Anya Kamenetz is the 25 year old author of Generation Debt, a new book that discusses the financial problems of young Americans. A former columnist for the Village Voice, Kamenetz critiques her generation for having too much debt and little control over their spending. I haven’t had a chance to read the book yet, but today’s Salon.com interview with Kamenetz was very interesting (subscription or free day pass required):
"These days, when you are 21, you can get a credit card and you can use
it to fly to Miami on spring break. People do that because they see
their friends doing it and that is the normal thing to do, but it’s a
mistake. At the same time, these people are also going home and eating
Ramen noodles. It’s schizophrenic. For instance, everyone has cable TV
now. Even very poor people have cable TV. And there is this whole
shadow credit economy where no matter how badly off you are, you can
buy a big-screen TV. It’s messed up."
Kamenetz also discusses credit cards on campus, mandatory financial education, the job market and student loans in her interview with Salon. If you are interested in reading more about Kamenetz you can visit her blog for more information. It is also interesting to read the Amazon reviews of her controversial book.
Do you agree that this latest generation has more financial problems than others? What do you think needs to be done? What were your experienced with money in your 20′s? Share your feedback in the comment section below.
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Just read through bits of the reviews and synopsis of the book. I agree with some of what she says, but not all. Still, I think it’s an issue that needs to be addressed and dealt with. Dave Ramsey has similar views in that our generation, as well as the generation after, is marketed heavily by credit card companies and lending insitutions. I think it was something like 6 billion offers are sent to people’s mail boxes every year, and that number is rising. As a result, the number of consumers with thousands of dollars in debt, declaring bankruptcy, and saving little to no money, is rising.
“Do you agree that this latest generation has more financial problems than others?”
Yes, I do. Credit is marketed heavily in today’s culture. Multiple factors feed into this: 1) the “need” for new cars, because Americans love their cars, 2) the “need” for student loans for continued education, 3) the “need” for a house when you get married or graduate from college, 4) the “need” for a new wardrobe when you get that first job, 5) the “need” to go out to eat or play with friends, and 6) the “need” to take a vacation every year. These so-called needs have been fed to these kids who haven’t been taught in school or at home how to manage their money. I can tell you that my kids will not have these issues. But, for the rest of them, I feel for them.
“What do you think needs to be done?”
I think kids need to learn at an early age what is to manage money they have so they don’t depend on Visa or Sallie Mae or Fannie Mae to live life. Ironicall, when elementary age kids are taught to save their allowance to buy what they want, which is great. Then, as they get older, they are taught that it is responsible a nd “grown-up” to have a credit card, and, in essence, use other people’s money to get what you want now. How twisted is that?
“What were your experiences with money in your 20s?”
Well, I was like most 20 year olds today, I graduated from college with $10k in student loan debt, a $350 car payment, and a growing credit card debt. I felt like a failure and that I was not living how I wanted. The pull of the culture was and still is, instant gratification, and I fell for it 100%.
Great feedback! Thank you for sharing your story. My situation after college was very different – I managed to make it through university with no credit cards and no loans. When I graduated, I was found a good job and built my credit on a solid foundation. Maybe my story is unique, maybe not.
“Do you agree that this latest generation has more financial problems than others?”
I definitely agree! In fact, I am a prime example. I am 20 years old and got into debt up to my ears when I was 18! Luckily I had some help in getting out of debt before it got progressivly worse; however, my experience goes to prove that our generation is worse off financially than any others.