Nice Parents!!

[MagneticA]

I don't see what the big problem is with younger people driving nice cars. I'm 18 and bought my 2015 gt premium myself. I took out my own loan and everything is in my name, just because that kid is young doesn't mean his parents bought it for him. He might just have his stuff together.

It's all about perspective. When a person is in their adolescence it's difficult to understand how your current choices affect your future life. That's why adages like "hindsight is 20-20" and "I wish I knew what I know now when I was younger" are so familiar.

Taking out a $30+ K loan at age 18 isn't exactly buying a car yourself. Had you bought it yourself there'd be no loan (not that taking out a loans is bad-you just don't want to be saddled with something your budget can't handle). Living with parents, young people get a false sense of "living within their means". When parents allow/encourage/assist in large purchases for their children (however well intended and "deserved" because of good grades, responsible, what-have-you) the lesson that isn't learned is how to budget income and live comfortably within your means. Unfortunately this isn't taught at school either, so it is up to parents to help their kids navigate smart financial choices.

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[mkenny28]

It's all about perspective. When a person is in their adolescence it's difficult to understand how your current choices affect your future life. That's why adages like "hindsight is 20-20" and "I wish I knew what I know now when I was younger" are so familiar.

Taking out a $30+ K loan at age 18 isn't exactly buying a car yourself. Had you bought it yourself there'd be no loan (not that taking out a loans is bad-you just don't want to be saddled with something your budget can't handle). Living with parents, young people get a false sense of "living within their means". When parents allow/encourage/assist in large purchases for their children (however well intended and "deserved" because of good grades, responsible, what-have-you) the lesson that isn't learned is how to budget income and live comfortably within your means. Unfortunately this isn't taught at school either, so it is up to parents to help their kids navigate smart financial choices.

I hear what you are saying but I only agree to a point. A large purchase with guidance can be an exceptional learning experience for a young person. It was for me at least. It actually taught me how to budget and a great lesson about living within or below my means throughout my 20s.

 

[stoli]

Being 18 and making payments on a $40k car while Mom and Dad pay your insurance, room and board, medical, etc, etc, does not teach one to live within their means. It teaches them to live off someone else while driving a $40k car.

 

[Koncealed]

Wasn't asking for anyone's advice on whether I made a smart choice or not. I can afford my car just fine, while saving a larger amount at the same time.

 

[MagneticA]

Wasn't asking for anyone's advice on whether I made a smart choice or not. I can afford my car just fine, while saving a larger amount at the same time.

I don't think any of it is personal towards any one person. People are just interested in the generalizations of the topic. There are plenty of people who are exceptions to the rule, so don't sweat the comments. You got what you got so enjoy the hell out of it.

 

[mkenny28]

Being 18 and making payments on a $40k car while Mom and Dad pay your insurance, room and board, medical, etc, etc, does not teach one to live within their means. It teaches them to live off someone else while driving a $40k car.

Not by itself, no. But that is where parenting comes in. My parents gradually took things away and we had serious conversations about finances, etc. They taught me how to manage my money and to understand the commitment that borrowing money actually is.

 

[Robinson02]

Being 18 and making payments on a $40k car while Mom and Dad pay your insurance, room and board, medical, etc, etc, does not teach one to live within their means. It teaches them to live off someone else while driving a $40k car.

you seem to be the black sheep here. I was the same way... as long as i lived under my parents roof (and up until my sophomore year of college), they paid for everything that was a necessity. Anything else I paid for....ie. Mustang, gas, spending money, etc.

 

[stoli]

you seem to be the black sheep here. I was the same way... as long as i lived under my parents roof (and up until my sophomore year of college), they paid for everything that was a necessity. Anything else I paid for....ie. Mustang, gas, spending money, etc.

At 18 I was in college - they paid tuition and a campus food card. Since I chose to live off campus my rent and any and all other expenses were on me.

 

[Robinson02]

At 18 I was in college - they paid tuition and a campus food card. Since I chose to live off campus my rent and any and all other expenses were on me.

