When Did Young People Become Such Pansies?

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Nov 142011
 

Like many of my fellow Canadians, I watched the CBC documentary Generation Boomerang on whichever night it aired last week. I think it was Thursday, and we both know I’m too lazy to verify this information. So let’s go with Thursday. For those of you who are either American or have lives, let me give you the skinny. The show profiled several Canadian 20 somethings who either decided to move back in with their parents after graduating college, or just decided not to leave in the first place. Some of these young adults were gainfully employed, they were just using the move home as a stepping stone to distant goals such as grad school or home ownership. Others were unemployed, which clearly means there’s something wrong with them. They probably all smell funny. You’ve probably heard of this happening, it’s kind of a big deal these days.

Considering the title of the post, you can probably figure out what direction I’m going to go with this one. Economic times are bad, even the least bright of you have figured that out. For some reason, young people keep going to college and keep getting (pretty much) useless degrees in things like philosophy and history, thereby reducing their chances of finding gainful employment not serving coffee. Even the ones that take more useful degrees are even having trouble finding jobs, since many fields have a surplus of workers. I get it, it kind of sucks to be a young person these days.

The big issue here is as follows: how is coming of age during tough economic times going to affect young people? If what I’ve been seeing lately is any indication, there are a bunch of young adults that are pretty close to wetting their pants. They’re scared of the stock market. Job security is their number 1 concern, a sharp reversal from just a few years ago, meaning the bluest of blue chip companies are swamped with applications. Even though the financial markets have recovered from their 2008-09 crap kicking, young people are flocking to gold and real estate (at least in Canada) because those investments are perceived as safer than a well diversified portfolio of the biggest companies in the world.

This brings me to Shannyn’s comment on my post a little over a week ago about the limits of frugality. Remember that post? It’s where I begged you to take initiative and work on earning more income, preferably passively, rather than depending on frugality to get you there. Anyway, take it away Shannyn:

Risk is a great tactic to build wealth (or to not make any income 2 months after you take one as I’m finding out, hahah) but it’s really not for everyone, unless, they first get from an equitable starting point and have the drive to learn and be honest with themselves about dumb habits that hold them back.

Now, I don’t want to pick on Shannyn, except for the weird ass spelling of her name. She’s super nice, tolerates me on Twitter, and is definitely attractive enough to be out of my league. (Here’s hoping for a pity… something) Her blog doesn’t suck, you should go read it.

Now I’m going to rip her comment to shreds.

No, I’m not. I feature it because it so perfectly personifies the attitude of young people who have come to age during a time of economic uncertainty. They’re scared, possibly because if you believed the news media at the time, the world was about to come to an end. It’s tough enough being a young adult coming to grips with the fact the real world isn’t quite what you anticipated, especially during tough economic times. I understand the attitude, and I get the aversion to risk.

Anyone who’s younger than me, gather round, because this is the good part. Go ahead, call all your friends over. It’s okay, I’ll wait. Everyone’s here? Good. My years of wisdom are about to be bestowed upon you. Are you ready? I’m gonna bold it, that’s how important this advice is.

Stop being a f#%*ing pussy. Just stop it.

Risk is made for young people. If you’re 22 and you lose a couple thousand bucks because of a risky investment gone wrong, you have 50 YEARS to make that money back. You don’t have kids to feed, you will be able to handle it.  I know compounding is all good and everything, but sometimes you gotta learn lessons the hard way. If you have a roommate from hell, who takes you for some cash, just chalk that up to good experience. How much fun is life if you just play it safe all the time?

I know a guy. He’s 28, gainfully employed, generally pretty pleasant, and he still lives at home. His reason? He can’t afford to move out. I just about strangled him when he told me that. YOU’RE 28 MAN! GROW A SET AND MOVE AWAY FROM MOMMY!

Yes, I realize this is somewhat hypocritical advice coming from the guy who lived at home until he was 25. If you’re like me and are using the opportunity to pay next to nothing in rent as means to a greater goal, I applaud your forward thinking. If you’re just doing it because the real world scares you and you’d rather have your mommy make your dinner? Then you need to learn to take a risk or two.

As mentioned, risk isn’t just purely financial. Risk can mean anything from moving to a new place to starting up a sideline hustle. Taking a risk can lead to a great reward, or it can lead to some sort of suffering. Young people, please don’t be scared of it. This is the time of your life where a well played risk can work in spades. Or, if it doesn’t work out, you’ve got all sorts of time to get back on track. Follow your dreams. Youth is no time for holding back.

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 Posted by Nelson Smith at 4:20 am
  • http://www.broketo.ca Melissa

    I used to think like this, the whole, “What do you mean you’re over 18 and still living at home?” bit. I kind of still do. But honestly? If my parents lived closer to the city, I’d move home in a heartbeat. Because if I could see my dreams of homeownership or grad school achieved in two years, instead of ten? I’d take it!

