quote:
Which is why in about twenty years we are going to have the majority of entire generations of GenX followed by millenials heading into retirement with $0 saved - stupid financial decisions like financing a $60k suv into $140k over the life of their ten year loans because OMG I CANT BE SEEN IN A FORD I MUST HAVE THE INFINITI *AT LEAST*

Totally agree. It is a huge change in mindset that really started in the 80's, which was the decade of conspicuous consumerism.

My parents are in their mid 70's and retired. They saved all of their working lives and see it as somewhat of a badge of honor they will be able to pass on their savings to their children in the form of an inheritance. I tell them all the time that they owe me no inheritance whatsoever. That they paid for everything to get me to the point where I could be a self-sustaining adult, and that they should enjoy their money and the fruits of their labor in retirement. Doesn't matter. They are proud they can pass something on to their kids. That means more to them than a luxury vehicle.

That is not the same mindset now. Far fewer people are saving like prior generations did. Now, some will say that is because the cost of living is so much greater now than then and people can't save like prior generations. There is probably some truth to that. But is that because the lack of emphasis on saving is the reason the cost of living has risen so dramatically? Sellers can only sell a good at the max price people will pay. If the willingness to pay the max price continues to go up sellers are going to simply keep raising their prices.

When it is not all that important to have a lot of money saved for "tomorrow" you are willing to spend much more of it "today".