semester started and only had the loan money to live off of for a while. Stupidly, I figured since I was in school, it would be better to focus solely on school anyway.

I made it through that semester - only barely! I was the brokest I had ever been. No more loan money, no job, savings drained, CC maxed. I applied to literally hundreds of jobs throughout the semester, since I know it takes employers half a freakin’ decade to even look at your application. I went in person, only to be told to go online and apply. But when I applied, it’s was as if I was throwing my resume into the void.

I enrolled in a second semester, knowing I’d get about 1k back. Not much, but it would be 2 rent checks. I used to go out on dates just so I could get a free meal. I stole toilet paper from the school restroom. I was literally Felicia from Friday. And it sucked.

So I dropped out of school. I felt like a failure. But bills needed paid. I finally got a job as a home health aide, and busted my butt trying to get my head above water.

I finally started to get ahead after months and months of working 60-70 hours a week. I hated every minute of it. But it helped me pay of my CC, build a small cushion (1k), and prepay my rent for a few months (which I’m glad I did, since clients in home healthcare sometimes pass or are moved to a facility).

Oh, and remember that 3k student loan? It took me five years to pay off because money was needed elsewhere. I wasn’t frivolously spending, I was that far in the hole.

Luckily I never took a payday loan out. I definitely considered it though, but thankfully, the guy I was dating at the time had strongly advised me against it. I had no idea how easily it could ruin someone.

If I would have had more financial knowledge, I wouldn’t have done any of this. I’m just now starting to recover financially, but I still have a way’s to go.

 

[babytosin]

@willowsbible I work for the government, they don't compensate me for my Master's Degree or extra pertinet job related credentials and I live month to month. With lots of personal and student debt to get here - I'm interested in participating.