Am I being rude?

[Sabeking]

I've reached the "late 20's" age range now and I definitely see friends (maybe 70%) splurging more than needed. A small handful of them literally refuse to put money into their 401k bc they want that cute new Gucci bag or a vacation in Bali (the others at least splurge within their means, so i find that more "ok". although not really up to me how they spend their money). But now that you mention it...I do wonder...is it really any more than the previous generations? There's always people who are poor at managing finances...

Interesting you brought 401k up. I just had a meeting with our financial advisor yesterday. She also contracts for the company my husband operates. We have a very young staff. Probably about 30 employees under the age of 32. Not one of them is participating in 401k. Blows my mind!

 

[DisneyKoyote]

I think there will always be people like this. My parents had a lot more income than some of my friends’ parents (5 bedroom house vs. 3 bedroom apartments), yet some of them drove nicer cars. My girlfriend used to get so excited when her mom paid off some of the credit card because that meant a shopping spree at Orbachs. My 23 year old lives out of her car (plus stays here and with friends) to save money and pay off student loans (salary around $65,000). She goes out to eat with friends but hates the money part of it. Ds21 gave in an bought a new iPhone (his firs5 one was from sophomore in HS, he borrowed his girlfriend’s old one for a year but finally gave in). All of my kids are responsible to pay for their iPhones.

I don’t think it’s generational.

That's very true. My only other thought is how much did social media (instagram, youtube, etc that the older generation didn't have) influence others to live above their means? I know a few friends that were just your average spender when we were back in college, but these days (post college) they're always showing me stuff like how the new LV backpack is cute (which i will agree is cute, but would've never known about it outside of instagram) bc they've seen insta-models use them. Or literally Balenciaga shoes she thought were originally ugly but then seeing the hype on youtube, she decided she wanted them too. In real life, you wouldn't see people wearing them as much, but on instagram it's everywhere

Interesting you brought 401k up. I just had a meeting with our financial advisor yesterday. She also contracts for the company my husband operates. We have a very young staff. Probably about 30 employees under the age of 32. Not one of them is participating in 401k. Blows my mind!

I don't know why people DON'T participate, especially if your Company matches a portion of it. It's literally free money!

 

[CdnCarrie]

Re: Breakfast Club

That is one of my all time fav movies. Saw it multiple times in the theatre in high school.
Now my Gen Z kid talks about it and I'm like " um that's MY movie. "

 

[skyblue17]

I don't know why people DON'T participate, especially if your Company matches a portion of it. It's literally free money!

It took me awhile to participate, and part of why is that it's tough for younger people to part with money that they can use NOW. Sure, it may be smart to skip one meal out a week, or whatever you contribution might be, but it's yet another example of quality of life now vs. possibility of money later. Not to mention that a lot of my generation (mid-30s) question if we are really even going to be able to retire in the way retirement has been touted most of our lives.

 

[DisneyKoyote]

It took me awhile to participate, and part of why is that it's tough for younger people to part with money that they can use NOW. Sure, it may be smart to skip one meal out a week, or whatever you contribution might be, but it's yet another example of quality of life now vs. possibility of money later. Not to mention that a lot of my generation (mid-30s) question if we are really even going to be able to retire in the way retirement has been touted most of our lives.

That makes sense in your situation. I suppose I was thinking more of the people in my bubble, who wouldn't contribute or be too lazy to figure out how to (I've actually heard people say that), but then would go to michelin restaurants or buy fancy bags . So for them it wasn't an issue of not having money

 

[disneychrista]

I don't know why people DON'T participate, especially if your Company matches a portion of it. It's literally free money!

When I started having to look for a new job after 21 years I decided that I would contribute to any 401k plan up to the match for any new job I took. My previous employer had NO RETIREMENT at all.

It is tough for a lot of people who are struggling to make ends meet to see the benefit of contributing to retirement/401k.