  • http://twitter.com/SustainablePF Sustainable PF

    What I found so annoying about that documentary, well, a few things.

    First, our grandparents lived through the Great Freakin’ DEPRESSION!  This recession we have is peanuts in contrast.  And guess what – they moved out of their houses.  They moved to where they had a chance to find work.  10% unemployment today?  Piddly compared to the early ’30s.

    Second, the 2 women, who live at home, and feel justified doing so – but would never date a man who does the same. 

    Third, these brats all seem to have lots of tech toys and cars.  Guess what losers!  Those have monthly expenses tied to them.  Unless of course your coddling parents pay those bills to.

    Go slap that 28 yr old friend of yours upside the head.

    • Anonymous

      Well, if both members of a couple live at home, where are you supposed to meet up? I went through this during a relationship. Her Mom caught us once. It wasn’t good.

  • http://cashflowmantra.com Cash Flow Mantra

    It might have been interesting to see that documentary, but I missed it being from the States.  I agree with the sentiment.  I moved out at 21 and was married.  Got married with $30 and all my possessions fit in the backseat of a car.  Believe me, I have learned a lot of lessons during my life which I would not have learned without experiencing them first hand.

  • http://thesingletonfiles.wordpress.com/ Miss JJ

    As someone not from North America, I have always been fascinated by this moving out of parents house = independence point of view. Especially after we were bashed by an American in our local newspapers for still staying with our parents after graduation from university. :)
     
    However, the perspectives I have witnessed on the internet is quite the opposite. Take three cases:
     
    A 28 year old Asian man in an Asian city lives with his parents, is employed and contributes 15% of his take home salary to his parents to cover “rent” and expenses while saving another 20%. We have another 28 year old Asian man (1st generation citizen – parents were immigrants) in a US/Canadian city living with his parents, and contributes and saves the same. The last is a 28 year old Caucasian man of US/Canadian descent, contributing and saving the same.
     
    I have seen many, many situations on the North American centric blogs/forums etc where the last is bashed for being a pansy (to quote you), while the first two cases become acceptable once race and culture is brought into the picture. Won’t you consider that double standards?
     
    It also makes me wonder whether North Americans today are really so accepting of differing cultural standards, or are you all secretly looking down on us Asian youth still staying with our parents? :)

    • Anonymous

      Hey, I lived at home until I was 25. But when I lived at home, I probably saved 75% of my income. I paid around 10% in rent (included food) and spent a bit, but saved the vast majority. So while I applaud anyone who saves 20% of their income, I think they can do better if they live at home.

      However, I think that many young people play it too safe these days, because of the uncertain economic times. Living at home is just an example of it.

      Good comment though.

  • http://www.dqydj.net PKamp3

    Is it independence if you move out and your parents still send you money?  (“Dad, it’s a rhetorical question!”)

    How can you disagree with this post?  There is risk in not taking enough risk.  If you go your entire career and only put money in a savings account (or under a mattress) you better be saving north of 60% of your salary – because the odds you’ll get enough growth to cover yourself in retirement are low.

    By not taking risks you’re risking someone will bail you out when you retire.
     

  • http://www.moneybeagle.com Money Beagle

    I believe parents insulate and protect their kids to the point where they are unprepared for adulthood.  The example I like to use is the kids on my street.  We live in a quiet neighborhood.  Our street is a court with about 15 houses.  Low traffic, safe, no problems.  The bus drops the elementary kids off at the intersection of our court and the through street on our sub.  There are a couple of kids that get out of the bus, walk to the first driveway on our court, get into the car where their parents are waiting for them, and get driven to their house at the end of the street.  Our street has sidewalks.  This happens rain or shine, fall, winter, or spring.  You can’t tell me that those kids can’t walk the 300 feet or so from the bus to the house?  If this is representative of how these kids are raised, how are they ever going to handle it once they’re out on their own?

    • Anonymous

      Oh man, you’re so right. Parents are ridiculous these days.

  • http://novelinvestor.com JP @ Novel Investor

    It’s a great point.  My view tends to be that when things fall down they get back up better than before, not fall down further.  There’s so much opportunity out there and not just for the 20 somethings with no responsibilities.

  • Mii Ockm

    I am shocked that an older generation thinks the newer generations have it easier. Downright shocked at such original insight.

    • Anonymous

      Older generations always think that. It’s what happens when you get old. Uphill both ways, etc.

  • MD

    I really enjoyed this post Nelson. You’re spot on with your points in here. There’s really nothing to lose in your 20s. I’m 23 and I have risked money on real estate and other projects. My friends are afraid, but what’s there to be afraid of?

    As for living at home, I recently rented out my condo and came back home. The reason? I travel LOTS now. Went on three trips in first half and then did Europe for a month.

    • Anonymous

      Well, like I said in the post, as long as there’s a greater goal in mind, then living at home isn’t so bad. You get this risk stuff.

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