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Mary Quigley

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The Paradox Of Spending

Posted: 11/21/11 09:32 AM ET

Sometimes it seems like our adult children just can't win, at least when it comes to media coverage. Earlier in the month, the Wall Street Journal, in a series called Generation Jobless interviewed parents who lamented the $200-$300 monthly cost to support their adult children living at home. Later in the week, the New York Times criticized the boomerang kids, noting that "The Economy Also Feels the Pain" when college grads move home and don't spend money on setting up apartments. For expert testimony the Times cited the "paradox of thrift" postulated by John Maynard Keynes: "Saving is good for the individual, but en masse can hurt the economy by reducing demand."

Based on my experience and that of friends, I have to humbly take issue with these articles. The figure of $200-$300 is off: It's way too low! And, the Gen Y college grads I've encountered do more than their share to stimulate the economy, especially if parents are footing the bills. Let's call it the "paradox of spending": The less they earn, the more they spend.

Many middle-class millennials may be living be home but they still have certain essential needs: beauty upkeep, healthy diets, regular exercise, socializing, entertainment, travel, and tech support. (Before we criticize the kids for acting entitled, let's remember who raised them this way: Baby Boomer parents.)

What does it really cost to have a boomerang kid? Let's examine some of those necessities: Young women seemingly require weekly manicures and pedicures. If in the spirit of togetherness, your daughter joins you at the nail salon, who do you think is going to pay, and likely for the $40 "spa" pedicure, not the no-frills $20 treatment? Then there's the hair; she must hide those roots or keep the highlights shining with monthy trips to the hairdresser. Of course, she could go to the drugstore and buy a $10 do-it-yourself kit but do you really want that mess all over the bathroom? Food? These boomerang kids are probably the only young people in America not devouring Big Macs. They require organic produce, Greek yogurt, and chicken farmed cruelty-free. If your child is vegan, double the food bill. So far as exercise, while they may jog around the local park, what happens when the cold weather sets in? That requires a gym membership.

Now that they've graduated, the millennials miss their college friends terribly, especially during the traumatic first year when they're getting used to life without afternoon naps. That means gas money, a bus ticket or airfare for mini-reunions with former dorm mates (and to get them out of your sight for a few days). Of course, so far as entertainment, they expect all 900 cable channels, so forget cutting costs with basic cable. "Hey mom, what happened to ESPN 6?" You'll need up upgrade Netflix to two DVDs at a time as well as on-demand.

So far as travel do you really intend to head South over the holidays without an entourage of adult children? A friend from the gym mentioned her husband had been looking forward to time alone on their holiday vacation, now that their empty nest was full again. He was aghast to learn his wife booked passage on their cruise for two adult daughters "What was I going to do?" the mom said with a shrug. "Leave them home?"

Let's not even talk about the iPhone. The only way to get rid of it is to surgically remove it from their hand, not an option, so that monthly tab keeps coming in. Of course, in house, high-speed Internet and wireless go without saying.

With a little luck, the economy will revive and our adult children will land good jobs and move out. But as any parent who has ever helped set up a first apartment knows too well that does not bring any financial relief. Remember the "stuff" bought for the off-campus housing that you assumed could be recycled. Forget it. A young professional apartment needs to be sleek and sophisticated, reflecting their new station in life, and filled with nice stuff like a good couch, coordinated bedding, and designer pots and pans (although they will never be used; no one under 30 cooks at home). Start hoarding those Bed, Bath and Beyond discount coupons now. You're going to need them.

 

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JIll26
snarky, independent boomer
02:48 PM on 11/22/2011
There is not a one of you who needs to justify your living arrangements to anyone else. If your family wants to pile into one house, that's only you and your family's business. If you want to move to different countries and never speak again, also....your business. Some families are close and supportive of one another. Others, not so much. There are reasons beyond the economy people want to share a home. Perhaps our current financial climate is allowing people to start doing what they want with their lives rather than live by this invisible set of social rules made up by whom exactly? As long as everyone contributes the best they can, respects one another and most of all...are happy...who cares what anyone else thinks?
02:25 PM on 11/22/2011
I am 26 years old, I have never been to a nail salon, I get my hair cut and colored at the beauty school down the road and the only reason I get it colored at all is because I have more gray hairs than brown thanks in part to genes. I borrowed $10,000 form my parents for a down payment on a house and have paid almost all of it back but otherwise I have never asked for anything from them. I have worked almost full time or full time since I was 16, finished 2 bachelor's degrees in 4 years and worked the whole time I was in college, sometimes 2 or 3 jobs. I have seen multiple articles on how lazy my generation is and how we are entitles, I would for once like to see an article about those of us who do work hard to get what we have.
JIll26
snarky, independent boomer
02:59 PM on 11/22/2011
Rachel, I am twice your age. Don't wait until you are middle age, like I did, to quit caring about the opinions formed from social laws no one can define or explain except to say "well, it just is", or worse yet "you just should...". Most of these social rules don't make sense but there will always be people who don't think for themselves and prefer to give authority to others. Most of all, realize writers, reporters and commentators are paid to yap. They have to make big things out of little things in order to make up things to get paid to yap about. You know you are doing fine right now and are blessed to have family that will have your back when a times comes you aren't doing so fine. That's all that matters.
02:24 PM on 11/22/2011
iPhones? Weekly mani/pedis? 900 cable channels? NECESSITIES for my generation?