 

[North of Mouse]

Sorry, but it leaps right off the page to me that on one hand you have zero problem putting forth anecdotal evidence re: those you know, yet someone else putting forth what's in their lens is dubious? Sauce for the goose ...

Say what? Because I said it was amazing? It truly is - from those I'm familiar with.
Besides, it's a mute point as the person that responded to my post (and you referenced) is not of the age the OP is or that I was speaking of in my post - when called on it, seems she may be more of a young 30 or close - I specifically said young 20's - like the OP said. By that age, it's true that a lot of people start being more financially responsible -

 

[Searc]

I think there will always be people like this. My parents had a lot more income than some of my friends’ parents (5 bedroom house vs. 3 bedroom apartments), yet some of them drove nicer cars. My girlfriend used to get so excited when her mom paid off some of the credit card because that meant a shopping spree at Orbachs. My 23 year old lives out of her car (plus stays here and with friends) to save money and pay off student loans (salary around $65,000). She goes out to eat with friends but hates the money part of it. Ds21 gave in an bought a new iPhone (his firs5 one was from sophomore in HS, he borrowed his girlfriend’s old one for a year but finally gave in). All of my kids are responsible to pay for their iPhones.

I don’t think it’s generational.

Your daughter is homeless, with a salary of $65,000?

 

[LSUmiss]

It took me awhile to participate, and part of why is that it's tough for younger people to part with money that they can use NOW. Sure, it may be smart to skip one meal out a week, or whatever you contribution might be, but it's yet another example of quality of life now vs. possibility of money later. Not to mention that a lot of my generation (mid-30s) question if we are really even going to be able to retire in the way retirement has been touted most of our lives.

I’m 40 & still struggle with this balance. I have retirement savings, but I also don’t get nuts with it. My dad was crazy about saving for retirement savings & died before he could enjoy it. He denied himself things to save & for what?! Seems so unfair .

 

[Mackenzie Click-Mickelson]

I’m 40 & still struggle with this balance. I have retirement savings, but I also don’t get nuts with it. My dad was crazy about saving for retirement savings & died before he could enjoy it. He denied himself things to save & for what?! Seems so unfair .

I feel like a lot of people try to balance it. I think sometimes money is tighter and other times it's not.

I didn't contribute to my previous company's 401K for about 2 1/2 years (I started at that company when I was 22) . In all honesty I needed the money more for living expenses. When I got to a point that I was more comfortable I played catchup. The company matched up to 5% and I was putting in 10% per paycheck (the 15th and the last of the month at that time). I knew I had wasted free money in the past but I did it because it was better financially for me.

 

[LSUmiss]

I feel like a lot of people try to balance it. I think sometimes money is tighter and other times it's not.

I didn't contribute to my previous company's 401K for about 2 1/2 years (I started at that company when I was 22) . In all honesty I needed the money more for living expenses. When I got to a point that I was more comfortable I played catchup. The company matched up to 5% and I was putting in 10% per paycheck (the 15th and the last of the month at that time). I knew I had wasted free money in the past but I did it because it was better financially for me.

I also had a friend die at 36. That kinda stuff just messes with my head.

 

[JPPT1974]

So sorry your friend died at 36. So young a age. Really sad!

 

[Mackenzie Click-Mickelson]

I also had a friend die at 36. That kinda stuff just messes with my head.

So sorry to hear that

 

[LSUmiss]

So sorry your friend died at 36. So young a age. Really sad!

Thanks & it was cancer both times so it’s not like it was a preventable disease. Would have been sad either way, but it was a shock both times b/c there was no indication anything was wrong. Both went in for mundane illnesses & found out they had stage 4 cancer.

 

[Starport Seven-Five]

I also had a friend die at 36. That kinda stuff just messes with my head.

I had a coworker die suddenly in his 40s when I was 28. That was a tough one to reconcile but it was also motivation to make sure I was in a position to retire while still healthy. We do the bucket list activities that we value (travel mainly) but live in an average size house and drive older used vehicles so we can max our 401k's.

