Anya Kamenetz Generation Debt

thiso - Sunday, July 15, 2007, 1:48PM ET  Report Abuse

• Overall: 3/5

This article is all fine and good, but it needs to address something that is seldom brought up. The emphasis today is go to college, go to college, go to college. Fine. But what's happening is that people who perhaps have no business going to college are getting degrees in non-demanding majors because they're the only sorts of majors that they can handle academically. Then they graduate. With debt. And they have no useful skills to offer an employer. And they take a job they probably could have gotten without a degree only now they have X debt to pay off. Then we read articles about how college grads can't find good jobs and woe is us. The economy can only support so many art history and english literature grads. There's a reason that newly minted engineers are commanding salaries close to 60K a year...more than the average US household income.

Yahoo! Finance User - Thursday, July 12, 2007, 11:50AM ET  Report Abuse

• Overall: 5/5

I wanted to respond to the comment that although this article contains good info, most young people won't read it. I am 19, turning 20 this month and read Yahoo Finance articles on almost a daily basis. Granted I'm an accounting major, I still believe that there are a lot of young college students who are not only read and learn about finance, but also plan for the future. Keep up the good work! I look forward to more articles in the future.

Dave - Wednesday, July 11, 2007, 10:14PM ET  Report Abuse

• Overall: 5/5

Unfortunately the majority of the group of people, whom you are trying to reach, won’t read this. They are too busy with their social lives and playing video games to worry about what happens tomorrow. You are right that the solution is to learn to improve your stance no matter how the job market or tax structure changes. The secret is adaptation and continuous self improvement. This is true from how one spends and manages their finances to the way we are improving our education and experience for the job market of tomorrow.

Julia - Wednesday, July 11, 2007, 1:02PM ET  Report Abuse

• Overall: 5/5

Thank you for speaking the truth while adding enthuasism and practicality

Yahoo! Finance User - Monday, July 9, 2007, 9:26PM ET  Report Abuse

• Overall: 4/5

Unbelievable !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! "On average people between 25 and 34 are spending 16 percent more than they earn" That spells big trouble ahead!

Yahoo! Finance User - Monday, July 9, 2007, 11:37AM ET  Report Abuse

• Overall: 5/5

Good article -nice to see a young person's perspective for recent college grads like myself.

Yahoo! Finance User - Sunday, July 8, 2007, 11:52PM ET  Report Abuse

• Overall: 5/5

I came to this country at the age of 9 in 1987 and couldn't even speak English at the time. I grew up in a poor/lower middle class Asian immigrant family in New York and Delaware. However, even in high school I was planning 10 years ahead, which is why I decided to enroll in ROTC in college. (my parents wouldn't be able to pay tuition anyway). I graduated college with $0 in student loans, a guaranteed job serving my country which promoted me to an $80K salary benefits as a Navy Lieutenant at age 26 (www.dfas.mil), and I just recently completed my active duty obligation and currently working as a government contractor. I also recently contracted on a 2nd condo while renting out the first one that I bought 3 years ago. I have maxed out my ROTH IRA every year since college graduation in addition to a hefty sum in the 401K/TSP plans, and I didn't even have a credit card until senior year college. My car was paid-off 3 years ago and I plan to add another 150K miles to that little stick-shift Toyota before I get a new one. my credit score is 780, which pretty much sums up my spending and SAVING habits. for the people who are my age (29) described in this article, the only thing I have to say is: You need to plan ahead in life, everything I achieved and enjoy today are the direct results of plannings that I conducted 10 years ago. You need to consider everything from the global economy shift that's changing America's job market, to future growth in the stock and real estate markets, from now until roughly 2040, and if you can't seem to find resources to these things, then you probably partied a little too much in college. The plan should also have alternate courses of actions (plan B, C, D, etc.) and you need to be flexible sometimes. You bet that I'm also currently carefully planning the next 10...... this is a GREAT country and will remain GREAT for a very long time. Compare to ALL the other countries, this country has practically NO issue what so ever. The question is: how hard AND SMART are you willing to work to be financially successful? if you try and try and in the end still can't find a way out, then it maybe better to trade your US citizenship with someone else.....after all, people are dying everyday, as we speak, on their journeys on the dusty trails and cargo ships to that place we call The Land of Opportunity.

