'Debt is good for young people's self esteem'

[AndreaGail]

http://www.thisismoney.co.uk/money/news/article-1726252/Debt-is-good-for-young-peoples-self-esteem.html



Young people in debt have higher self-esteem and feel like they are more in control of their lives, a US report has claimed.
Student debt: Study finds young people feel good about their debts
Researchers at Ohio State University in the US found that young adults aged 18 to 27 with more credit card and student loan debt tend to have more confidence and generally feel more positive.
Instead of being stressed by the money they owe, most youngsters said they felt empowered by their credit card and educational debts, the controversial report revealed.
Do you agree with the report? Does debt really boost self esteem? Tell us your views in reader comments
This effect is strongest among poorer students. Those with the lowest 25% of total family income of those surveyed were found to get the biggest boost from racking up debt.
Those in the middle class didn't see any impact of debt on their self-esteem, but they did record the positive effects of shopping with a credit card.
Young people from more affluent families, who tend to have the most resources and options available to them, receive no benefits at all from holding debt.
The study also examined the effects of different types of debt.
It found student loans have positive effects for young people, as it enables them to feel in control of their own goals.
The twenty-somethings surveyed also said they get a confidence kick from building up credit card debt. The more debt they held on their credit cards, the bigger the positive impact on their self-esteem and sense of mastery.
Only the oldest of those studied – those aged 28 to 34 – began showing signs of stress about the money they owned.
One of the authors, Rachel Dwyer, said: 'They may feel good about their debt only because it allows them to buy the things they want without having to delay gratification.'
Dwyer warned of the dangers of the 'buy now, pay later' attitude of the younger respondents. She added: 'Debt may make young people feel better about themselves in the short-term, but that doesn't mean it won't have negative consequences in the long term.
'We found that the positive effects may well wear off over time, but they still have to pay the bills. The question is whether they will be able to.'


Read more: http://www.thisismoney.co.uk/money/news/article-1726252/Debt-is-good-for-young-peoples-self-esteem.html#ixzz1QidQfGyS

[BabushkaLady]

"She added: 'Debt may make young people feel better about themselves in the short-term, but that doesn't mean it won't have negative consequences in the long term.
'We found that the positive effects may well wear off over time, but they still have to pay the bills. The question is whether they will be able to.'"

She added: 'Sex may make young people feel better about themselves in the short-term, but that doesn't mean it won't have negative consequences in the long term.
'We found that the positive effects may well wear off over time, but they still have to raise the babies. The question is whether they will be able to.'

They'll change last week's study from Sex to Money and back to Sex next week. :o

[LuckyStrike]

"Young people in debt have higher self-esteem and feel like they are more in control of their lives"

Sincerely,

Every jew who ever lived.

[vacuum]

I can see how this study could be true. Getting credit card offers, getting extended large lines of credit, and carrying a balance can in a way make someone feel pretty self-important. It seems that perhaps some young people's parents don't put as much trust in them as a credit card company does. It makes them feel like they are validated as being mature, and making the debt payments makes them feel responsible - perhaps they don't think about how much the payments are because they figure its "normal".

It won't be until they've run the rat race for a number of years that they realize that, while the lenders did seemingly give them the benefit of the doubt and gave them responsibility, ultimately they are just draining their life away by forcing them to work all the time to keep up. But at that point they may not be considered "young people" anymore so they don't count in this survey.

[Canadian-guerilla]

whatever happened to all the parents/grandparents growing up during the depression

that taught their kids to PAY IN CASH


2 lessons from my mom who was raised in a small fishing town in Nova Scotia

PAY IN CASH AND ALWAYS GET A RECEIPT

thanks mom, R.I.P.

[Buddha]

I was going to say about the same thing as Vacuum. Most young people in debt have higher self esteem because they are self-aggrandizing ass hats. The inflated sense of self runs rampant through out our society. Young person gets credit card, young person feels as though they have more money, which in turn strokes the ego. Now they can do what they have always wanted and act like their favorite satanic star. They can get that 40in 1080p HD flat panel, that stereo system for the car, the $1200 laptop they wanted etc. Now they are all of a sudden "successful". Being young myself, I've seen this numerous times. My "peers" boasting to me about how high their credit limit is or about that new exhaust the are getting for the car on credit etc.

My face when my CC balance is $200 right now and that's the only debt I have:
http://img685.imageshack.us/img685/6721/1308281538802.jpg

[Twisted Titan]

I swear to the high one I thought this was a article from the onion.......I am truly stunned into silence

[madfranks]

I have a friend who for the past 5-6 years has been living the high life off of excess student loan money. He's been maxing out the amount he can borrow, pays tuition, then takes the refund to enjoy life during the semester. Let's see, a new drum set, a motorcycle, video games and a big HD flatscreen TV. He goes out a lot and I'd say his self esteem is boosted by all the excess. The problem is he isn't considering how hard it will be to pay all that back once he's working the grind every day for the next 30 years. Self esteem be damned, it's a trap and a good portion of my generation is falling into it.

[Dogman]

I have a friend who for the past 5-6 years has been living the high life off of excess student loan money. He's been maxing out the amount he can borrow, pays tuition, then takes the refund to enjoy life during the semester. Let's see, a new drum set, a motorcycle, video games and a big HD flatscreen TV. He goes out a lot and I'd say his self esteem is boosted by all the excess. The problem is he isn't considering how hard it will be to pay all that back once he's working the grind every day for the next 30 years. Self esteem be damned, it's a trap and a good portion of my generation is falling into it.

http://www.the-money-cafe.com/Fools-and-Their-Money.html

FOOLS AND THEIR MONEY




http://www.the-money-cafe.com/images/Man-and-Barrel.jpg



A fool and his money are my best friends (http://www.the-friendship-cafe.com/Best-Friends.html).
— Author Unknown
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Lotteries allow fools and money to get together. In 2008 Scots Lottery millionaire John McGuiness had run out of cash just 12 years after winning £10 million (over $20 miilion).
Inheritances are another way that fools and money get together and soon part.
Adopting Social Security as their only retirement plan allow fools and their money to part easily.
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We all can be fools with our money at times. The key is to minimize how often we fall into the idiot trap that is so prevelant today and instead adopt money saving tips (http://www.the-money-cafe.com/Money-Saving-Tips.html) and principles of debt management (http://www.the-money-cafe.com/Debt-Management.html).



The average man has more money than sense; the trouble is that he doesn't know it.
— Author Unknown
Check out: Lotteries: The Retirement Plan for Fools with a Little Bit of Money (http://www.retirement-cafe.com/Winning-a-Lottery-The-Retirement-Plan-with-the-Most-Bugs.html).
From Seth Godin:


Why do many people struggling financially end up using an expensive check cashing service when the bank right next door will let them have a checking account for free?
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Prove to me that you're no fool.
Walk across my swimming pool.
— Tim Rice

Quotes about Fools and How They Manage Their Money


#1 Quote about Fools and Their Money
There are more fools among buyers than among sellers.
— French proverb

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He that has not bread to spare should not keep a dog.
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Misers amass wealth for those who wish them dead.
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More Money Does Not Buy Better Wine
In restaurants, many people order the second-least-expensive wine on the list, reports Money magazine. They don't want to spend a lot, but they don't want the absolute worst pick. "The problem with using price as a sign of quality is that the cost of a bottle is often influenced by factors that have nothing to do with whether you'll actually enjoy drinking it. For one thing, people buy expensive wines as a way of demonstrating sophistication and wealth."