 

[mjkacmom]

Your daughter is homeless, with a salary of $65,000?

She is! Two bedroom apartments start at $1600 a month (she’d have a roommate), so with utilities, just rent and loans are $2000+. She wants to have six months of living expenses banked. We kept her on our health insurance, she’s off our car insurance in January. She really wants to pay as much as possible towards her student loans, I think they are down to $60,000. I’m sure she is contributing the max into her 401k.

 

[ronandannette]

She is! Two bedroom apartments start at $1600 a month (she’d have a roommate), so with utilities, just rent and loans are $2000+. She wants to have six months of living expenses banked. We kept her on our health insurance, she’s off our car insurance in January. She really wants to pay as much as possible towards her student loans, I think they are down to $60,000. I’m sure she is contributing the max into her 401k.

I wish her well and that student debt many carry is certainly burdensome but I don’t think I’ve ever heard of anyone before who would prioritize saving for retirement while couch-surfing and/or living in their car. Adulting is tougher than it looks, to be sure, but putting a roof over one’s head is a pretty fundamental part of it.

 

[Moliphino]

Re: Breakfast Club

That is one of my all time fav movies. Saw it multiple times in the theatre in high school.
Now my Gen X kid talks about it and I'm like " um that's MY movie. "

Isn't Breakfast Club a Gen X movie? Or did you mean Gen Z kid?

That makes sense in your situation. I suppose I was thinking more of the people in my bubble, who wouldn't contribute or be too lazy to figure out how to (I've actually heard people say that), but then would go to michelin restaurants or buy fancy bags . So for them it wasn't an issue of not having money

It's always been a part of my onboarding paperwork at new jobs, couldn't get any easier. Plus yearly meetings to explain it.

 

[luvsJack]

We have had to gently guide dd's husband toward "needs" that you have to spend at least some money on! Rent, utilities and groceries! He is 24, dd is 21. In the time they have been together they have gone from seriously struggling to making really good money. But, during the struggling times, he seemed to think they could just not buy groceries. I believe that in the years before he and dd got together, he rented his own house but ate at his Mom's work, his Mom's house, his sister's house, a friend's house, just wherever he was when a meal was cooked, so he didn't have to buy groceries. DD had to do some serious talking to get him to understand that as a married couple they couldn't go around eating off everyone else! LOL

As young 20's, they go from saving a great deal of money to spending it all in a day. I don't say much, as I know they will figure it out but ever so often, I try to gently suggest that they not spend so much at one time and always keep some in savings. For them its mostly vacations as neither one is big on high dollar brands of anything. She does have a 401k at work so there is, at least, that. And they have compromised on the grocery buying. She has seriously learned how to budget and make her grocery dollar stretch (better than I am at it, honestly)

My oldest is 37 and his wife is 35. In the past 7 years, they have seriously made major overhauls in the way he spends and saves money. He has also has a 401k that until 7 years ago I don't think he contributed to and it was that "why save it for years from now when I need to spend it now?" mentality.

There is just a sudden moment of finance maturity that comes along at around 30 for a lot of people.

 

[mjkacmom]

I wish her well and that student debt many carry is certainly burdensome but I don’t think I’ve ever heard of anyone before who would prioritize saving for retirement while couch-surfing and/or living in their car. Adulting is tougher than it looks, to be sure, but putting a roof over one’s head is a pretty fundamental part of it.

It’s interesting, she attended a very large, liberal, diverse university, and home ownership is something that many of her peers find unattainable. So many have huge student loan debt, starter homes go for $350,000 plus, taxes are insane, it’s really overwhelming to many of them. When DH and I were her age, we both moved out of our parents home, my rent was only $650 for a 2 room studio, and we were debt free. DH received exactly the the same education at the same college for $20,000 that Dd paid over $100,000 for (that includes living expenses, both lived off campus for 2 years to save money).