Risk Aversion in Young People
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March 28th, 2012 at 4:37:30 PM
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I was listening to a radio show where they said
a college grad is more likely to live at home with
his parents than leave his native city to find a job.
They said college grads are 50% more likely to
stay at home with their parents than they were
30 years ago and wait for the right job opening
in their chosen field where they live.
The professional who was giving the interview
said this is very bad for the grad and for society
in general. If you don't use what you've learned in
college right away, in four years you've forgotten
75% of it. And its bad for society because a lot
of talented young people are averse to taking risks.
They want everything handed to them or at least
guaranteed before they make a move that will
improve their lives. They're also remaining a financial
burden to their parents for years longer than needed
and making it harder for the parents to save for
retirement.
a college grad is more likely to live at home with
his parents than leave his native city to find a job.
They said college grads are 50% more likely to
stay at home with their parents than they were
30 years ago and wait for the right job opening
in their chosen field where they live.
The professional who was giving the interview
said this is very bad for the grad and for society
in general. If you don't use what you've learned in
college right away, in four years you've forgotten
75% of it. And its bad for society because a lot
of talented young people are averse to taking risks.
They want everything handed to them or at least
guaranteed before they make a move that will
improve their lives. They're also remaining a financial
burden to their parents for years longer than needed
and making it harder for the parents to save for
retirement.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 4:42:41 PM
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Why would you post this on a board dedicated to Las Vegas? What's it got to do with Vegas?
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
March 28th, 2012 at 4:46:27 PM
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Bob, what's this thing you call radio?
Seriously, you're right. I talk to my daughter about moving out to Vancouver when she finishes high school, and she says "yeah, me too", and I just roll my eyes. Mind you, my brother lived with my parents until he was in his late 30s.
Parents want the best for their kids. Kids are finishing university on average with a staggering amount of debt (averaging 20K in 2008) and no job. So they stay at home because it is difficult for kids to find work and be able to pay off their loans.
Seriously, you're right. I talk to my daughter about moving out to Vancouver when she finishes high school, and she says "yeah, me too", and I just roll my eyes. Mind you, my brother lived with my parents until he was in his late 30s.
Parents want the best for their kids. Kids are finishing university on average with a staggering amount of debt (averaging 20K in 2008) and no job. So they stay at home because it is difficult for kids to find work and be able to pay off their loans.
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You want the truth! You can't handle the truth!
March 28th, 2012 at 4:50:16 PM
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Quote: thecesspitWhy would you post this on a board dedicated to Las Vegas? What's it got to do with Vegas?
Whats risk aversion got to do with Vegas? If they're afraid to take
risks now, what kind of gamblers will they make later. Gambling
is all about risk taking. The vast amount of regular gamblers in the
US come from the people over 50. Go to any casino and look at
who's playing the slots, its like an AARP convention. Risk takers.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 4:50:53 PM
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deleted
DUHHIIIIIIIII HEARD THAT!
March 28th, 2012 at 4:53:46 PM
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Quote: IbeatyouracesThe same thing somebodys weight loss has to do with Vegas, absotively nothing.
Indeed.
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
March 28th, 2012 at 4:54:07 PM
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Quote: boymimboSo they stay at home because it is difficult for kids to find work and be able to pay off their loans.
Its difficult to find jobs because 50% of them
aren't willing to move where the jobs are. One
point was made about all the well paying jobs
available in N Dakota right now. They're begging
for qualified people but nobody wants to live
in N Dakota.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 4:58:38 PM
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I would say that it's difficult to find jobs because of the majors that people choose. My school (within 6 months of graduation) has a 99% job placement for accounting majors, 98% for finance majors, 93% for marketing majors, and a 64% for liberal studies majors. Amen.
March 28th, 2012 at 5:18:08 PM
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What is the average annual housing costs for a 22-year-old living alone? I'm guessing $10 000. Sounds like a pretty smart trade-off
March 28th, 2012 at 5:22:45 PM
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Quote: winmonkeyspit3I would say that it's difficult to find jobs because of the majors that people choose. My school (within 6 months of graduation) has a 99% job placement for accounting majors, 98% for finance majors, 93% for marketing majors, and a 64% for liberal studies majors. Amen.
My girlfriend and I joke that subsidized federal loans should only be available for actual marketable college majors. Not likely to happen, but it's worth a good laugh. Insert all of the jokes about English majors here... (would like fries with that, etc.).
