Millennials Who Are Thriving Financially Have One Thing in Common

[ksen]

http://www.theatlantic.com/business/archive/2015/07/millennials-with-rich-parents/398501/

Millions of America’s young people are really struggling financially. Around 30 percent are living with their parents, and many others are coping with stagnant wages, underemployment, and sky-high rent.

And then there are those who are doing just great—owning a house, buying a car, and consistently putting money away for retirement.

These, however, are not your run-of-the-mill Millennials. Nope. These Millennials have something very special: rich parents.

I guessed the answer before reading the article. Yay me!

I'm legit happy for these kids that are able to enjoy this kind of success early on in their lives. I just wish, as a society, we would help people without rich parents have the same opportunity to graduate without crushing student debt.

 

[Loren Pechtel]

http://www.theatlantic.com/business/archive/2015/07/millennials-with-rich-parents/398501/

Millions of America’s young people are really struggling financially. Around 30 percent are living with their parents, and many others are coping with stagnant wages, underemployment, and sky-high rent.

And then there are those who are doing just great—owning a house, buying a car, and consistently putting money away for retirement.

These, however, are not your run-of-the-mill Millennials. Nope. These Millennials have something very special: rich parents.

I guessed the answer before reading the article. Yay me!

I'm legit happy for these kids that are able to enjoy this kind of success early on in their lives. I just wish, as a society, we would help people without rich parents have the same opportunity to graduate without crushing student debt.

Of course rich millennials inherited it--there hasn't been enough time for them to have gotten rich the old fashioned way. You're not proving anything of importance.

 

[krypton iodine sulfur]

Of course rich millennials inherited it--there hasn't been enough time for them to have gotten rich the old fashioned way. You're not proving anything of importance.

The article wasn't about getting rich. It's more about the path toward financial stability for millennials being more protracted due to heavier debt burdens and certain increased costs unless they happened to have financial support from their parents along the way. There is a disparity between those with such support and those without it, and that may, as a general trend, remain a lifelong issue. While I may not have perfectly captured the essence of the article, I think it's a bit more on target than millennials getting rich under their own steam now that the oldest of us have entered our early thirties.

 

[TSwizzle]

I guessed the answer just from who posted. Yeah for me

 

[Kharakov]

People who are successful are either connected to the underworld (hidden power structure) or overworld (visible power structure). All of them have backers on one side, or both.

I am spectacularly unsuccessful at everything other than philosophy and drug use. I can't even get a minimum wage job, although to tell you the truth, I might go postal. I'd like to work for the postal service. Or be a drug dealer.

 

[krypton iodine sulfur]

I am spectacularly unsuccessful at everything other than philosophy and drug use.

Drug use doesn't seem to be the biggest impediment to being a well-paid, powerful executive, but philosophy is really going to get in your way. Well, unless the philosophy you're good at is really just a string of catch phrases and specious advice about the secrets to success, work life balance, and blah blah blah.

 

[Kharakov]

Drug use doesn't seem to be the biggest impediment to being a well-paid, powerful executive, but philosophy is really going to get in your way.

Philosophy != scruples.

 

[krypton iodine sulfur]

Drug use doesn't seem to be the biggest impediment to being a well-paid, powerful executive, but philosophy is really going to get in your way.

Philosophy != scruples.

That's not really the issue.

 

[Kharakov]

Philosophy != scruples.

That's not really the issue.

Neither is a dining on sulfur in a crypt on Io, but I mentioned it, didn't I?

 

[TV and credit cards]

People who are successful are either connected to the underworld (hidden power structure) or overworld (visible power structure). All of them have backers on one side, or both.

I am spectacularly unsuccessful at everything other than philosophy and drug use. I can't even get a minimum wage job, although to tell you the truth, I might go postal. I'd like to work for the postal service. Or And be a drug dealer.

Do both at the same time and be spectacularly successful. Or go to prison.

To the point: Money gifted does not have the same value as money earned. Oftentimes, parents do their children no favor by giving them a full and free ride. Make sure they have suffered and learned their financial lesson first.
And I beat the free education drum again. This should be on the gubbermint.

 

[Togo]

I am spectacularly unsuccessful at everything other than philosophy and drug use. I can't even get a minimum wage job, although to tell you the truth, I might go postal. I'd like to work for the postal service. Or be a drug dealer.

Have you thought about being a financial services consultant? It basically involves reading a lot of very badly written rules, so philosophy is good practice. The hardest bit about it is learning to use Excel, and wearing a tie every day. And keeping a straight face. Computer skills help. There may be some looking stuff up in Google. The ability to add is strictly optional.

 

[Nice Squirrel]

I am spectacularly unsuccessful at everything other than philosophy and drug use. I can't even get a minimum wage job, although to tell you the truth, I might go postal. I'd like to work for the postal service. Or be a drug dealer.

Somebody posted this on Facebook:

Wanted: Qualified people for entry-level job.

Must have Nobel Prizes in 2 different areas.

 

[ronburgundy]

http://www.theatlantic.com/business/archive/2015/07/millennials-with-rich-parents/398501/



I guessed the answer before reading the article. Yay me!

