You're the youngest
STUDENT writes:
MONEY PROF responds:
What's funny about life is the young adults that know they need more discipline don't need as much more discipline. Then again you can apply that to any age group.
New medical research helps explain why people under 25 don't have fear of standing by the mailbox broke waiting for the SS check ( no, I didn't make this up) :
The part of the brain that weighs risks and controls impulsive behavior isn't fully developed until about age 25, according to the National Institutes of Health.
This also explains the high % of car accidents for the under 25 group. Logically early 20s should be by far the least accidents. This group has some experience driving by say 20, fast reflexes, better vision than the average person etc. etc. But NO fear of the risk.
My point on the above is not to use the above to justify the wild party's. "It's not my fault, it's my brain." LOL :)
My point is to accept that mid 20s are weak on controlling impulsive behavior and work around it. For example: direct deposit the money to your IRA to help lower the temptation of having the money in your hand to buy the new pair of sunglasses to add to the 3 other pairs you already had. ( Why I used sunglasses in the example is I know that the former student bought new sunglasses when she not only had other pairs, but was so broke she couldn't pay her bills.)
I also know that a current "member" bought more sunglasses when she already had a pair or two, has ALL bills paid, but doesn't have money to save.
For those of you over 30 receiving reading this: in case you skimmed the above because you're not 24 ( he must not mean me :)............... just insert your age where it reads " mid 20s". YES, YOU.
The question to ask yourself now, take a few min. to think this over:
Do you really think that when your 55 and laying on the beach, ( while your former friends are working 2 jobs broke and no IRA) that you'll say: jees, I wish I would have bought more sunglasses AND latte when I was younger.??????????
You might say later in life, for example: I wish I had a really great week vacation in the Caribbean when I was younger.
Sooooooooooooo, start a savings program for that.
NO I won't say don't go on the vacation and save even more!!!!!!!!!
That is the part I've never been very successful in teaching.
The vacation might be worth it to you now AND looking back on it later in life. So go & enjoy it, IF, and ONLY IF you saved for it in advance.
Repeat: IF, and ONLY IF you saved for it in advance.
There is a difference between "pissing away" money, and spending money that not only did you enjoy spending today, but won't regret that you spent it looking back on it later in life.
I know that is a really hard concept to accept. Why ............ because the sunglasses really look good and I want them NOW.
Did I ever tell you the story about two three year olds with one toy...........
"That's not the way it works in the real world and I need the discipline.___________
MONEY PROF responds:
What's funny about life is the young adults that know they need more discipline don't need as much more discipline. Then again you can apply that to any age group.
New medical research helps explain why people under 25 don't have fear of standing by the mailbox broke waiting for the SS check ( no, I didn't make this up) :
The part of the brain that weighs risks and controls impulsive behavior isn't fully developed until about age 25, according to the National Institutes of Health.
This also explains the high % of car accidents for the under 25 group. Logically early 20s should be by far the least accidents. This group has some experience driving by say 20, fast reflexes, better vision than the average person etc. etc. But NO fear of the risk.
My point on the above is not to use the above to justify the wild party's. "It's not my fault, it's my brain." LOL :)
My point is to accept that mid 20s are weak on controlling impulsive behavior and work around it. For example: direct deposit the money to your IRA to help lower the temptation of having the money in your hand to buy the new pair of sunglasses to add to the 3 other pairs you already had. ( Why I used sunglasses in the example is I know that the former student bought new sunglasses when she not only had other pairs, but was so broke she couldn't pay her bills.)
I also know that a current "member" bought more sunglasses when she already had a pair or two, has ALL bills paid, but doesn't have money to save.
For those of you over 30 receiving reading this: in case you skimmed the above because you're not 24 ( he must not mean me :)............... just insert your age where it reads " mid 20s". YES, YOU.
The question to ask yourself now, take a few min. to think this over:
Do you really think that when your 55 and laying on the beach, ( while your former friends are working 2 jobs broke and no IRA) that you'll say: jees, I wish I would have bought more sunglasses AND latte when I was younger.??????????
You might say later in life, for example: I wish I had a really great week vacation in the Caribbean when I was younger.
Sooooooooooooo, start a savings program for that.
NO I won't say don't go on the vacation and save even more!!!!!!!!!
That is the part I've never been very successful in teaching.
The vacation might be worth it to you now AND looking back on it later in life. So go & enjoy it, IF, and ONLY IF you saved for it in advance.
Repeat: IF, and ONLY IF you saved for it in advance.
There is a difference between "pissing away" money, and spending money that not only did you enjoy spending today, but won't regret that you spent it looking back on it later in life.
I know that is a really hard concept to accept. Why ............ because the sunglasses really look good and I want them NOW.
Did I ever tell you the story about two three year olds with one toy...........
posted by MoneyProf at Monday, March 07, 2005
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