sammsonite - Sunday, July 8, 2007, 11:23PM ET  Report Abuse

• Overall: 4/5

Thank you for sharing your personal experiences and informing us on our generation debt problem. I ran into credit card debt problems in college and the problem just escalated, as I was ignored it for months, then years. I didnt know the effects of the 20% interest and continued to pile on debt. Fortunately, I got out of it, and found success. I am one of the lucky ones. The best advice I can give people in debt is to take responsibility. Plan your work and work your plan to get out of debt. We need to be more educated with the ramifications of spending, and the impact that will have on our future, immediate or long term. I know I wasn’t when I first signed up for credit cards. I think there should be some class on finance taught in high school, so if and when you choose to go to college, you know the traps behind signing up for all those credit cards at the fun, tricky booths. You reap what you sow. Face up to debt and stick to your plan. It won’t be easy, you can learn from your experience and grow. And yes, we live in a world where we're influence by the iPhone, xbox, plasma tvs, tiffany jewelry, etc. It's all about the money. Who wouldn’t want that? The majority of us want cool gadgets, cars, and big homes. I'm definitely not saying if you can't afford it, don't buy it. Because in the end, its about choice. We have the freedom to do what we want w/ our money/credit. We have the choice to be in debt or not. If you want to pose like Rockefeller, go right ahead. I’m not gonna stop you. For those that gave advice to people in debt by saying, 'i made it by saving' or 'get an engineering degree'. That’s really great advice. Thank you for your articulate and insightful response. Your criticism helped solve the debt problem. Since that problem was so easy, please give us advice on solving world hunger.

barbaraa - Sunday, July 8, 2007, 10:07PM ET  Report Abuse

• Overall: 3/5

Uniiversity degrees are fine for your general knowledge but it does provide the student with a marketable skills Obtaining a university degree and a technical skill is more profitable in the workforce then years of postgraduate degrees.

Yahoo! Finance User - Sunday, July 8, 2007, 8:07PM ET  Report Abuse

• Overall: 5/5

just go ivy

finbillonyahoo - Sunday, July 8, 2007, 7:09PM ET  Report Abuse

• Overall: 5/5

I agree creating a financial blog is the closest I came to finding a job that suits my training. I am 31 and a security guard with a college degree and experienced all the things mentioned above with the exception of credit cards and student loans. I do have health care debt because I don't have a medical card.

Wendy - Sunday, July 8, 2007, 5:55PM ET  Report Abuse

• Overall: 1/5

"What we're not"?? right, people in generation debt are all about entitlement. I am 28, and have worked in several jobs, none of which was particularly high-paying, and yet I have been able to save enough in 7 years to have over 2 million dollars when i retire. Unlike most of my friends, i have been one of the only ones responsible enough to not but starbucks every day, not eat out at fancy restaurants that cost a full day's work, and not buy the latest, greatest cell phone when my current one still works fine. I do not charge things on credit unless I have enough cash to afford it, because if I don't have the cash, I truly CANNOT afford it. Few young people are willing to accept that they cannot afford their parents' lifestyle at age 25, and choose to live as if they can afford it. If that isn't entitlement without paying dues, I don't know what is!

Evan - Sunday, July 8, 2007, 5:23PM ET  Report Abuse

• Overall: 2/5

This story does not provide any useful insight and needs to expand on solutions. I also find the final pat on the back paragraph a bit annoying.

Yahoo! Finance User - Sunday, July 8, 2007, 1:31PM ET  Report Abuse

• Overall: 1/5

This story is pathetic. It literally has no value. So what it we cast dispersions about one generation to the next. What was I suppose to take away from this? I would suggest doing a little more studying, get some experience in defining what you want to say, and work with an editor that has a clue about what’s of value to your readership. If you want to be Dear Abby, great, that doesn’t take any education. CCortilet

CO skier - Sunday, July 8, 2007, 1:31PM ET  Report Abuse

• Overall: 5/5

sent to my 3 boys age 20 to 25

Steven - Sunday, July 8, 2007, 11:03AM ET  Report Abuse

• Overall: 2/5

Generation debt is clueless as well as the few generations before. A 12 trillion $ economy with 8.5 trillion $ national debt, 800 billion $ trade deficit and over 50 trillion in future obligations is not prosperity being handed down. Perhaps generation debt will be able to push it onto the next generation. Generation Doomed! In a micro level those borrowers might just be better off as the dollar keeps losing value with the weight of the nations debt and repaying the loans with cheaper money . But you would need to keep good paying jobs here to keep up with inflation and we're competing with chindia. A college education today is like a high school education 30 years ago.

