Millennial Moola - Page 9 of 21 - Personal Finance For the N64 Generation

Our Ancestors Would Not Recognize a Modern Budget

The Bureau of Labor Statistics has been tracking the spending habits of Americans for over 100 years now. The results of their study both profoundly support the benefits of capitalism as well as show its temptations. Looking at the survey data, it is easy to see why the famous economist Keynes, believed we would be working 15 hours a week in the 21st century. He underestimated our desire for status, material possessions, and comfort. In fact, our great great grandparents would not recognize the modern budget of an average American family. Continue reading “Our Ancestors Would Not Recognize a Modern Budget”

How Many Americans Know What Compound Interest Is?

A reader pointed out a fascinating study from George Washington University and Standard and Poor’s. The researchers wanted to discover how many people around the world know what compound is. The survey targeted over 150,000 respondents in 144 countries. The study can be found from its original publisher here. In this post, I am going to focus on the policy implications from the stunning realization that 39% of Americans do not know what compound interest is. Continue reading “How Many Americans Know What Compound Interest Is?”

My Husband’s 401k Options Are Changing. What Should We Do?

I got an interesting email from a friend recently who was trying to make heads or tails of her husband’s 401k options. She got a mailer saying that some of the mutual fund choices were going to change and that they needed to make a decision where to direct their new funds. If this ever happens to you, I suggest taking a look at your 401k fees and fund choices. As we will see, her husband’s 401k options might be better at making a finance company rich instead of them. Continue reading “My Husband’s 401k Options Are Changing. What Should We Do?”

Can I Ever Pay Off These Massive Student Loans?

This case study is a fascinating look into why the higher education system is broken in America. We will call this reader Jane to protect her anonymity. I’ll describe her situation rather than quote what she told me. She has $388,000 in debt from a single, consolidated loan directly from the federal government at an interest rate of 6.75%. Continue reading “Can I Ever Pay Off These Massive Student Loans?”

Promposing Costs Are Out of Control

Unless you have a younger sibling or cousin, you might be unaware of the bullet we older Millennials barely dodged. The average junior or senior high schooler today spends $324 on promposing costs.

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My Frugal Ancestors Help Explain Why I’m So Extreme

ancestors have been very frugal — My great great grandfather’s cabin in the Smoky Mountains Source

The cabin above was built by my great great grandfather in the mid 1800’s. It is one of the oldest surviving structures in Great Smoky Mountains National Park. Visiting it gave me great perspective on the toughness of my frugal ancestors. Why are some people spenders and others savers? There are definitely exceptions, but I think the values you grow up with have a lot to do with it. People ask me how I live in such “poverty.” These folks want to know what motivates me to not buy new clothes for two years or eat Brussels sprouts for lunch. To answer the question adequately, I think I need to explain my family history.

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The Extreme Racial Inequality in Savings

I read a shocking statistic the other day that I felt compelled to write about. Around 75% of households headed by an African American or Hispanic have less than $10,000 saved for retirement. To put it in perspective, $10,000 will generate about $33 a month in retirement income. I did further research into the financial disparity between black and brown Americans and the rest of us, and found stark racial inequality in savings in America. Once you see how serious the problem is, perhaps you become convinced like I did that we need federal financial literacy standards in our schools to help pull minority communities out of poverty. Here are a few areas where the numbers absolutely stunned me. Continue reading “The Extreme Racial Inequality in Savings”

Case Study: Should I Invest or Pay Down the Car Loan?

Check out this case study from Frank on whether he should invest or pay down the car loan and mortgage. Here’s the full email below. If you have financial questions for me, send them to [email protected] for potential inclusion in a Millennial Moola case study. Continue reading “Case Study: Should I Invest or Pay Down the Car Loan?”

Of Course the Trash Trucks in Iceland Are Mercedes, Yet I Love It Still

In case I seem like I’m posting a little less over the next ten days, I’m currently on a trip through Europe with my little brother. He asked me to show him the ropes of travel on the cheap through Europe, at which point I get to return to the US for some cool trips to Montreal and New York City with the girlfriend. Iceland is synonymous with quality, a point that was driven home for me when we were walking down the street this morning and I saw one of the most beautiful public vehicles I had ever seen. The trash trucks in Iceland are Mercedes, and little facts like this provide me with enormous amounts of free entertainment even when I travel to the most expensive countries in the world. Continue reading “Of Course the Trash Trucks in Iceland Are Mercedes, Yet I Love It Still”

Someone Should Get Fired Over This $17,000 Table

Sometimes you look at the news and a clear metaphor for what is wrong with the world just jumps off the screen and slaps you in the face. I experienced something like this when I read on FiveThirtyEight’s daily stats page that officials at the University of New Hampshire bought a $17,000 table. The table sits 16 people, and sits in the dining hall. You should be morally outraged over this shameless waste of money. Continue reading “Someone Should Get Fired Over This $17,000 Table”