I'm legit happy for these kids that are able to enjoy this kind of success early on in their lives. I just wish, as a society, we would help people without rich parents have the same opportunity to graduate without crushing student debt.

Of course rich millennials inherited it--there hasn't been enough time for them to have gotten rich the old fashioned way. You're not proving anything of importance.

That unearned wealth not only made the rich quick, it handed them education and other opportunities that will transform that wealth into a lifelong financial advantage that very few people than didn't get that unearned wealth will ever catch up to no matter how smart or hard working. 40 years from now some of them will have many millions because they were handed $ to invest and got lucky in what their broker invested in. Then free-market faithers will falsely declare them "self-made" millionaires.

 

[ksen]

Donald Trump is a selfmade man as well. We should all follow his example of pulling himself up by his bootstraps after borrowing $6 million from his dad to get started.

If you don't do that then you aren't even trying and deserve all the poverty you get.

 

[Loren Pechtel]

Of course rich millennials inherited it--there hasn't been enough time for them to have gotten rich the old fashioned way. You're not proving anything of importance.

The article wasn't about getting rich. It's more about the path toward financial stability for millennials being more protracted due to heavier debt burdens and certain increased costs unless they happened to have financial support from their parents along the way. There is a disparity between those with such support and those without it, and that may, as a general trend, remain a lifelong issue. While I may not have perfectly captured the essence of the article, I think it's a bit more on target than millennials getting rich under their own steam now that the oldest of us have entered our early thirties.

The education requirements of a good job are going up, of course it takes longer to recoup that. You're not proving that there's a problem here beyond the for-profit college crap that has hurt so many.

 

[krypton iodine sulfur]

The article wasn't about getting rich. It's more about the path toward financial stability for millennials being more protracted due to heavier debt burdens and certain increased costs unless they happened to have financial support from their parents along the way. There is a disparity between those with such support and those without it, and that may, as a general trend, remain a lifelong issue. While I may not have perfectly captured the essence of the article, I think it's a bit more on target than millennials getting rich under their own steam now that the oldest of us have entered our early thirties.

The education requirements of a good job are going up, of course it takes longer to recoup that. You're not proving that there's a problem here beyond the for-profit college crap that has hurt so many.

I'm not trying to prove a point, but rather get you to understand what the article is about. Instead of fabricating arguments against positions not being taken, just read the article. It's not that long.

 

[dismal]

The education requirements of a good job are going up, of course it takes longer to recoup that. You're not proving that there's a problem here beyond the for-profit college crap that has hurt so many.

I'm not trying to prove a point, but rather get you to understand what the article is about. Instead of fabricating arguments against positions not being taken, just read the article. It's not that long.

The statistics cited in the article do not exactly support the article:

Claim:

And then there are those who are doing just great—owning a house, buying a car, and consistently putting money away for retirement.

These, however, are not your run-of-the-mill Millennials. Nope. These Millennials have something very special: rich parents.

Evidence in support of claim:

A recent report from the real-estate research company Zillow looked at Federal Reserve Board data on young adults aged 23-34 and found that of the 46 percent of Millennials who pursued post-secondary education (that’s everything from associates degrees to doctorates), about 61 percent received some financial help with their educational expenses from their parents.

Differences from claim:

- Does not say how much help
- Does not say parents were "rich"
- Ignores 39% who got no help at all

According to Zillow, 43 percent of Millennials who got help from their parents in paying for school were also able to become homeowners. According to Census data the homeownership rate for all young adults was about 36 percent in 2014.

Differences from claim:

- Rate is only slightly higher (43 vs. 36) for people who got some help from not necessarily rich parents
- Ignores that many who go not help and found way to own home (which must exist in large numbers to explain stats)
- Does not compare those that got some help from not necessarily rich parents to population of similarly educated people

 

[arkirk]

They are people who parents can afford them following up on Romney's advice....perhaps several times in a decade. (Borrow 20K from mom and pop and let them put you through college).

 

[EricK]

I wonder what effect family size has on this. Parents who have 1 or 2 children will be able to provide more financial help per child than those have 3 or 4.

 

[dx713]

I wonder what effect family size has on this. Parents who have 1 or 2 children will be able to provide more financial help per child than those have 3 or 4.

Not sure it's that important.
Depends on the country and the cost of education of course, but an important effect of parents wealth (not necessarily 1% wealth, just them being comfortable), is financial safety. When you know you have the safety net of the parents being there to help you through a rough time (car breaking down, health accident, one more semester needed, opportunity for international experience, etc) it's much easier to concentrate on your courses or your first job(s) than when you must plan ahead and save for contingencies. And I'm not even talking about rental deposits or things like that, much easier to find a place to live on your first job when you have solid back-up than when you're on your own.
I know that, despite costing my parents only lodging (we still have free tuition around here), that could have been covered by a student loan, I'm not sure my brothers and I would have made the same life choices, and now be at the same place, without the parental back-up.

Note that I'm talking middle-class here, not wealthy, but I wanted to get down from the tip of the iceberg, there's more to parental support than money actually flowing down.