Yahoo! Finance User - Sunday, July 8, 2007, 12:36AM ET  Report Abuse

• Overall: 4/5

For most people who happen to be Generation Debt, they can see crystal-clear the looming financial problems outlined in the article. However, it's easy to see and know where your problems lie. It's not easy, or very difficult to find out a solution to the problems. There are many ways to get around, but we cannot have the talent and money to get them. If that is your case, please recite the following quote I gelan from T. Harv Eker, author of Secrets of the Millionaire Mind; mastering the inner game of wealth.... Eker said: " If you don't have a brilliant business idea, not to worry:... you can join a network marketing company... If it resonates with you, netowor marketing can be a dynamite vehicle for wealth... Network marketing will only work if you do. It will take training, time,and energy to succeed. But if you do,incomes in the range of $ 20,000 to 50,000 per month-- that's right, per month-- are not uncommon. In any case, just signing up and becoming a part-time distributor will give you some excellent tax advantage, and who knows, maybe you'll enjoy the product enough to offer it to others and end up making a nice income to boot." If you think what Eker said makes sense, send an email to 1682@caifu@comcast.net, and Ted will tell you to join an inspiring network marketing company, which prpbably produces a silver bullet to your financial troubles. Good Luck.

Yahoo! Finance User - Saturday, July 7, 2007, 11:16PM ET  Report Abuse

• Overall: 4/5

There are many things to consider before anyone criticizes young people. Unfortunately our older generations trusted the politicians and allowed them to squander Social Security as well allowed them to created a 100% fiat money system riddled with inflation. This is the reason that young folks have no hope of getting ahead. It is a debt based system and the bankers and federal reserve will do anything and everything to keep you in debt. They also teach nothing about money or finance in public schools which is of course by design. If young people knew the truth they would vote quite diffently. We have a dishonest money system that allows the government to print money out of thin air (based on the creation of debt). This in turn creates inflation causing the price of energy, housing, food, education, and healthcare to go up. The inflation on these items cannot be exported to China like it can for DVD players. Thus as you save money inflation slowly but surely devalues you savings. They say we have no inflation but they remove the most important items such as energy and housing from the CPI to fool us. Bottom line - voting for Ron Paul will do more for your future than investing in an IRA in a defunct system that most certainly will collapes. Read your history - all fiat empires fail because the politicans cannot control them. They become unmanageable even for a Harvard graduate.

Yahoo! Finance User - Saturday, July 7, 2007, 3:59PM ET  Report Abuse

• Overall: 2/5

I am typed as a generation Xer as I was born in 1968. However, I think that there is a huge difference between the attitudes of those who graduated from high school in the mid 80s versus the mid 90s and beyond. My class did not have cars to go to college and had little expectation of having nice things until we were in the work force for a number of years. The real difference is knowing that my parent's wealth (or lack of) was not also mine. I think that many in the latter of my generation forget that fact and expect to have the same lifestyle as thier parents without working hard, like their parents.

Nerakp - Saturday, July 7, 2007, 3:33PM ET  Report Abuse

• Overall: 1/5

Unfortunately, the economics of being young haven't changed. The stupidity level has. The basics of finance, personal or otherwise, are simple. If you don't spend less than you make and have an emergency fund, you will drown in debt. Only spend money that you actually have. Job losses, disease, car failures, etc., all happen. Ipods, new cars, laptops, nice stereo systems, cable tv, and cell phones with all the bells and whistles are not basic necessities....they are things we can live without. Most people are taught to get what they want when they want it. That's why there are so many people in horrible life-changing debt.

