Filed under: Life, Money | Tags: Financial, Gen X, Gen Y, McMansion, Recession, SUV, Troubles
Is a recession necessary for each generation to financial difficulty experience? Does being put through a recession create more mature and wiser investors?
These are some of the thoughts I have been having lately. When I was a wee little baby, the stock market collapsed over in the U.S. and the Australian dollar plummeted with it. My parents survived through this and I believe they are the wiser because of it as both are doing quite well today. I’m reasonably happy with my financial status as I can afford to take an overseas trip every year, whilst my brother is debt ridden. I’m not sure why that is as we both had the same up bring. I think financial stability is a sign and reflects the maturity of an individual.
Currently there is a big flap about the interest rates on mortgages at the moment, but at the time when I was young, my parents were paying of a house with interest rates of around 12-15%. They seem to be coping fine with the current rate problem; however the Gen X new home owner doesn’t seem to be coping to well at all.
Most new home owners have just had their first or second child, driving around in a SUV, and have just bought a huge flat screen on 18 months interest free that they will forget to pay off and be stung with extra charges. So is this volatile market because of them, is it to educate them or both?
I think we will see this over our heads for the next two years or so till we wise up, sell the gas guzzler for a bike or public transport, have home cook meals in bulk instead of getting take away every night and stop buy 4 bedroom McMansions for our 1 or 2 children. Then when Gen Y has spent a few years in the workforce we will see the same again where their job hopping and instant gratification gets the best of them and the cycle can begin again.
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