Comments on: The End of the World as We Know It? http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: Blog Roundup/Our Common Cents http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-318120 Blog Roundup/Our Common Cents Wed, 04 Jun 2008 13:09:33 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-318120 ...Meg at All Financial Matters talks about the end of the world as we know it, aka the personal finance brain drain for our generation, a topic near and dear to Our Common Cents.... …Meg at All Financial Matters talks about the end of the world as we know it, aka the personal finance brain drain for our generation, a topic near and dear to Our Common Cents….

]]> By: Meg http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-317299 Meg Mon, 02 Jun 2008 18:24:03 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-317299 Sam - you are probably right. People are remarkably resilient and resourceful - when they have to be. Sam – you are probably right. People are remarkably resilient and resourceful – when they have to be.

]]> By: sam http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-316198 sam Fri, 30 May 2008 19:35:10 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-316198 Meg, Don't be so down - it isn't that bad. Sure there are a lot of financially ignorant people out there, but there are a lot that know what they are doing. Nearly all of my family and friends are doing well; saving, investing, keeping debt under control. I think a lot of it comes down to the fact that we have had it pretty good for the last couple of decades (despite what our media would have us think). Unemployment has been low, wages have been increasing gradually, inflation has been low, and the stock market has been going up, house prices have been going up. In that kind of a world, the virtues of thrift and frugality don't make much sense for many people. It makes more sense for them to enjoy life by buying things they don't need with money they don't have. My parents grew up during the Depression, and learned through painful experience to be frugal and thrifty. It wasn't because of some inherent virtue or intelligence on their generation's part (although many have that as well). Few people my age or younger have had to experience that kind of world. Meg, Don’t be so down – it isn’t that bad. Sure there are a lot of financially ignorant people out there, but there are a lot that know what they are doing. Nearly all of my family and friends are doing well; saving, investing, keeping debt under control.

I think a lot of it comes down to the fact that we have had it pretty good for the last couple of decades (despite what our media would have us think). Unemployment has been low, wages have been increasing gradually, inflation has been low, and the stock market has been going up, house prices have been going up. In that kind of a world, the virtues of thrift and frugality don’t make much sense for many people. It makes more sense for them to enjoy life by buying things they don’t need with money they don’t have.

My parents grew up during the Depression, and learned through painful experience to be frugal and thrifty. It wasn’t because of some inherent virtue or intelligence on their generation’s part (although many have that as well). Few people my age or younger have had to experience that kind of world.

]]> By: luxuryoption http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-316197 luxuryoption Fri, 30 May 2008 19:27:21 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-316197 "Another part of the problem could be that no one in the younger few generations has ever faced a major threat to our way of life - no major wars or recessions, for instance." We are in a major war (don't take offense if you don't agree). This is the 1st genertion that has not been conscripted to fight - as a result of an entirely voluteer based military, which is incidentally, comprised of mostly young people in their 20's-30's. Good post “Another part of the problem could be that no one in the younger few generations has ever faced a major threat to our way of life – no major wars or recessions, for instance.”

We are in a major war (don’t take offense if you don’t agree). This is the 1st genertion that has not been conscripted to fight – as a result of an entirely voluteer based military, which is incidentally, comprised of mostly young people in their 20’s-30’s.

Good post

]]> By: Meg http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315984 Meg Fri, 30 May 2008 05:15:00 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315984 Well I'm glad I'm not the only one! Though I don't believe we're a lost cause, by any means. I think perhaps I've found the cause I'm willing to give/invest in... Well I’m glad I’m not the only one! Though I don’t believe we’re a lost cause, by any means. I think perhaps I’ve found the cause I’m willing to give/invest in…

]]> By: Heidi http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315940 Heidi Fri, 30 May 2008 02:37:13 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315940 My future mother-in-law and I were just talking about this very thing! She thinks (and I tend to agree) that Gen Y's general sense of entitlement combined with helicopter parents just compound the problem. It's hard to think for yourself if you have never had to try it. My future mother-in-law and I were just talking about this very thing! She thinks (and I tend to agree) that Gen Y’s general sense of entitlement combined with helicopter parents just compound the problem. It’s hard to think for yourself if you have never had to try it.