Kirk J - Saturday, July 7, 2007, 1:31PM ET  Report Abuse

• Overall: 2/5

I think this is an okay area for Yahoo finance to offer commentary in, but would prefer that they devoted more space to educating parents and prospective college students about reality rather than reporting ex poste on it. For example, instead of merely reporting the size of average student loan debt (What's the variance by the way? Maybe the top and bottom quartile cut-offs would offer a better idea of the range?), perhaps there could be a pre-college expert column on modern college financing issues? Does it really make a difference for employment purposes in today's labor market if you complete an Associates at a local junior/community college and save tens of thousands of dollars instead of going to a four-year-college right out of high school? What are the questions parents should ask recruiters about college placement so they get 'truthful' replies about the debt burdens and career prospects? Are there independent agencies that do 'third-party-data' collection so that people can be more informed about the costs and pay-offs to particular degrees from particular institutions? Does it make a difference to the financial aid package being received by a young person if their parents empty their savings accounts and put it all toward their mortgage, or should the liquidity of the account be maintained? The potential list goes on and on. I am confident that a Yale graduate with a degree and career in writing will offer erudite columns. I am uncertain that the informative value will be sufficient to keep me reading beyond the first couple of posts.

Eyler - Saturday, July 7, 2007, 11:55AM ET  Report Abuse

• Overall: 4/5

I am 51 years old and have two sons, 31 and 25. I am also a professor and I deal with young people on a daily basis. I think Ms. Kamenetz is on to something. First of all, it was very clever of Yahoo to have an article such as this to market their financial column to young people. Young people can relate to her. They feel her pain so to speak. Also, let's hold off a little bit on the harsh critisism. I know something about critical thinking. That's what they emphasize when you get a Ph.D. So I could rip this article (or any other article) to shreads if I wanted to (that's what we do). But this is not the time for that. Some of you have to backup and realize that this is supposed to be an introductory article for a new column. This is not supposed to have all the answers. That comes later. I think she did a great job of getting interest stirred up about the new column. She fullfiled the purpose that she set out to accomplish. She is more clever than you think. Here is why I think she is on to something: The game of life is more vicious that it used to be. There is a real war going on out there for your dollars. It is much worse than when I was growing up during the 60's. Back then, materialism was looked down upon. Simple, harmonious and spiritual lifestyles were promoted as a way to happiness. Not today. As someone else said, "They want easy come easy go. They want glamour, high heels, cosmopolitans, limos, etc etc, they don't want to live under their means. They are slaves of a TV/movie system that dictates their value system and surreptitiously makes them spend more than they should. Debt is not about an expensive life, it's about rotten values" Even I feel an entitlement (I've worked hard all my life" etc). It is an everyday exercise to remind myself that I don't need this or that. My house is still nice and is all that I need. My true enjoyments in life come from things that I can't buy anyway. But I have to consciously remind myself about those things everytime I switch on the TV or watch movies. And I have a lifetime of wisdom to keep me in line. But young people grew up in a different world than I and there are much fewer voices out there downplaying the values of materialism. So it IS harder for them and I think this column will provide a good service.

SewWhat - Saturday, July 7, 2007, 11:21AM ET  Report Abuse

• Overall: 2/5

The simple answer to developing wealth is not spending on unnecessary consumables. Stop with the ipods, cd collections, electronics, vacations, cars and fashion. Cut back on the $7 beers and stop using pot as well. Get a job and do it well. Society does not owe you anything. Live in a smaller place, get rit of cable, and don't have a cell phone and land line.

JasonB - Saturday, July 7, 2007, 10:07AM ET  Report Abuse

• Overall: 5/5

Right on the head! I need a girl that thinks like this!

Shax - Friday, July 6, 2007, 8:14PM ET  Report Abuse

• Overall: 3/5

I am also 26 like you Anya. "Generation" Debt? Generation??? NOT all of us are irresponsible deadbeats incompetent in basic math with bankrupt work ethics, thank you very much!! I worked since I was 18, have a AAA-credit rating and a 7-figure investment portfolio. The secret? There isnt one. Work smart, listen to the market, keep your costs down, dont be a loser or a lamer, dont blame your mistakes on society, learn from them! Harsh words but I am sick of people whining about their credit card balance when they spend $2K a month on designer clothes and $1K a month on car loan repayments for their Corvette. They buy crap they dont need and live beyond their means with predictable results. Predictable to anybody familiar with 4th grade mathematics anyway...

