Millennials don’t understand how to build credit, study says

[meowfurion]

Millennials don't know how to do a LOT of shit. Studies don't even need to be done to state that fact.

[Hammerfest]

Is this 1970 or is there literally any view you hold based on reality?

I bought my home in 2010 for $60K. You don't have to live in places where property is more expensive, you know.

[Symphonic]

I bought my home in 2010 for $60K. You don't have to live in places where property is more expensive, you know.

The housing market crashed. We bought in 2012 for 108k. And when we sold just a year and a half ago, we got over 50,000 equity. I don't know how anyone can save enough money to get into a house currently.

[petej0]

That's not true at all.

Can you elaborate?

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Companies have realized that people are fine paying $22/month for everything in their life, for the rest of their life, because most people will never have enough cash saved up to pay for what is required to just be a functioning member of society.

If you are carrying a balance every month on a credit card. That is not anyones fault but the user.

[Hammerfest]

The housing market crashed. We bought in 2012 for 108k. And when we sold just a year and a half ago, we got over 50,000 equity. I don't know how anyone can save enough money to get into a house currently.

By shopping around.

[Fojos]

Wait so...

People who are young, have poorer understanding of a subject that is poorly communicated to us all, than their older peers who've had years of experience to figure it out??


I'm SHOCKED

Because it's so hard to understand that high reported income, no credit used and otherwise stable income is what leads to higher rating am I right.

How stupid do you have to be to figure that having debt would increase your rating?

[ghotihook]

By shopping around.

No amount of shopping around with get you a livable house for 60K with the current market. You got lucky because the crash in 2008. Houses were going for half value. Trust me, I know this, I got a brand new 2500sq foot house for 160K in 2010. The exact same house sells for 250K right now.

[Fojos]

How about people don't spend money they won't have for another 30 years?

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In Hungary you can get a proper sized, renovated flat for 60K. And we earn a lot less than the west. You don not need a house with a big ass garden. It is a nice dream and you should open a savings account to achieve it eventually. You do not need to move to a house at 20.

Exactly, you earn a lot less. Your 60k flat will instead go for 250k (or more) in scandinavia.

A one room apartment (25 square meters), about one hour from cities, will in almost all cases cost more than 170k USD in Sweden.

People who look for this are young and realistically have a disposable yearly income of 26800 USD.

So assuming they starve and somehow manage to get to work with 0 costs, it takes 6.3 years. Nope, sorry, we forgot the increasing property prices and now this apartment will cost 50%-100% more.

As long as property prices increase as much as they do now, you can never save enough cash to buy one (assuming a normal salary).



Ths is why the situation today is insane. People take a loan for a house, expecting the value to keep increasing forever, and later use the money they got this way to take larger loans for a more expensive house. Right now saving will never beat this. It really needs to be regulated.

[Hammerfest]

No amount of shopping around with get you a livable house for 60K with the current market.

The home right next to me was purchased last year for $65K. You don't know what you're talking about.

[Fojos]

The home right next to me was purchased last year for $65K. You don't know what you're talking about.

Detroit or Florida?

[nycnyc88]

Not just the use of credit. As my parents always said (and i say to my kids) - if you cant afford to pay for it in cash, today, you cant afford it! Time to save up!

Apparently not just that hehe

As wall street analysts celebrate the coming of age of the millennial generation, a group of young people who were supposed to lead another revolutionary wave of consumerism if only they could work long enough to escape their parents' basement, retailers like Home Depot are panicked about selling into what will soon be America's largest demographic...but not for the reasons you might think.

While avocado resellers like Whole Foods only have to worry about creating a catchy advertising campaign to attract millennials, Home Depot is in full-on panic mode after realizing that an entire generation of Americans have absolutely no clue how to use their products. As the Wall Street Journal points out, the company has been forced to spend millions to create video tutorials and host in-store classes on how to do everything from using a tape measure to mopping a floor and hammering a nail.

Home Depot's VP of marketing admits she was originally hesitant because she thought some of their videos might be a bit too "condescending" but she quickly learned they were very necessary for our pampered millennials.