I agree, that's the way it should be. I moved out my sophomore year. Rent, utilities, etc. were all on me then.

 

[alimustafa23]

I feel like moving out at 18 is also a cultural thing here in the US than an actual necessity. Exception obviously, is the school being too far distance wise, for some people. Back in Asia or Middle East, you are not leaving your parents house at 18 (They'll either slap you or they'll literally CRY if you leave). At least not until you finish school, mature up and find a real job. Some leave the house after they get married, and some never leave. But, they take over all the expenses and let the parents relax in most cases.

I believe 18 is still a very tender age. Yes going out on your own can teach you a lot of good things but there is also a good chance you could still get into the wrong things because at 18 one is not fully mature yet. That is just my opinion in general. But different things work out differently for different people. So it is interesting reading posts/coming across different minds

 

[mizer67]

Inter-generational living is much more common outside of the US and not just in the east. I have European friends whos families were the same way.

My eldest friend lived with three generations under one roof and only moved out after he'd gotten married and built two houses (by himself) and started a business. Two houses because the first one he built he received an offer for over double his costs before he was able to finish, so he sold it and built another.

He's a very wealthy man today because of decisions like those.

 

[Keyser_Soze]

This is what I've noticed a lot of and this is also where I sometimes think I went wrong with the 4 year instead of the trade school. Then I remember the other opportunities I'm open to with my career choice.

No, you didn't. Trade schools offer very high starting salary in exchange for a lower ceiling - a (good) STEM degree might start you lower, but your ceiling outside of a Fortune 500 company is as high as you make it. Not that trade-school guys can't start their own businesses or that STEM degrees never get caught in dead-end jobs, I'm simply speaking in generalities. Delayed gratification still means something.

 

[Keyser_Soze]

Actually there are (used to be) many nice homes available for 30 Grand, cash. Welcome to the world of foreclosures. The homes usually need a little fixing up, and if you know what you are doing, a 30K house can be a 100K house very quickly. The trick is you must have cash, no loans! Oh, an you have to live somewhere else besides San Francisco. You all pay $400 sqft for homes I wouldn't buy. Yes, it is location, but good locations near you start around $900 sqft. In Florida, $50 sqft will get you a really nice home. What he did makes sense to me, although it is a difficult job being a landlord.

30k for 'nice' homes that need 'a little' fixing up, and the only requirement is not in SF? The amount of exaggeration in this thread is exasperating, and probably serves to misinform future slum lords. Link one of these properties and I'll eat crow.

 

[Keyser_Soze]

It has also been in my experience ( 2nd year mechanical engineering major) it depends on the time you have. I have thankfully been able to pull off that part time job at an actual engineering firm. My case is a special case though. I got very lucky being able to get this job and have bosses that understand and accept my schedule for college. Being a mechanical engineering major though doesn't leave much of any free time outside of class and homework for a job. Especially when you have to maintain a 3.0 GPA for the scholarship you have...

> 3.0 GPA while working and on a scholarship (much less debt) will pay an F load of rewards 5 years from now. Keep grinding :eyebulge:. I'm an EE but had jobs over internships (needed the money, and not many internships floating around 07-09), and even then paying for school landed me in high-5 figure debt. Counting down the months until debt payments are cut in half to pay for a GTPP :doh:

 

[Keyser_Soze]

house subject:
I dont know anything about that lol -- but I do want to buy a house prolly next year. any suggestions?

Sure, although I went a radically different path and bought the house first while driving a POS. < 20% down payments result in PMI (money going nowhere) until 20% equity. Veterans don't have to deal with this. Don't buy unless you plan on living there at least 5 years, take advantage of interest rates now and don't even think about it if your credit score is under 750. The cheapest quarter of homes in the nicer neighborhood build equity better than the priciest quarter of homes in the less nice neighborhood. Plan for your taxes to go up, and buy in a growing area. Working great for me outside of the car situation lol. At least I get to wait until the best exhaust is established (took the 11-14 guys awhile to figure out S-Types / GT500 resonator deletes were the best balance)

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