AIBU to think the older generation is deluded to think this is greed and recklessness?

[Datinggal]

Early thirties and have a 6k credit card debt (interest free) after buying a car, as do two of my other colleagues my age.

Recently a few colleagues over a lunch said to me and the two others my age that they were ‘astonished’ at how easily younger people get into debt and that it was never their mentality. They said we have good jobs and it is just greed of our generation, wanting things now, that we should save before we spend.

AIBU to feel cross about this? I had to save 25% deposit for my house and have student loans of 240 a month to pay back. If that wasn’t the case then of course I would have had the money to buy a car outright! And yes I need a car for work.

I know it’s a case of getting over it and everyone is entitled to their opinion. But I sometimes get the feeling the older generation just does not get it?! AIBU?

What is it you think they don't get?

I think it's just a different way of looking at things. And I don't agree it's the view of the entire older generation (whatever that may be)!

I was always taught that if I wanted something, you saved for it and then bought it. You never got into debt unless it was a mortgage. My parents had very little money and were terrified of debt. They still managed to save for a deposit on a house.

Not sure your colleagues represent an entire generation.

Well no probably not an entire generation but in my experience it is most! I was surprised by the comments and thought they were very short sighted.

I am 38 so not the 'older generation' whatever that is. I am bringing up my kids to work and save, not get into debt.

Zero do you think it is greed then to have debt for a car?

I'm older than you and I would have bought a cheap car that I could afford, rather than take out a loan.

Your student loan is irrelevant, as the repayments are tiny.

Borrowing money is the most expensive way of doing anything.

They are unreasonable to use critical language like ‘reckless’ or ‘greedy’. That is not fair and a bit unkind.

I understand why you have a loan. However, although interest free, it does have to be paid back eventually.

Your few colleagues don’t represent the older generation but stop discussing your finances with them if you want to avoid the judging comments.

Sherlock I don’t think 240 a month is tiny to be honest. Over a year that would be a decent amount towards a car.

I'm on the fence a bit. I'm older than you (46) and definitely have the attitude that you don't get into debt unless it's a mortgage. My car cost 1200 6 years ago and is still going strong, so my mind boggles a bit at 6 grand of debt for a car.

But I also hear the argument that buying a cheap car works out more expensive in the long run because of repairs. This has never happened to me but I can see why it might scare people into spending more, iyswim?

But I sometimes get the feeling the older generation just does not get it?!

I just do not get this! What is 'it'?

Zero do you think it is greed then to have debt for a car?

I think greed is the wrong word but I would never get into debt for a vehicle, I own 4 vehicles and every one has been saved for. My daughter is currently doing her driving lessons, No way will I allow her to get into debt for a car, she will save and buy a car she can afford, then more than likely keep saving to upgrade when she can afford to.

www.theguardian.com/inequality/2019/jun/20/young-adults-have-less-to-spend-on-non-essentials-study-says

Literally just read this so I think you have a point. Not sure how you are defining 'older' but I had a similar conversation with my boss in his 50s. He bought a house when he was 21 and felt that anyone else who worked as hard as he did would be able to do the same. However when we actually looked at the prices of a similar standard house today, a 21 year old would need to be earning 33k to afford it. Not impossible but very unlikely. The economics are just so different to how it was 30-40 years ago.

I don't think it's odd to have credit for a car, and as yours is interest free it's a very sensible form of debt.

Yes you are being unreasonable to make that generalised sweeping statement based on a single conversation which you have projected to an entire population.

You have become offended by an ill informed opinion and jumped to position of making an equally ill informed opinion. This results in division and prejudice.

You did not need a £6k car.

They were not necessarily talking about you either so their opinion

The behaviour you have condemned is one you are following. Why is that?

Putting in quite simply you have a lot in common with these women and it’s not pretty. You should become friends. I am sure there is a group you can mutually denigrate.

I think that it’s entirely up to you, many older people think differently but I know plenty of older people with a lot of debt too. It’s all very well people saying about saving etc, depending where you live saving for a house deposit is like pissing in the wind whilst trying to pay for commuting, rent, bills and food if single

Sherlock Holmes, £240 a month is not a tiny amount!

I'm 'older generation' (late sixties) and when husband and i were younger we had loads of debt and no spare money! There were times when it was really worrying.

