I also see this student loan thing being tossed around all the time. If people don’t intend to pay them back, then don’t take out a loan. It’s really that simple.
Its not that simple. You’re using the benefit of hindsight with the knowledge you’ve gained as an adult and are applying it to the mindset of a 18 year old that is making the decision that they don’t understand the consequences of, and are being advised to do by adults they trust.
Stay out of debt.
This is generally good advice, but not always. There is useful debt, especially when you are younger, which is the prime time that young adults take on student loans.
I can’t stand banks. I loathe them. I refuse to owe a bank or anybody else for that matter any money.
That is certainly your right, but it may not be the most beneficial path for someone in your situation. Living purely on cash (as in money belonging to you not borrowed) means missing out on opportunities to those with solid transportation, education (not just college), ownership of your housing, and possibly needed medical procedures. Unless you’re starting with money, the timeline for establishing yourself and meeting your basic needs is far longer without borrowing at all.
I used to be in a bad situation like what you’re describing. I woke up one day and told myself enough is enough. I’m sick of the debt. I paid off all my debts,
I went through the same thing. However, we both went through this long after being 18 years old, which is when many would have taking out student loans. So even we didn’t have the wherewithal to avoid poor financial choices, we were just lucky enough not to have been born at a time when a 6 figure student loan for a bachelors degree isn’t uncommon.
bought a house, paid that off and now I try and save as much as I can.
That is a perfect example of a good use of debt. You took out a mortgage to buy a house, and gave the bank money in interest while you worked to pay it off. Not all debt is bad. Imagine if you’d tried to buy a house just by saving up cash.
I didn’t wait for anybody to rescue me. Nobody is gonna rescue me. The government, a bank, family. Nobody. I’m responsible for my own actions and I take accountability.
That is a good mindset, but recognize what it took in life before you arrived there. I imagine that was a long time after your 18th birthday. Further, you weren’t in as deep as a hole as many young people are today. If you were paying rent, it was a smaller fraction of your income than younger people pay today. If you had a car (even a used one), it would have cost you far less to buy then than today, and far cheaper to maintain and repair then compared to now. Most importantly, you had years of experience and probably had professional employment when you made your realization. You weren’t 2 years graduated from college without any professional employment because the 2008 Financial Crisis essentially stopped all hiring for a couple of years.
The younger generations didn’t have what you had to overcome things. So they can’t take exactly the same actions you took and expect the same positive outcome.
The only way people can change their situation for the better is to think positively and work hard towards your goals. I don’t know of any other way.
That worked for both of us, but we had the benefit of growing up (and entering the workforce) when we did. We got to establish ourselves before the rules changed.
The other difference between us in the 90s and the generations now is that when life kicked us down, there was a small effort to stand up. The consequences of failure (even with no mistakes made) can have decades long consequences to recover from. The reason I point this out is that you and I have had it better than those young today. What worked for us, rarely works for them anymore. Its important to recognize that when we try to apply our past experience to those experiencing it now. The time difference changes the rules and outcomes.
So with all that being said, has the education system failed society? They seem to teach people how to be good consumers. And that’s about it
I’m too far removed from the modern education system to be able to have a trustworthy complete opinion on it. If there are any educators reading, please weigh in, I’m interested in your answer.
However, one of the few things I don’t see taught comprehensively (and this was true of us in the 90s too) is: Critical Thinking
I had a few teachers or professors throughout my primary and secondary education that DID teach this in concert with their subject matter expertise. These men and women had a profound impact on my mindset and education I still benefit from today. I don’t know if certain lines of study have more or less of it, but the practice around exploring “why” something is instead of just “what” is in short supply in most folks I run into today.
Also, I agree, taking a loan for a home is the only debt I agree with only because real estate is a tangible asset and will always appreciate.
For your situation that may be the appropriate answer. For others if they are able bodied and desire to work, but don’t have transportation, it is worth taking on debt to buy an affordable vehicle of some kind that can get them too and from work.
If a different person is have debilitating pain from an infected tooth and can’t work, taking on debt to get the tooth pulled instead of dying of sepsis is also good debt.
Its not that simple. You’re using the benefit of hindsight with the knowledge you’ve gained as an adult and are applying it to the mindset of a 18 year old that is making the decision that they don’t understand the consequences of, and are being advised to do by adults they trust.
This is generally good advice, but not always. There is useful debt, especially when you are younger, which is the prime time that young adults take on student loans.
That is certainly your right, but it may not be the most beneficial path for someone in your situation. Living purely on cash (as in money belonging to you not borrowed) means missing out on opportunities to those with solid transportation, education (not just college), ownership of your housing, and possibly needed medical procedures. Unless you’re starting with money, the timeline for establishing yourself and meeting your basic needs is far longer without borrowing at all.
I went through the same thing. However, we both went through this long after being 18 years old, which is when many would have taking out student loans. So even we didn’t have the wherewithal to avoid poor financial choices, we were just lucky enough not to have been born at a time when a 6 figure student loan for a bachelors degree isn’t uncommon.
That is a perfect example of a good use of debt. You took out a mortgage to buy a house, and gave the bank money in interest while you worked to pay it off. Not all debt is bad. Imagine if you’d tried to buy a house just by saving up cash.
That is a good mindset, but recognize what it took in life before you arrived there. I imagine that was a long time after your 18th birthday. Further, you weren’t in as deep as a hole as many young people are today. If you were paying rent, it was a smaller fraction of your income than younger people pay today. If you had a car (even a used one), it would have cost you far less to buy then than today, and far cheaper to maintain and repair then compared to now. Most importantly, you had years of experience and probably had professional employment when you made your realization. You weren’t 2 years graduated from college without any professional employment because the 2008 Financial Crisis essentially stopped all hiring for a couple of years.
The younger generations didn’t have what you had to overcome things. So they can’t take exactly the same actions you took and expect the same positive outcome.
That worked for both of us, but we had the benefit of growing up (and entering the workforce) when we did. We got to establish ourselves before the rules changed.
The other difference between us in the 90s and the generations now is that when life kicked us down, there was a small effort to stand up. The consequences of failure (even with no mistakes made) can have decades long consequences to recover from. The reason I point this out is that you and I have had it better than those young today. What worked for us, rarely works for them anymore. Its important to recognize that when we try to apply our past experience to those experiencing it now. The time difference changes the rules and outcomes.
So with all that being said, has the education system failed society? They seem to teach people how to be good consumers. And that’s about it
Also, I agree, taking a loan for a home is the only debt I agree with only because real estate is a tangible asset and will always appreciate.
I’m too far removed from the modern education system to be able to have a trustworthy complete opinion on it. If there are any educators reading, please weigh in, I’m interested in your answer.
However, one of the few things I don’t see taught comprehensively (and this was true of us in the 90s too) is: Critical Thinking
I had a few teachers or professors throughout my primary and secondary education that DID teach this in concert with their subject matter expertise. These men and women had a profound impact on my mindset and education I still benefit from today. I don’t know if certain lines of study have more or less of it, but the practice around exploring “why” something is instead of just “what” is in short supply in most folks I run into today.
For your situation that may be the appropriate answer. For others if they are able bodied and desire to work, but don’t have transportation, it is worth taking on debt to buy an affordable vehicle of some kind that can get them too and from work.
If a different person is have debilitating pain from an infected tooth and can’t work, taking on debt to get the tooth pulled instead of dying of sepsis is also good debt.