In June the company introduced a series of online workshops, including videos on how to use a tape measure and how to hide cords, that were so basic some executives worried they were condescending. “You have to start somewhere,” Mr. Decker says.



Lisa DeStefano, Home Depot vice president of marketing, initially hesitated looking over the list of proposed video lessons, chosen based on high-frequency online search queries. “Were we selling people short? Were these just too obvious?” she says she asked her team. On the tape-measure tutorial, “I said ‘come on, how many things can you say about it?’ ” Ms. DeStefano says.

And just in case you think we're joking and/or exaggerating, here is Home Depot's tape measure tutorial in all its glory:

https://www.youtube.com/watch?time_c...&v=M73r32vK7C4

[petej0]

The home right next to me was purchased last year for $65K. You don't know what you're talking about.

Depends on the cost of living in your area. I can tell you in the North East close to cities, Thats rare in areas you would want to raise a family in with good schools. Without having to put thousands in repairs.

[Deleted]

Exactly, you earn a lot less. Your 60k flat will instead go for 250k (or more) in scandinavia.

A one room apartment (25 square meters), about one hour from cities, will in almost all cases cost more than 170k USD in Sweden.

And they earn 4 times what I do. By the way I could sell my 60k flat bought 3 years ago for around 75k.

I get that it's not easy. But it's easier if people look around and don't buy the first 4 bedroom house they find

[Tinykong]

If you are carrying a balance every month on a credit card. That is not anyones fault but the user.

Everything is going the way of the monthly payment. As more companies realize people are willing to pay $22/month for pretty much everything in their life, ownership will go away and everything will be a perpetual lease of shitty stuff not designed to last longer than the payment period.

People can't get ahead because wages are stagnant, prices are continuously going up, and it costs more and more everyday just to be alive.

[Hammerfest]

Depends on the cost of living in your area.

Exactly. If it's too expensive to buy a home in an area you already live, move. It really is that simple.

[petej0]

Everything is going the way of the monthly payment. As more companies realize people are willing to pay $22/month for pretty much everything in their life, ownership will go away and everything will be a perpetual lease of shitty stuff not designed to last longer than the payment period.

People can't get ahead because wages are stagnant, prices are continuously going up, and it costs more and more everyday just to be alive.

Like what? I dont have anything that is monthly payment that never was a monthly payment.

[Fojos]

And they earn 4 times what I do. By the way I could sell my 60k flat bought 3 years ago for around 75k.

I get that it's not easy. But it's easier if people look around and don't buy the first 4 bedroom house they find

Like I said, the smallest apartments for 170k. And 60k to 75k is very slow in three years compared to here (don't forget all prices rise, not just yours).

If you want four bedrooms you can expect to pay at least 750k. Unless you want to live in a forest 400 km from any city. Then you "just" pay 130k.

It's not about being hard or not. Here it's literally impossible to save for an apartment near any city because the value increases more than you can save per year (without a single expense, like transport, food or current rent).

Exactly. If it's too expensive to buy a home in an area you already live, move. It really is that simple.

Because the people who can't afford it in cities can move however they want.

[Tinykong]

Like what? I dont have anything that is monthly payment that never was a monthly payment.

Cell phones, you used to be able to sign a 2 year contract, and the carrier gave you a subsidized phone price or free phone, now they charge you retail price for the phone spread out over 24 months, plus you have to sign a contract for the service.

Cable TV service equipment. You used to be able to provide your own modem, but now Comcast requires a specific modem if you want their best internet package, which you have to rent from them for ~$20 a month. Of course you can downgrade to the slower internet and provide your own equipment, which is, surprisingly, $20 a month more expensive.

Cars are typically sold as a monthly payment now, and the total purchase price is obfuscated deliberately. The last time I wanted to buy a car, I couldn't get the actual sales price until the finance department had drawn up all the paperwork. They adamantly refused to tell me what it was, insisting that the payment was what I wanted and not to worry about the total price because it was "complex."

If you want to buy quality appliances, home furnishings or practically anything else, it's going to be expensive and require yet another debt obligation. Of course, you can buy a new particle board dresser every 2 years for $100, or you can buy a solid wood one for $1000 that will last you a lifetime.

