|
The World Has Changed
When smart youth
examine their future this is the discouraging sight they see:
• More than likely they will have to go
into debt to get started.
• Once they leave school they’ll
spend 10-30 years servicing their debt.
• They may not find a job in their field
of their study.
• When they find a job, it probably won’t
be secure.
• They will have their income overwhelmingly
cut by taxes and social security/insurance.
• The social security/insurance they pay for probably
won’t be there when they retire.
When those smart
youth look for answers they find:
• Parents who are trapped in lifelong jobs
and in debt themselves.
• Schools that do not teach financial literacy.
• Banks that offer limited investment opportunity.
Bright youth with their whole promising lives
ahead of them see a future in the workforce with no end in
sight and no options to get out before they even get their
first job.
Let’s face it, the world has changed
from what our parents and grandparents knew. Getting a good
job with security and sticking it out for 40 years doesn’t
cut it anymore.
And even if it did, do you want to work like
a dog your whole life passing up time with friends, family,
and living your dreams?
Youth know that there’s a different
world out there for some people. “Rich people”
don’t live this way. Why can’t that be me? Why
can’t that be you?
When smart youth
examine their future this is the discouraging sight they see:
- More than likely
they will have to go into debt to get started.
- "A consistent majority of students who borrow to pay for their higher education believe they could not have gone to college without student loans. Over 70% continue to agree that student loans were very or extremely important in allowing them access to education after high school." 2002 National Student Loan Survey, Nellie Mae Student Loan Applications
- “Undergraduate student loan debt has increased significantly since 1997. The average undergraduate debt is $18,900, up 66% from $11,400.” 2002 National Student Loan Survey, Nellie Mae Student Loan Applications
- “Students attending graduate school borrow, on average, an additional $31,700 beyond their undergraduate borrowing, an increase of 51% since 1997.” 2002 National Student Loan Survey, Nellie Mae Student Loan Applications
- “An increased number of borrowers
feel more burdened by their education debt, with about
a quarter of the borrowers perceiving themselves as
having significant problems. Those who say they feel
burdened by their education debt increased to 55% from
50% in 1997. Fifty-four percent also say they would
borrow less if they had to do it over again, up from
45% in 1997.” 2002 National
Student Loan Survey, Nellie Mae Student Loan Applications
- Once
they leave school they’ll spend 10-30 years servicing
their debt.
- “Women graduating with a 1 year
certificate from polytechnic will take an average of
23 years to repay their student loan.” 2002
Press Release: New Zealand University Student's Association
- “For example, on a loan amount
of $15,000 with an interest rate of 8.25%, the beginning
monthly payment would be $105 and the ending monthly
payment would be $238 for the loan to be paid in 15
years. The total amount repaid for this loan would be
$28,628; that is $13,628 in interest.” Pace
University’s Online Newspaper, March 1999.
- They may not
find a job in the field of their study.
- “Have college graduates increasingly
had to take jobs previously held by high school graduates
and dropouts, as the critics contend? The proportion
of graduates saying that their job did not require college-level
skills increased from 24 percent in 1976 to 44 percent
in 1991 and remained at that level in 1994.” Outcomes
for College Graduates, 1999, www.ed.gov
- When
they find a job, it probably won’t be secure.
- "Job separation rates for older workers were similar to those of much younger workers. However, older workers had less chance of becoming re-employed. Rates of reemployment after one year declined steadily after age 25." Statistics Canada December 2002 Perspectives Magazine
- "Older worker experience considerable job turnover. Between ages 50 and 65, the average number of job seperations per worker was 3.2 for men and 2.6 for women." Statistics Canada December 2002 Perspectives Magazine
- "In July 2001, total payroll jobs declined again
by 42,000, more than accounted for by 49,000 job layoffs
at manufacturing firms. This is the third month out
of the past four that payroll jobs fell, totaling 259,000
jobs lost. The unemployment rate held steady at 4.5
percent last month, but it will head up to near 5 percent
before year-end." National Economic Outlook -
August 2001 by PNC Bank
- They will have
their income overwhelmingly cut by taxes and social security.
- “Federal Income Tax Rates
for 2003 are:
- 16% on the first $32,183 of taxable
income;
- 22% on the next $32,185 of taxable
income;
- 26% on the next $40,280 of taxable
income; and
- 29% of taxable income over $104,648.”
Revenue Canada Website
- “7.65 percent of your paycheck
goes to Social Security, and your employer pays out
7.65 percent.” U.S. House
of Representatives Congressional Record, Wednesday,
June 5, 1997
- The
social security they pay for probably won’t be there
when they retire.
- “Even the maximum of $725 a month
is not enough for a person to live. This is our biggest
concern. Many retired people have many problems because
Social Security doesn't pay enough, plus added to the
problem is the government needs more money; Social Security
is an easy target.” U.S.
House of Representatives Congressional Record, Wednesday,
June 5, 1997
When those smart
youth look for answers they find:
- Parents who
are trapped in lifelong jobs and in debt themselves.
- "Today (2001), the typical U.S.
household carries an average credit-card balance of
$7,500 up from less than $3,000 in 1990."Drowning
in Debt, Gary Belsky
- "Household debt for those 65
and older is sky-rocketing -- up 164 percent on average
in eight years, to $20,302 in 2000, according to SRI
Consulting Business Intelligence. That compares with
a 92 percent increase for those under 65."Older
Americans Are Piling On Debt, SRI Consulting Business
Intelligence
- "Just under half of workers in their 50s and 60s who ended a full-time career job betweeb 1993 and 1997 were working 24 months later. Three in 10 began a new full-time job, while 1 in 10 began a part-time job." Statistics Canada September 2002 Perspectives Magazine
- Schools that
do not teach financial literacy.
- The last time money was taught in
public schools in Canada was in 1926 in Ontario.
- Banks that offer
limited investment opportunity.
- "The national average interest on
a passbook account was 2.12 percent; the average on
a statement savings account was 2.17 percent."Bankrate.com
- “The average yield on interest
checking accounts has dropped from 0.61 percent to 0.57
percent since March.” Bankrate.com
- “The highest-yielding money
market deposit accounts currently yield in excess of
2 percent annually, a crucial threshold as inflation
is currently running at a similar pace. Meanwhile, the
highest-yielding three-month CDs are currently earning
1.5 percent, and the highest-yielding six-month CD earns
2.05 percent.” Bankrate.com
|