I'm 23, moved out of my parents' home over a year ago, and now rent a house with five other roommates. We save money on rent and utilities, and can even pay for wifi and cable (which we watch on an old, hand-me-down TV) since we split the bills 6 ways. We exercise, throughout the year, even in the Northeast, in old-fashioned ways: running outside (just bundle up when the weather's cold), playing sports with friends, doing Zumba at home with a video, etc. We cook most of our own food at home (using dishes that are primarily hand-me-downs or yard sale purchases), and I clip coupons and shop the grocery store sales just like my mother does.

I get my hair cut just twice a year, primarily shop for clothing at consignment shops, and have never been to a nail salon or worn makeup. I use a prepaid cell phone, and chat with loved ones for free on Skype. When I travel to visit family or friends, I take the bus - and always pay for my own fare. I have paid all of my own bills and expenses ever since moving out of my parents' home.

Maybe my roommates (all of whom have been paying their own bills for years) and I are unusual, but this article diverged so widely from my experience that I genuinely hope that Ms. Quigley is being sarcastic.
12:56 PM on 11/22/2011
I am an adult daughter who is living with my parents (who together earn almost $200K a year - so upper middle class) after graduating with an engineering degree, and this could not be more untrue. I have never had a manicure, pedicure, and I rarely even have my hair cut (for $10). I would never ask for special food for myself, as I eat what everyone else does. I would never ask for any of the things that the article mentions - if I so much as buy a candy bar for myself I have to pay for it with money I have saved. While I still travel with my family, I wouldn't think to ask for money to travel to visit friends. Both my sister and I have phones that cost nothing with my family's standard phone plan (just calls and minimal texting). While my parents bought furniture for an apartment, I will need to pay them back for it at full cost when I do move out.

In addition, I work around the house - the cleaning, help with laundry, feed our pets, make dinner every night, do the weekly grocery shopping, do dishes, and generally help whenever I am needed.

