i don’t have enough money.
Posted by nathandiehl on 16 Nov 2006 | Tagged as: random.
Make-believe story to follow… (purely hypothetical!)
Say Emily and I both have decent paying jobs…so we decide to go buy a $200,000 home, a new 07 Mustang, a 07 Jetta for the wife, and a 07 Ford F-150 for me to play in. 
So…then we go buy anything we want at Target, putting it on our BP credit card (because we get 2% rebates!)…
So, soon we have a $1,500 mortgage payment, $400 car payment, a $450 Jetta payment, a $600 truck payment and a credit card balance of $5,000.
So, we go to our parents and say, ‘mom and dad, we just don’t make enough money. can you give us $1,500 this month so we don’t get forclosed on?’ then we go to the other parents and say, ‘mom and dad, we just don’t make enough money to pay our car payments. can you give us 1,450 for our vehicles?’
What do you think they would say? What do you think they should say? What would your parents say? What would you say to your children if they were in a situation similar to this?
8 Comments »
on 16 Nov 2006 at 2:38 pm 1.
Carma said …
Purely hypothetical? Haha. This is why I believe that when student take Econ in school they should be taught budgeting, mortgages, how to balance a checkbook, the truth about credit cards. Why not offer a “real world” economics class that all student must take? My parents would tell me to downsize. I hope to teach my children “real world” economics so they can avoid that situation.
on 16 Nov 2006 at 7:13 pm 2.
Abby! said …
Ay…if it were me (as a parent) in the situation, I would refuse to help them with anything besides setting up a budget…or advising them to sell their stinkin’ stuff!
I have a friend who is seriously in a similar situation right now. She is newly married…and expects to live as comfortably as her parents do after decades of their own hard work. Our generation has become so used to nice, new things being handed to us that we almost expect that to be true of our adult lives, when we’re merely beginning to make that path for ourselves. I’m at a stage right now where I am praying for God to really establish my finances and teach me how to manage my money so that when I’m in a parental role, I can teach my children to be responsible without having to learn the hard way.
Okay…done rambling now
Bye, Nathan!
on 17 Nov 2006 at 9:08 am 3.
Todd Helmkamp said …
I am thankful that I had nearly 10 years of living on my own before I got married to realize that money really doesn’t grow on trees. But still, I have been a ridiculous spendthrift. My wife has been wonderful in helping me keep our money in the bank. I agree with Abby that we are an “instant gratification” society.
I would hope that any parents that love their kids would say, “sell some stuff and live within or below your means. We’ll help you learn how to do that.”
That’s what I would tell my kids.
on 17 Nov 2006 at 9:08 am 4.
Todd Helmkamp said …
P.s. If it’s not a house or your first car, and you can’t pay cash for it, you don’t need it.
on 17 Nov 2006 at 11:59 am 5.
Natty said …
Yes, my first thought was, “Why do 2 people need 3 cars?” Hypothetical couple obviously does not need an expensive vehicle “for play” when the bills can’t get paid. They also do not need the newest and thereby, most expensive vehicles for their other 2 cars. Always buy used. Or lease, and even then do so with extreme caution.
The house could be a good investment in the long run, but depending on where you live (I’m assuming it’s Northeast Indiana, like my sister), $200,000 is pretty indulgent for the first house or two a young couple buys. Also, I’d strongly suggest they hire an accountant to make sure they’re getting all the tax breaks they’re entitled to as a young married couple and first-time homeowners.
I’m totally with Abby on this one. But then again, I’m also preparing to take lifelong vows of poverty (not to mention, *gulp,* chastity and obedience), and I also tend toward living simply anyway.
on 17 Nov 2006 at 6:40 pm 6.
Adam Diehl said …
I think your parents should fork it over, Nathan. I mean if they’ll fork it over for YOU . . . then certainly they’d fork it over for their other better-looking son!
on 17 Nov 2006 at 8:56 pm 7.
Abby! said …
Oh…my…word…
At least Adam’s not conceited
on 18 Nov 2006 at 12:18 am 8.
joe said …
I think we should ask Emily who’s better looking…