What's the scoop on 20-somethings who seem to have $$$ (Pittsburgh: spring break, real estate) - Pennsylvania (PA) - City-Data Forum

Caladium · 09-13-2011, 06:58 AM

Quote:

Originally Posted by SteelCityRising

I drove up Joncaire Street in Oakland yesterday and saw an Acura SUV and a Volvo sedan (both new) parked in two different driveways of student housing. I also saw a young woman (about 20) getting into a Lexus sedan near Mad Mex. For as much as people on this sub-forum like to say that there ARE tons of high-earning early-20-somethings in Pittsburgh I'm inclined to think that any Pitt student driving such a vehicle as they grab expensive take-out food has pretty much been given a blank check by their parents.

^^ Here's an interesting quote I saw in another thread. I thought it might make a good topic for a new thread.

So, what's the scoop on 20-somethings in Pittsburgh who have been able to buy nice cars, homes, etc.?

First off, are there a lot of them? Is this just a handful of the young people, or would you say a good percentage are able buy cars and homes? Are they most living off their parents, working at jobs that pay well, or people who were very frugal for years and managed to save up for such things? Or maybe a little of all three? Or, maybe they made money in another city, and then moved to Pittsburgh because it's a city where you can buy relatively inexpensive real estate?

What do you guys think?

SteelCityRising · 09-13-2011, 07:18 AM

Since you quoted me I thought I'd add that these were obviously college students, given their Oakland addresses and out-of-state license plates. I don't really think there's any question in my mind that these possessions they own were "hand-me-downs" from their parents. I worked full-time through college earning $11.50/hr. (plus commissions), and there's no way I could have afforded such luxuries while also paying for tuition, books, etc., which is why I know the money is coming from elsewhere. I can't say I'm envious, but what I can say is that those parents are setting their children up for a lifetime of entitlement and not truly understanding the value of a hard-earned dollar.

psychomantis · 09-13-2011, 07:28 AM

Heh...... I graduated from IUP fairly recently and there were a decent number of kids driving around in nice cars that would be impossible for them to afford on their own (new Corvette Z06, Jeeps, G8 GT, WRX, luxury SUVs, etc). My facebook newsfeed would be filled with friend's pictures going to spring break in Cancun, Daytona Beach, cruise ships, Europe, and other places. The only thing I can think of is they have parents footing the bill, using student loans, or both.

fleetiebelle · 09-13-2011, 07:31 AM

I think that yes, most of these young people are college students getting things from their parents. It's the next phase of helicopter parenting. There are plenty of parents who don't want their children riding a unsafe bus in an unfamiliar city, so they buy them a car. They don't want them living in a crappy dorm with strangers, so they rent them an apartment. There are still plenty of students who are paying their own way and taking the bus, you're just not noticing them.

youngabe · 09-13-2011, 07:38 AM

Quote:

Originally Posted by psychomantis

Heh...... I graduated from IUP fairly recently and there were a decent number of kids driving around in nice cars that would be impossible for them to afford on their own (new Corvette Z06, Jeeps, G8 GT, WRX, luxury SUVs, etc). My facebook newsfeed would be filled with friend's pictures going to spring break in Cancun, Daytona Beach, cruise ships, Europe, and other places. The only thing I can think of is they have parents footing the bill, using student loans, or both.

I bolded the last line of your statement. Coming out of school not too long ago, I can tell you that it amazed me what people used their student loans for.

Not to mention, never make an assumption based on someone's appearance until you've seen their financial statements! The amount of people living on a bubble of debt that's about to collapse is truly astonishing. Just because someone has a luxury vehicle or eats at the finest restaurants doesn't mean they can legitimately afford that! It's called, "plastic money!"

A family member of mine once worked at a major car dealership here in the area. She used to tell me stories of how people would come in and buy the nicest Cadillac Escalade and end up with a monthly payment of $1,000+. They'd return back to the dealership saying they wanted to return the vehicle because they were unable to afford it.

Not to mention, nowadays, you can pay many utilities using credit cards. Ever heard the old statement, "robbing Peter to pay Paul?" I can't tell you how many times I assumed that "John" must be doing quite financially well...only to find out that John is about to lose everything, or doesn't answer his phone because debt collectors are constantly calling.

I'm not saying that everyone behaves in this manner, I'm just saying, looks can be deceiving! Keep that in the back of your mind.

ML North · 09-13-2011, 07:46 AM

Here's data from some of the "20-Somethings" that I know in Pittsburgh:

If you're really curious, you can find a wealth of compensation data at GlassDoor.com.

And as I footnote I'll add that most of the well-off young professionals that I know live quite modestly. Many of the extravagant types are showing off someone else's money, whether it be via inheritance or credit.

Tiger Beer · 09-13-2011, 07:55 AM

I doubt it's a Pittsburgh thing, per se.

I'm not from a family with money either, but I definitely remember my university days at Michigan State, and seeing an immense amount of wealth among a certain percentage of college kids. I'm sure they weren't the majority, but they were certainly there in visible numbers as well.

Caladium · 09-13-2011, 07:57 AM

Since Pittsburgh has so many families with grandparents and great grandparents living in the area, it's possible that many of these kids inherited a car. It doesn't necessarily mean the family is wealthy. My son is essentially a self-made man, but he drives a nice Nissan Maxima that he didn't buy himself--he used to take the bus, and then his grandma died and left it to him. (OTOH it's also true that he was frugal for years, and after he got married he was able to buy a house on his own at 27. It's because he got a good job and has always been good with money--much better than I was at his age.)

Caladium · 09-13-2011, 07:59 AM

Speaking about inheritance.... is it common for people in Pittsburgh to leave houses to someone in their will? That might be one reason some 20-somethings have homes already.

robrobrob · 09-13-2011, 08:10 AM

70 grand a year is pretty good in Pittsburgh. Even if you have student loans you are living large. I would guess take home is around 5000 a month. Spread the loans out over 30 years and you are fine. When you buy a house that is where the big bills start rolling in.

Maybe they are dual income no kids?