The past few days, I’ve encountered people making poor economic decisions – that seem obvious, but for whatever reason, they were not obvious to the individuals.
Someone moved into a new place and bought all new furniture, at expensive stores, while complaining they had no money left over. Buying used, or at Walmart, had never occurred to them.
Another was discussing the challenge of saving for college education for her 2 kids (age 14 and 16) – but she has an IG page full of world travel with the kids. Now, she writes a social media post about the challenge she now as saving for their college (to her credit, she does intend to save now, intends her kids attend in-state public colleges, and choose career paths with a good ROI).
Another was a story today, claiming Gen Z is flocking to “luxury resorts”. I priced each of the resorts they mentioned, and these were $600 to $1,700 per night! I doubt many Gen Z are spending time there! But marketing is creating an expectation that this is how one is supposed to live! And this influences people’s behavior – and to then make poor decisions.
Life is about making sensible economic choices.
Today, many have a nice new house, late model cars, an IG page full of global travel photos, and then say gosh, sending kids to college is going to be expensive! (Especially those elite private universities!)
Most cannot “have it all” and need to make practical choices. But they have never learned how to make sensible choices – perhaps they never had to when young and did not learn how to act “economically”.
Economics is about making choices.
This does not mean you should not enjoy life – I’m with @BoomerDivvies ‘s thesis that you should enjoy the journey through life too. But you should make wise decisions and realize that wealth is created by earning, saving and investing – not by spending.
Am thinking – perhaps – I should devote my X account to education about making practical economic choices!