Pretty much the author could not have been more wrong! If there are parents out there that do all that for their kids, they brought it on themselves and need to tell their kids to start working minimum wage if they want all those extras!
01:42 PM on 11/22/2011
I agree with you completely, LIZ. I'm another sad sack living at home, but the family doesn't have anywhere close to the 200 grand a year coming in. I'm literally here just to keep a roof over my head. I don't demand designer clothing or food or furniture. I haven't splurged on new anything--even at a WalMart--in about three years. I've been doing just about all of the household chores...right down to learning how to install dry wall by my lonesome. Yeah...we're sooooo spoiled, aren't we?
02:04 PM on 11/22/2011
I was actually thinking about the idea that the author didn't mention clothes, especially since she was focusing on daughters, but definitely agree about not getting designer clothes - heck I walk around in jeans that have holes in them because I have had them so long (& they were $20) and there are people out there who spend $100 for a pair of "new" ripped jeans for their kids. I haven't had to learn how to install dry wall quite yet, but I have had to learn how to do a drop ceiling and cutting moulding do go around doors in a room that my family is renovating. I'm just glad that where I am we are in between the seasons where I had to mow the lawn (by push mower) every 5 days and where I have to shovel.
02:38 PM on 11/22/2011
I hope you all are actually the norm...but from my personal experience and those of my friends, it sounds unlikely. While I made it clear my daughter would pay for her own food and incidentals (icncluding cleaning supplies for the almost self-contained apartment-like basement area she and her daughter moved into - I found her little by little spending more and more on herself. My electric alone went up by $100 per month). She was receiving child support and more money per week in unemployment than most people receive working full time jobs. Instead of putting that away for a cushion when unemployment ran out, she bought several high end items...including 2 sessions of what will eventually be a tattoo "sleeve." the whole situation has severly fractured our relationship....and it was my idea to bring her home to help her out! and forget about chores..we got the heavy sigh just asking her to take the trash out once a week...
12:00 PM on 11/22/2011
My sister finally graduated at age 25 with a degree in theatre production from a school with a small, not very great program. She tried to demand a huge graduation celebration, but instead got a nice dinner with the family. Since her graduation a year ago, she has been sitting on her ass, painting pictures, writing a play, writing songs, and starting two "businesses" which actually means just creating 2 LLCs before she even has a product or anything. She is simply "too busy" to get a job, and doesn't understand why everybody around her (including her 12 year old brother!) are telling her to grow up and find employment. She's vegan, too...so that doesn't help anything. I really don't understand how people can be okay with being leeches their entire lives.
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01:27 PM on 11/22/2011
My sister is getting her degree in animation and I have voiced my opinion about how worthless I think it is. But that can't stop her. She just ignores everyone. Unlike me who is constantly worried about my future. My mother is spending over $40,000 or maybe more on her bachelors degree in animation. (I'm probably more of a leech than her, but I had a really bad bump in the road back in September.) But my sister doesn't demand huge celebrations and isn't really spoiled. I'm just getting my associates degree in funeral services. It's really cheap with the school I'm going to... Compared to the one I planned on going to before the incident back in September. It's weird, I was the vegan for 3 years in my family and I got yelled at by my sister for eating bread once.
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phdpamela
Make it a great day!
01:34 PM on 11/22/2011
Well, when your sister announced her major to your parents, they should have had a nice chat with her about the future. From the sounds of the rest of your post, your parents don't seem to mind her oblivious behaviors. Hang in there. I know you and your brother hate having to "share" again with the one who was supposed to be GONE. But things happen, and just make sure you don't follow her pattern. Go to school and get a degree in something you know will provide you a could income in any economic crisis. Hint: medical field
11:03 AM on 11/22/2011
Apparently "middle class millennial­s" are money sucking kids. Are you one of these parents who gives their son/daughter whatever they want? I've learned to spend money responsibly and live within my means. I've been taught to not expect things to be handed to me or go out for weekly nail and hair appointments. I pay ALL of my own bills. Health insurance, car insurance, phone, rent, you name it. Because MY parents taught me to be responsible. This article implies that all college grads expect parents to pay for their life and expensive habits. I'm sorry, but almost all graduates i know, including myself, pay their own way. They don't expect royal treatment at the cost of their parents.
Honestly... the author of this article doesn't seem to have spent a lot of time with "Middle class millennial­s"
10:51 AM on 11/22/2011
We do what we are able and willing to do. Both our kids moved back home for short periods, well, one was here for sixteen months for part of her Masters ed. and moved out when she was accepted for doctoral program. I'm grateful we were able to do it. Our parents graduated from high school at the height of the great depression, and lived with my grandparents for a period of time. Everyone has different situations. I believe this generation of young people, children and grandchildren of baby boomers are the most respectful, giving, fun-loving and ethical group as a whole to come down the pike for awhile. All of us were self-serving teenagers as part of our growth. I say cut them some slack and say no appropriately.
01:04 PM on 11/22/2011
Marga, that's great that you helped your children and you're correct in saying that there are different situations, especially in these economic times. I also had to return home until I got on my feet but had to pay for all the extras. The point is they are taking advantage if they are asking for all these things and the parents are not doing them any favors by giving it to them. Yes, we were once all teens at some point, but your teens end on your 20th birthday. Everyone needs help, and some more than others but you have to stop at the NEEDS.
10:47 AM on 11/22/2011
Wow, do these people really expect to receive all that?
10:26 AM on 11/22/2011
Middle class millennials? What sort of absurd hip hop trendo speak nonsense is that? Middle class millennials?
10:15 AM on 11/22/2011
How about these parents say "NO." If you need mani/pedis, hair dye, spas, gyms, cable, Netflix and cell phones, then let them pay for it. Those are NOT NEEDS. Stop coddling these kids and maybe they'll finally grow up and be responsible. Teach them how to budget and live within their means. Things are tough for almost everyone and those "poor little babies" shouldn't be shielded from that. I'm not saying to throw them out but they should be given a 6 months to a year after graduation to save. Once they've moved out, an occasional home cooked meal or gift for their new apartment is fine. Maybe even a small loan. I only hope that these self-entitled kids are as generous with their money, homes and time when their parents need their help after retirement, since they've spent what could have been going to their retirement funds!
09:28 AM on 11/22/2011
I am lucky enough to have all my children hopefully happily married, but you are right on with this article. You are also correct when you say we raised them this way. Someone who is honest!
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dancerctry
I love Gardening and Decorating
08:59 AM on 11/22/2011
In my experience, that situation isn't accurate. In my case, I got married 10 month after graduating. I might need their help with necessities like my son's mattress but nothing extravagant. Thanks to IM and Email I stayed in contact with friends for free. I don't wear makeup or dye my hair so my once annual haircut is it. I don't have a smartphone. Those things might be nice but aren't necessary.

