Quote:
Originally Posted by GP_Matt
One of the big differences between then and today is the fixed monthly costs.
In 1980 people paid for their mortgage, property tax, utilities, insurance and a phone line.
In 2012 people pay for the above as well as
-$100 for cable
-$50 for internet
-$25 for long distance/call display/voice mail
-$100 for a cell bill (2 in a family)
-$400 for a car payment (Traditionally people saved up to pay cash for a car)
Just off the top of my head there is $625 in monthly bills that we have that our parents didn't have to make. And that doesn't include the extra cost to buy the computers, phones and TVs that go along with the monthly bills. Throw in the $6 lattes daily and the fact that we go out for food far more often than our parents did and it is easy to see why things look tougher for our generation.
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Yes, everyone always forgets that the average standard of living is higher today than when our parents were starting out. We definately pay for it, but most of those items are still definately luxury items. Plenty of reasonable people just starting out do not have a Cable bill, landline or car payment (buy used cars with cash). Cell phones and internet are added costs (Cell phones only because they are more expensive than the landline alternative).
The expectation of standard of living is much higher today though amoung the youth. I know people who have stretched themselves to the brink to jump straight into purchasing a 2000 Sq. ft. home for 2 people right away. On top of that, they need new cars, vacations abroad every year, etc. We, as a society have done a poor job teaching financial literacy and reasonable expectations to this generation. It takes time to work your way up to that life style (without major help from your parents). This is an observation coming from a current member of the youth (25 years old)