Rachel - Friday, July 6, 2007, 5:17PM ET  Report Abuse

• Overall: 3/5

Well, I'll admit - I have little savings, lots of debt with high interest, and a job that is neither extremely fufilling nor high paying. Wonderful, huh? I'm 31 now, and I just always assumed that by the time I was this age I would be earning at least twice what I am, therefore able to pay off my credit cards. It was the whole "Buy now and pay later" mentality. Oh, I was stupid and dumb! But, while I know that it was all me and my fault that landed me in this situation, I agree with the sentiment that it is harder to dig ourselves out of bad decisions than it used to be. Higher inflation, higher energy costs - these take a larger chunk out of our wages. Which, by the way, are not keeping up with inflation. Careerwise, I would love to be an engineer and earn a 6-figure salary, but I also knew in college that being an engineer wasn't for me - some people are better at certain jobs than others. I also think it's important to find a job that you actually LIKE. So my goal is to go into business for myself. If I'm not going to make much money, at least it can be on my own terms! Also, I'd like to point out a couple of things: I have never owned a pair of jeans that cost over $70 (and those were "high-end"!), I don't drink coffee, I drive a car that's 12 years old which was bought used with cash 5 years ago, I dye my own hair and wear my hair long so as to make salon visits infrequent. I also don't go out all the time - a night out at the movies is about as crazy as it gets! Those of us in the situation described above aren't all spoiled and addicted to retail therapy. We don't all shift the blame. I know I spent the money - I learned the hard way (I wish I had learned this in school!!), but it's nice to know that I'm not the only stupid one out there. And it is hard. It's hard to dig yourself out, so it's nice to hear other people's stories if only to give you a little extra motivation to keep on the track you are on. For those of you worth $1 million at age 35, who have no debt and are going to retire in their mid-40's, and who have more than one house - congratulations! You have earned what we all would like to. But while you may have many friends that share this way of life, most of us out here in America do not. This article, and others like it, are trying to help us achieve your way of life. So instead of reading these articles and slamming them, making it all sound like common sense (which it is, sometimes) and stupidity, remember that they are just trying to help those of us out that happen to not be as lucky or smart (early on, at least) as you.

BaconSkoda - Friday, July 6, 2007, 2:05PM ET  Report Abuse

• Overall: 1/5

i agree with adam. You should go for the highest paying job right out of college. Then with your buckets of cash, you can try out the writing career or philosophy later.

DAVID - Thursday, July 5, 2007, 11:32PM ET  Report Abuse

• Overall: 4/5

Living with your parents to pay off student loans and credit cards early on is a very smart financial move. So is starting an IRA account.

K - Thursday, July 5, 2007, 4:48PM ET  Report Abuse

• Overall: 2/5

I'm 32, and it's precisely the "woe-is-us" mentality reflected in pieces like this one that have given my generation such a bad name. "We've" fallen short of what our parents have achieved economically? Gosh, could it be because "we" went through high school wearing $150 shoes and $250 jeans, followed our Starbucks-swilling private school friends to $140K liberal arts colleges, and then moved to one of the world's ten most expensive cities chasing nothing but a freelance writing gig that might, in a good year, net someone 30 or 40 grand in annual salary? Hypocrisy, thy name is Anya. You know, I too have some measure of writing talent. But instead, I got an engineering degree from a (very good) state university, moved in order to further my career to places most Manhattanites couldn't find on a map, bought less house and less car than I could afford starting out, and all along made sure to pump 15% of my salary into my 401(k). Now, while "Generation Debt" moans about the inherent unfairness of life for everyone under 40, I've parlayed my mere 10 years in the workforce into a six-figure income, a six-figure stock portfolio, zero debt, and a very nice second house for my wife and son. Please ... go sell this sob story somewhere else. We're all stocked up here.

Ass CLown - Thursday, July 5, 2007, 12:01PM ET  Report Abuse

• Overall: 4/5

I thought most of it made sense. Plus, she's really hot so that makes me a reader. Looks will get you ahead in life. Let's take Trunk for example. That woman is an idiot, but still manages 200K a year for writting about what communications majors should do (be strippers). Anya, you rock.