As for my younger brother, he still lives there but at 27 has applied for an appartment. Anything extra he has wanted like a smartphone, he has had to pay for. He was unemployed for a very long time (works now) but during that time he still didn't ask them to pay for anything unnecessary. He kept the requests to necessities like food and none of us like organic so it's the least expensive healthy you can get.

Those parents should set limits on what they are willing to pay for. Necessity like food: fine but if you only eat organic then you are buying. Spa treatments: I'll give you $50 for a haircut anything else is on you. Only reasonable requests should be met.

Keep in mind that most of these parents are excessively critical so while mom is paying for that spa treatment she is telling her daughter how disappointed she is about the daughter's (insert here) It's hard to be angry at a parent you would normally avoid if they are treating you so well.
02:47 PM on 11/22/2011
50 dollars for a haircut ? Can you adopt me ? lol.
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dancerctry
I love Gardening and Decorating
03:00 PM on 11/22/2011
It's northern NJ so that's average to cheap in my area.
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dancerctry
I love Gardening and Decorating
03:01 PM on 11/22/2011
I only go once a year.
08:44 AM on 11/22/2011
I moved back home and ended up staying too long. Because I was home I made some dumb financial decisions so when a huge meaningless fight drove me to move out (I was in the process of getting married and the plan was to save for a house) I made more financial screw ups. I think if I moved out as soon as I got a job rather than sticking around and "not" saving money I would have made my stupid mistakes sooner and smaller.
I love my mother but she sure did and still does indulge my poor financial senses. (Currently saving to repair my bathroom and over the weekend decided she should just redo the entire thing and I can pay her later) Finally grown up enough to tell her no, I'd get it fixed when I saved up the money to do what I wanted.
I love that she spoils me but I have my own child and cannot pass this chaotic financial sense on to him.
09:56 AM on 11/22/2011
learning with overindulgent helicopter permissive parents is four times as hard as just jumping into the water and swimming on your own.
01:05 PM on 11/22/2011
I hate the idea of "blaming" her, or sounding ungrateful but it really hits my self esteem to always feel like the family charity case.
My husband and I make good money and should be able to take care of myself and my family.
JIll26
snarky, independent boomer
08:04 AM on 11/22/2011
My son and his family are living with us but they pay rent. Far less than if they had their own place but the arrangement is great for all of us. We have four generations living under one roof. With the rent money I get I was able to save up enough for a dishwasher and TV, something unaffordable before. We all have our own space and eat very well. Having children around sure brings life into this previously empty house. Eventually they'll get out on their own but until then, having to live together has been good for all of us.
09:57 AM on 11/22/2011
how incrediably self centered and gratuitously ignorant....the kids are not about entertaining you....nor paying for your appliances....learn to love an empty house, and let them become independent on their own...otherwise, you are a TAKER, not a giver.
JIll26
snarky, independent boomer
12:09 PM on 11/22/2011
don't be ridiculous! I get $300 a month in rent from this family of 3 1/2 and my husband and I have given up all but a small den and our bedroom over to them. They are thrilled to be living so well for so little and having built-in babysitters and...pulling some measure of financial weight so they don't feel like leeches. The DO work afterall. If I want to put in a dishwasher and buy a television with that money, so what? They use them! I was demonstrating a benefit to having the kids pile back in on us because there are days it's a challenge. I did enjoy the 10 quiet years we had here and I look forward to them again. In the meantime, we're making the best of these difficult times.
07:15 AM on 11/22/2011
Living it, but what choice is there given the economy? At least he is working, paying his colloege loan, contributing to the cell phone bill, and saving a little (and I mean a little). Sign of hope? NAH!
09:58 AM on 11/22/2011
what choice.....working three menial jobs until the economy recovers...paying your own total way in life and doing without the cell phone....sheeeeeeesh....cell phones and TV are not necessities in life....neither is air conditioning and workout centers.
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11:02 AM on 11/22/2011
i dont know where you live but for me air conditioning in the summer is definately a necessity..id rather be without tv/internet than air conditioning