]]> By: sandra Leegh http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315898 sandra Leegh Fri, 30 May 2008 00:19:01 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315898 I thing we are getting dumber and information overload is helping it. We can all find information if needed but we don't know how to use it wisely. We don't know how to put two and two together to make good decisions. And parents who kept on telling us that we were special did not help either. We may be special to our family and friends but not to others. We Americans want to lead the world??? I am afraid that we are not qualified for the role...not yet. I thing we are getting dumber and information overload is helping it. We can all find information if needed but we don’t know how to use it wisely. We don’t know how to put two and two together to make good decisions. And parents who kept on telling us that we were special did not help either. We may be special to our family and friends but not to others. We Americans want to lead the world??? I am afraid that we are not qualified for the role…not yet.

]]> By: Jeremy http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315861 Jeremy Thu, 29 May 2008 22:25:19 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315861 I actually had a conversation with the guy that came over to repair a regulator on our propane tank today. When he came in to have me sign the paperwork, he got talking, and he eventually asked what I do for a living. Of course, as soon as anyone hears what I do, they quickly go into asking for advice. The first thing he complained about was his wife's 401k, saying he lost money last quarter, and since they were losing money, they stopped making contributions! He ranted a bit saying they would be better off making 1% interest in the bank, and so on. And when asked, he of course said he doesn't participate in his company's 401k at all, even though they offer a match. Clearly, I couldn't go into a lecture on the basics of pre-tax and tax-deferred saving, dollar cost averaging, and all that, but it is always shocking to hear so many people with the same mindset. To make things worse, he was also quick to brag about his 29 foot twin-engine boat and souped up truck. Probably sitting on, and still making payments on 150k worth of depreciating assets in the truck and boat alone, yet stops contributing to a 401k when a few bad months hit in the market. And I agree it isn't a young person problem, because this person was in his 40s, and I encounter this type of mindset every day, many are even older. I actually had a conversation with the guy that came over to repair a regulator on our propane tank today. When he came in to have me sign the paperwork, he got talking, and he eventually asked what I do for a living. Of course, as soon as anyone hears what I do, they quickly go into asking for advice.

The first thing he complained about was his wife’s 401k, saying he lost money last quarter, and since they were losing money, they stopped making contributions! He ranted a bit saying they would be better off making 1% interest in the bank, and so on. And when asked, he of course said he doesn’t participate in his company’s 401k at all, even though they offer a match.

Clearly, I couldn’t go into a lecture on the basics of pre-tax and tax-deferred saving, dollar cost averaging, and all that, but it is always shocking to hear so many people with the same mindset.

To make things worse, he was also quick to brag about his 29 foot twin-engine boat and souped up truck. Probably sitting on, and still making payments on 150k worth of depreciating assets in the truck and boat alone, yet stops contributing to a 401k when a few bad months hit in the market.

And I agree it isn’t a young person problem, because this person was in his 40s, and I encounter this type of mindset every day, many are even older.

]]> By: Chris http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315852 Chris Thu, 29 May 2008 21:54:52 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315852 I went through elementary school, high school, and 4 years of college without anyone ever mentioning compound interest! Even the math classes! Fortunately I had the motivation to learn personal finance on my own...but our education system has a big hole there. I went through elementary school, high school, and 4 years of college without anyone ever mentioning compound interest! Even the math classes!

Fortunately I had the motivation to learn personal finance on my own…but our education system has a big hole there.

]]> By: peter http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/comment-page-1/#comment-315842 peter Thu, 29 May 2008 20:53:03 +0000 http://allfinancialmatters.com/2008/05/29/the-end-of-the-world-as-we-know-it/#comment-315842 I think has less to do with "kids these days" and more to do with human nature. It really isn't part of human nature to "save", be it cash or crops. Why does the Bible remind us so often to save for the lean years? Because otherwise we wouldn't do it ourselves. Those of us reading this blog- The Savers- are the exception. Earlier generations had forced savings via pensions, which was actually cash they never saw in a paycheck or 401k statement. While it may chafe those of us who "get it", manditory 401k enrollment is probably a good idea. Sometimes you have to give give Human Nature a push in the right direction. I think has less to do with “kids these days” and more to do with human nature.

It really isn’t part of human nature to “save”, be it cash or crops. Why does the Bible remind us so often to save for the lean years? Because otherwise we wouldn’t do it ourselves.

Those of us reading this blog- The Savers- are the exception.

Earlier generations had forced savings via pensions, which was actually cash they never saw in a paycheck or 401k statement. While it may chafe those of us who “get it”, manditory 401k enrollment is probably a good idea. Sometimes you have to give give Human Nature a push in the right direction.

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