Obviously we're fine now, quite comfortable. I sometimes think it's too much too late, we could have done with a bit of affluence when young but we didn't and I am content with our lot now, can even save money.

The older generation - to me - ie our parents and their contemporaries, were far more careful and espoused a lot of the views outlined in the op, eg save for things, don't buy what you can't afford, never get into debt etc. Times were different though and they'd been through WW2, rationing and all that, so would naturally have a different view point.

it is just greed of our generation, wanting things now, that we should save before we spend

I am nearly 60 and this exactly was said about our generation.

£6000 is a lot of money on a car. Up to recently I was running around in cars I bought off eBay which didn’t cost more than £1000.

I personally would have leased a car though.

There were so many cheap deals around in March.
It probably would have worked out cheaper by the time you take off depreciation etc
If it is over 3 years old then you have to cost in MOT and repairs as well.

Not sure what you mean about the older generation? I’m also unsure what it is that ‘the older generation’ don’t get.

I’m 37, I’m on a low income and the only debt I’ve ever had was a small mortgage with my ex. Other than a mortgage I would be very unlikely to go into debt for anything. I’ve always saved for whatever I want or need and just the thought of owing money makes me anxious and uncomfortable.

My mum however, who you would probably describe as the older generation, likes to buy things, and has borrowed money for various things, big and small. As has my sister, who is a bit older than me. She and her XH got themselves into masses of debt, her half of which she’s still having a nightmare paying off.

I’m not about to judge you for your 6k car but it’s certainly not something I would do. You’ll be the one who has to live the consequences so it’s nothing to do with anyone else, older generation or not.

Some of it is because expectations are different... from employers as much as from "young people".

Some employers get difficult about cars being "too old". DH is a vet who goes out to visit clients. He needs a big car to get all the necessary stuff in it. It also has to be reliable because not going to work because car failed would be very frowned upon. Realistic minimum for a suitable car would be 8-10k! If we were lucky. It took about 6 months to find something in budget when we bought the current car! Leasing is not a more affordable option when doing 40k miles a year either.

Some of it is housing costs - When the previous generation were young you could afford to live close to work, or at least a realistic commute on the regular bus service away. Now you are expected to drive, be flexible with hours and chances are you have to live somewhere inconvenient because that's all you can afford! See prices close to stations vs further away, even in London.

They don’t get many things. That’s the root of evolution. Generations change.

It’s not rocket science.

I've never had access to a 0% credit card so I wouldn't put anything huge on a card. So I think that's a significant factor for me.

I have 4 mortgages but I work hard to pay them off to allow me to retire earlier. And help pay for my kids through uni.

Credit card debt doesn't help me in the long term.

You must be on a decent salary to be paying back €240 per month on your student loan. And sorry but why did you spend 6k on a car?

To be honest a lot of older people are fairly tight with money as they always think another war is coming. My mother still goes on about rations etc so it clearly hit hard that post war ration period. She is very much from a no debt generation around here and would wait a couple of years to get a carpet while having no flooring! Obviously it was harder to get credit in those days too.

The whole world lives in debt now including the government. Debt is generally fine as long as interest is nil or low and you can make the repayments. Having a good job with good prospects helps.

I wouldn't get into debt to buy a car and I'm younger than you. Six grand is excessive too!

I would save and buy a much cheaper, second hand car instead.

But then I would never get into debt for anything (except a mortgage).

Though I get a lot of similar advice from the in laws about 'my generation'. I am actually far more frugal than them but would never say it, as they would still insist that I'm wrong anyway. Some people like to bash other generations without questioning their own choices/spending. I wouldn't worry about other people's opinions.

Years ago, my economics teacher pointed out that younger people are generally expected to have a greater ratio of debt to income precisely because they are making their first big "life purchases" and for many, wisely managed debt is the only feasible way to build up assets. He said that most economists are relatively unperturbed by this because young people, in the main, have years and years to earn and to pursue career and pay progression so the debt:income ratio diminishes naturally.

As it turned out, he was right about a lot of things - and that was forty years ago, before you were born. FWIW, I think you are managing your finances wisely but it's no more of my business than it is of your colleagues. Pay them no heed.