Why young Americans are drowning in debt

[edmundoab]

thats where the credit card is abuse,
easy to apply and get.

hard to maintain at the spending rate =)

 

[PhoenixOrion]

if it points out that the beginning of the economic slippery slope is the use of credit cards, are there actually some activities to curb presence of credit card solicitors on campus with their free T-shirt offers?

just wondering. i know cc companies can get to you by other means.

 

[Von Ribbentrop]

Quote:

Fvcking A to your whole post!!!

Oh, and at $1,040 contribution per year ($20 per week), 18 to 65 at 5% would be approximately 185k.
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Thanks

 

[mugs]

Originally posted by: PhoenixOrion
if it points out that the beginning of the economic slippery slope is the use of credit cards, are there actually some activities to curb presence of credit card solicitors on campus with their free T-shirt offers?

just wondering. i know cc companies can get to you by other means.

The problem isn't that the credit card companies are giving the kids credit cards, that's a good thing. The sooner you start a credit history the better (for the purpose of buying a home later).

The problem is that kids use them irresponsibly. And I think they know they're doing it, they just don't care. Education in basic personal finance might help though.

 

[everman]

Originally posted by: Von Ribbentrop


At age 18, start saving $20.00 a week (one pizza) and don't touch it until you're 65. Let's be conservative and say 5% compounded annually. How much would you have?

At 5% Interest rate you would have $197,053.74
At 10% you would have $1,127,901.32

8% yields a total of $543,718.66 Which would be a pretty safe bet if you invested in stock market index fund, such as one that tracks the S&P500. I would recommend a mutual fund over an ETF in this case because you are depositing $20 per week. But if it's an annual deposit you may want to use ETFs for some cost savings (assuming low cost trades).

 

[LukFilm]

I just bought myself four free Colgate toothpastes this week 😀

 

[Von Ribbentrop]

At 5% Interest rate you would have $197,053.74
At 10% you would have $1,127,901.32

8% yields a total of $543,718.66 Which would be a pretty safe bet if you invested in stock market index fund, such as one that tracks the S&P500. I would recommend a mutual fund over an ETF in this case because you are depositing $20 per week. But if it's an annual deposit you may want to use ETFs for some cost savings (assuming low cost trades).

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I knew it was around 200k and I was being conservative on the investment side. I was making the point that you don't need a lot to start saving for the future and it doesn't have to be high risk.

P.S. Cut up the credit cards