That's how poor people are kept poor, they're forced to keep buying the same things over and over again because they can't afford to buy a quality one, and the shitty one is designed to fall apart 10 times faster.

[nycnyc88]

Cell phones, you used to be able to sign a 2 year contract, and the carrier gave you a subsidized phone price or free phone, now they charge you retail price for the phone spread out over 24 months, plus you have to sign a contract for the service.

Cable TV service equipment. You used to be able to provide your own modem, but now Comcast requires a specific modem if you want their best internet package, which you have to rent from them for ~$20 a month. Of course you can downgrade to the slower internet and provide your own equipment, which is, surprisingly, $20 a month more expensive.

Cars are typically sold as a monthly payment now, and the total purchase price is obfuscated deliberately. The last time I wanted to buy a car, I couldn't get the actual sales price until the finance department had drawn up all the paperwork. They adamantly refused to tell me what it was, insisting that the payment was what I wanted and not to worry about the total price because it was "complex."

If you want to buy quality appliances, home furnishings or practically anything else, it's going to be expensive and require yet another debt obligation. Of course, you can buy a new particle board dresser every 2 years for $100, or you can buy a solid wood one for $1000 that will last you a lifetime.

That's how poor people are kept poor, they're forced to keep buying the same things over and over again because they can't afford to buy a quality one, and the shitty one is designed to fall apart 10 times faster.

Its basically feudalism, adjusted for the use of technology.

https://en.wikipedia.org/wiki/Rent-seeking

Cloud services of today are a fantastic example - almost every tech company making software wants you to rent (slowly phasing out buying altogether, Adobe Creative Suite, Amazon/Google/Microsoft Cloud Services, etc - they make it very easy to get you and your business into the cloud, but almost impossible to go back, essentially guaranteeing eternal rent for themselves)

A great article on Rent-Seeking and New Feudalism that is the current system

https://libertyblitzkrieg.com/2017/0...g-abomination/

[petej0]

Cell phones, you used to be able to sign a 2 year contract, and the carrier gave you a subsidized phone price or free phone, now they charge you retail price for the phone spread out over 24 months, plus you have to sign a contract for the service.

It was subsidized because they made more off the plan. Now Phones are more expensive and plans are cheaper.

Prepaid Phone plan. I buy my own phone and pay $45 a month for unlimited Phone, text, and 6gb a data.

Cable TV service equipment. You used to be able to provide your own modem, but now Comcast requires a specific modem if you want their best internet package, which you have to rent from them for ~$20 a month. Of course you can downgrade to the slower internet and provide your own equipment, which is, surprisingly, $20 a month more expensive.

I am not familiar with Comcast, My provider doesnt charge. What difference does it make if it is included in the price or detailed out as a monthly charge?

Cars are typically sold as a monthly payment now, and the total purchase price is obfuscated deliberately. The last time I wanted to buy a car, I couldn't get the actual sales price until the finance department had drawn up all the paperwork. They adamantly refused to tell me what it was, insisting that the payment was what I wanted and not to worry about the total price because it was "complex."

Um....wtf? Where do you shop. I have never ever experienced this. When I walk the car lot the price is clearly displayed in the window. The only issue is negotiating that price.

If you want to buy quality appliances, home furnishings or practically anything else, it's going to be expensive and require yet another debt obligation. Of course, you can buy a new particle board dresser every 2 years for $100, or you can buy a solid wood one for $1000 that will last you a lifetime.

It has always been like this. The fact that you can now finance it instead of getting a loan from a bank is just a minor change.

That's how poor people are kept poor, they're forced to keep buying the same things over and over again because they can't afford to buy a quality one, and the shitty one is designed to fall apart 10 times faster.

Poor people are poor because they dont take care of the stuff and make bad decisions with their money. I still have the same sweatshirt from 96. I know because I got it when I was deployed to Bosnia and it says Operation Joint Endeavor on it. I have a particle board dresser from Ikea that has lasted me 10 years. Shit breaks faster when people mistreat it.

When you mentioned "monthly payments" I think I misunderstood, I thought you meant like we now have monthly payments for new things. These payments always existed just in a different form.