I am absolutely gobsmacked by the lack of financial education in our schooling system. It is ridiculous that someone can enter the workforce without first understanding basic cashflow principles and how to successfully live and grow within one's means.
This fellow started a thread on OzBargain a few days ago asking for advice on moving out. Let me share his braindump:
Reading this makes me cringe so much I am going to resort to point form
and the kicker in one of his comments:
Now I understand that every adult will become financially responsible at a different stage in their life. And this fellow may well do an about-turn and take full control of his finances. But at the very least, schools need to start switching kids' brains on to some key principles of resource management, because while the enjoyment from small ticket purchases is part of a healthy lifestyle, the entitlement mentality that inescapably comes with it brings about much bigger, much longer-term problems in the form of misunderstood debt and a lifestyle well beyond one's means
This fellow started a thread on OzBargain a few days ago asking for advice on moving out. Let me share his braindump:
I'm a big boy now and getting sick of mooching off my parents and putting up with their embarrassing antics and am keen to move out of home. But I'm really not sure where to start? I need to do some research obviously, at this stage my plan is to get a rental for now, maybe share with some mates.
Obviously buying a house makes more sense financially, not wasting money on rent, but I'm not sure I'm in a position financially to be able to, I have about 10k in the bank, earning 50k per year. Saving maybe 1.5-2k per month. But I got a 3 week holiday to Japan in February, and talks of NZ in June so there goes half my savings :/ And my car is dying a slow painful death, so will need another one soon, my bike needs $1000 work, and I want to get my wisdom teeth out, all of which costs money Do they still do no deposit home loans? What's the catch with these? I figure now is the best time to have a large mortgage with interest rates so low, as long as I can keep up when interest rates increase and my payments go up..
I've had a quick look at some rental prices and damn! It's not pretty And I would like a nice clean modern spacious place in a good location as well so that isn't going to help keep the cost down :/ I'm fussy
Reading this makes me cringe so much I am going to resort to point form
- buying makes more sense than renting which is just wasting money? WRONG, both are valid strategies
- 2 international holidays taking up half his savings
- impending car purchase
- impending bike repair bills (does he really need a car AND a bike?)
- he wants a no-deposit loan while interest rates are so low. holy buttf&#k.
- on top of that he wants a "nice clean modern spacious place in a good location"! at least he admits that he's fussy
and the kicker in one of his comments:
I reckon if I tried I could sustain 2k savings per month, but that would mean be leading a boring life which I don't wanna do
Now I understand that every adult will become financially responsible at a different stage in their life. And this fellow may well do an about-turn and take full control of his finances. But at the very least, schools need to start switching kids' brains on to some key principles of resource management, because while the enjoyment from small ticket purchases is part of a healthy lifestyle, the entitlement mentality that inescapably comes with it brings about much bigger, much longer-term problems in the form of misunderstood debt and a lifestyle well beyond one's means