U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Education
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-14-2023, 05:32 AM
 
865 posts, read 820,831 times
Reputation: 1652

Advertisements

Quote:
Originally Posted by jobaba View Post
That post is more referring to people who treat saving money as a sport.

For instance, I've seen guys brag all the time about how cheap they can get cell phone plans, or guitars, or new cars. They don't necessarily have an overall goal, amassing the money itself is the goal. That creates problems, but I'll give you a better example.

Mofos buying up all the real estate and renting it out for maximum rate because they want to aggrandize their nest eggs to infinity drives up the prices of rents. Sometimes for people who don't make a lot but need a place to live. But sometimes for people who are even well educated and very diligent, but chose to do careers that fit them better or serve society.

I mean I get, if some people want to do it. But if EVERYBODY is trying to? Problem...

What does a savings account at the local brick and mortar bank with a 0.35% APY teach a teen about money as opposed to an article that implies you can make a 2900% increase on your initial investment?

That said, I expect no less from WSJ.
As I have already stated, teaching kids at the age of 5 how a savings account works and getting even low interest is an introduction to how to save money. It is a great way IMO to start a discussion of financial literacy.

I don't think anyone is suggesting that is all they need to know for life. It is an appropriate lesson for a 5 yr old. I do wish back in my high school days they had a class that taught more like investing, retirement accounts, how mortgages work, compounding interest, etc...

I do have to disagree with you on real estate investments and rents. I believe the market drives these prices. A landlord will only get the rent the market deems the property is worth just as a house is only worth what a buyer will pay for it. Also if a person chooses a career based on self fulfillment rather than income, then that choice dictates what they can afford to live in.
Reply With Quote Quick reply to this message

 
Old 08-14-2023, 06:25 AM
 
11,966 posts, read 16,516,272 times
Reputation: 15333
Quote:
Originally Posted by lauradrops View Post
I do have to disagree with you on real estate investments and rents. I believe the market drives these prices. A landlord will only get the rent the market deems the property is worth just as a house is only worth what a buyer will pay for it. Also if a person chooses a career based on self fulfillment rather than income, then that choice dictates what they can afford to live in.
And who sets the market when every renter wants to pay as little as possible because they want to maximize their retirement portfolio?

The market is set by developers and real estate speculators trying to keep up with the Joneses and who clearly are looking at their property as an investment.

It may come to the point where a degreed accountant will need an affordable housing supplement. Not there quite yet.

I will tell you as a renter that in days of yore, there WERE old school landlords that didn't raise the rent. They just didn't feel it necessary.
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 06:33 AM
 
11,966 posts, read 16,516,272 times
Reputation: 15333
Quote:
Originally Posted by tnff View Post
I'd say it teaches that the old standard of "a penny saved is a penny earned" no longer fits today's economy. Today a penny saved is worth less a year from now than if it was spent today. Like trying to save money to buy a house means you'll likely never get there. The price of the house will likely go up faster than the money you can save.
That was my savings account APY more or less.

I can't remember what it was, but it was something really low. It was really a token that represented that you could earn a bit off the top if you socked something away.

Last edited by jobaba; 08-14-2023 at 06:50 AM..
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 07:25 AM
 
865 posts, read 820,831 times
Reputation: 1652
Quote:
Originally Posted by jobaba View Post
And who sets the market when every renter wants to pay as little as possible because they want to maximize their retirement portfolio?

The market is set by developers and real estate speculators trying to keep up with the Joneses and who clearly are looking at their property as an investment.

It may come to the point where a degreed accountant will need an affordable housing supplement. Not there quite yet.

I will tell you as a renter that in days of yore, there WERE old school landlords that didn't raise the rent. They just didn't feel it necessary.
The market is set by the location. Generally higher income areas have higher rents. It is supply and demand as well. The less availability of something will call for a greater demand. If lots of apartments sit empty because nobody can afford them, then the rents will come down. It just means someone can afford it, even if they are high.

I have always made it a point for myself and my kids to own rather than rent. My son bought a co-op at the age of 25 in Westchester County NY. It was a 550 sf studio. His friends made the choice to rent instead. My son built equity and sold for 100k ( bought for 68k) and was able to put down on a house. His friends are still renting. Life is about choices. For him it is cheaper than renting and building equity. He has made good financial choices.

FYI, he is not a high income earner yet.
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 07:48 AM
 
11,966 posts, read 16,516,272 times
Reputation: 15333
Quote:
Originally Posted by lauradrops View Post
The market is set by the location. Generally higher income areas have higher rents. It is supply and demand as well. The less availability of something will call for a greater demand. If lots of apartments sit empty because nobody can afford them, then the rents will come down. It just means someone can afford it, even if they are high.

I have always made it a point for myself and my kids to own rather than rent. My son bought a co-op at the age of 25 in Westchester County NY. It was a 550 sf studio. His friends made the choice to rent instead. My son built equity and sold for 100k ( bought for 68k) and was able to put down on a house. His friends are still renting. Life is about choices. For him it is cheaper than renting and building equity. He has made good financial choices.

FYI, he is not a high income earner yet.
I'm not going to get into the generic rent versus buy discussions because there's dozens and dozens of threads about them.

Sufficient to say, IMHO, too many people are obsessed with accumulating money. In general.

You may not have seen the consequences of this in society, and the workplace, but I have.
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 08:03 AM
 
865 posts, read 820,831 times
Reputation: 1652
Quote:
Originally Posted by jobaba View Post
I'm not going to get into the generic rent versus buy discussions because there's dozens and dozens of threads about them.

Sufficient to say, IMHO, too many people are obsessed with accumulating money. In general.

You may not have seen the consequences of this in society, and the workplace, but I have.
Ok agree to disagree
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 11:27 AM
 
312 posts, read 157,083 times
Reputation: 427
Quote:
Originally Posted by victimofGM View Post
Sadly some banks are greedy. In the late 90s a relative of my ex-wife cut grass over the summer for cash. Before school started he opened a savings account and deposited the money. Next summer he started cutting grass again and when he went to deposit the money he earned he found out he now owed the bank money. They charged him fees for no account activity. Once his account dropped below a minimum amount, they charged him additional fees for being below the minimum amount. It’s so sad that some banks are like this. In the past banks encouraged young people to open a savings account. Receiving that little account book felt so special.
Is it the bank or regulators adding cost to have an account? I would bet on both.
Reply With Quote Quick reply to this message
 
Old 08-14-2023, 09:58 PM
 
Location: East Coast of the United States
26,444 posts, read 27,326,230 times
Reputation: 23707
Quote:
Originally Posted by jobaba View Post
Sufficient to say, IMHO, too many people are obsessed with accumulating money. In general.
Well, at least it's better than being obsessed with watching TV or playing video games all day.

You've got to pick your poison.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Education

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top