Posted by Dan on March 20th, 2008
Beware of any article that uses the words “my generation is…” because that means the author is about to make a massive generalization based upon his/her circumstances. This article came out in Newsweek, and here’s the premise:
Like many young professionals (I’m 36), I embraced the lessons of my seniors about hard work. Yet my generation racks up debt the way our grandparents used to squirrel away pennies.
This comparison (her vs. her generation) is specious, but that’s not my main focus. The author here has done the usual idiotic things done by people who have no financial clue - “…my wardrobe is too full. The biggest life issue facing me when I open my closet door is whether to put on an Ann Taylor jacket or a Gap sweater,” and “I bought my first two-bedroom condo (in a marginal neighborhood) for $450,000 two years ago with 5 percent down and an interest-only loan for the next seven years (note to boss: please don’t ever fire me).”
Um…ok. Eve Conant has too many clothes and blames her spending habits on the lack of home-ec classes. Right. Basic economics on this level ain’t that hard. Take the money you have and subtract the money you spend. If it’s a negative number, spend less. This ain’t rocket science.
What’s more annoying is that she only talks about avoidable debt here - clothes, house purchase, etc. The real crushing debt factor for young people is, and will remain, student debt. It’s not just the student loans, it’s the expenses incurred while you’re a student, which either are private loans or credit card debt.
I’m no angel here - when I was poor as hell and living in Chicago in the early part of the decade (hey, remember that recession?) I ran up a good chunk of credit card debt. After I moved to San Francisco, I paid it off. Part of paying it off was things like knowing how to cook and not buying new shoes until they were dead, covering scuffs and tears with shoe polish so that I could make it to weddings without having to spend another hundred bucks. I’m wearing those particular shoes now - they’re ten years old, past time to replace them as dress shoes, but they’ll still cover my feet for other occasions.
This was a long-winded rant, one that I probably shouldn’t do very often because it’s unfocused, but I really hate it when someone like Conant takes her circumstances and thinks they apply to an entire generation. It cheapens the struggles of the people behind the statistics. Not everyone is lucky enough to be able to incur tons of debt to buy from Ann Taylor and take out an unaffordable mortgage. Some of us had to in order to pay the rent between jobs. And others - people who are less lucky than I - are suffering under the weight of money they paid for an education, an education that was their only shot at a life without payday loans, bodega vig-gatherers, and fifteen phone threatening phone calls a month from the gas company.
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