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
March 28th, 2012 at 5:23:56 PM
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Quote: TomGWhat is the average annual housing costs for a 22-year-old living alone? I'm guessing $10 000. Sounds like a pretty smart trade-off
The average cost would be an almost worthless figure because it varies so dramatically by location. A US map with colored regions would be pretty informative though.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
March 28th, 2012 at 5:47:05 PM
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A couple of the worst majors now are journalism and law.
Most law students who become lawyers never find a job
as a lawyer. The field is so glutted that there are several
class action suits suing law schools for not telling their
students the odds of getting a job are less than zero.
Most law students who become lawyers never find a job
as a lawyer. The field is so glutted that there are several
class action suits suing law schools for not telling their
students the odds of getting a job are less than zero.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 5:50:32 PM
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Law "major" here. Funny enough, my previous career was journalism, and now I am in law. Law school is NOT a guaranteed path to a job. That said, it is by no means the "worst" major. You still have a marketable skill, it is just harder to market. The economy will rebound and people will need lawyers again. That said, I wish I had gone into commercial refrigeration repair :(Quote: EvenBobA couple of the worst majors now are journalism and law.
Most law students who become lawyers never find a job
as a lawyer. The field is so glutted that there are several
class action suits suing law schools for not telling their
students the odds of getting a job are less than zero.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
March 28th, 2012 at 5:57:48 PM
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Quote: teddysLaw "major" here. Funny enough, my previous career was journalism, and now I am in law. Law school is NOT a guaranteed path to a job. That said, it is by no means the "worst" major. :(
Its only a bad major if you hope to go into
law. Its a great major on your resume for
getting into lots of other professions.
I was reading a lawyer blog of a guy who
has his own practice. He says not only do
you have to win the case, you have to get
paid. He says for 25 years his life has been
feast and famine. He either has money to
burn or is in debt up to his eyeballs. Its a very
stressful life.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 6:31:38 PM
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I was in this same situation. It is not that we don't want to move out, it is finding a job that pays a living wage (and just a basic low standard of living) is VERY hard. It is part of the reason why I moved to Las Vegas. I could not find any jobs in the San Francisco area where my paycheck could cover anything over my rent. Here I am averaging $3200 a month (combined with my spouses meager $1000 a month income) with $500 rent it leaves extra to cover the utility bills and food. I will have all my credit card debt (mostly spent on stupid purchases) paid off by July and my federal student loan paid off by the end of the year. That will just leave me with my hefty private student loan that my dad is helping me pay. I never expected to be handed a job, I don't mind working to get it but just getting the foot in the door is very hard.
March 28th, 2012 at 6:39:05 PM
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Quote: EvenBob
Most law students who become lawyers never find a job
as a lawyer. The field is so glutted that there are several
class action suits suing law schools for not telling their
students the odds of getting a job are less than zero.
B.S.
I mean, complete, abject B.S.
I don't mean about the lawsuit: I mean about inability to find satisfying work.
"What, me worry?"
March 28th, 2012 at 6:39:53 PM
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Quote: NicksGamingStuffIt is part of the reason why I moved to Las Vegas.
You were willing to move where a job was, 50% are not
going to do that. I moved when I was young, my two
oldest kids live hundreds of miles away. You have to go
and find life, it usually doesn't come looking for you.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 6:47:51 PM
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Quote: EvenBobYou have to go and find life, it usually doesn't come looking for you.
Absolutely. And having money makes it a lot easier. The alternative is to move away without any savings, end up in debt and move back in with your parents when you're 32 instead of 22
March 28th, 2012 at 6:52:07 PM
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Quote: TomGAbsolutely. And having money makes it a lot easier. The alternative is to move away without any savings, end up in debt and move back in with your parents when you're 32 instead of 22
Or not. Its a gamble. You just made the point I
originally made, 50% don't want to move without
a guarantee they'll make it. Life has no such
guarantee, where did they get the idea that there
was one.
"It's not called gambling if the math is on your side."
March 28th, 2012 at 7:14:22 PM
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Any references for the 50%?
It's not a matter of risk vs guarantee, it's a matter of when the time is right, where every person has a unique situation
I know plenty people who moved away from their parents when they were teenagers. For myself, I lived with my parents for four years of college and another six months after graduating. Then moved to the other side of the country for a very good job. Then moved back in with them less than a year later for another six months. Then moved out before I had another job. Then a few years later moved back into my parents house for a year
Stories like that might make some people think there was too much gambling with life choices. Really it was just a matter of trying to decide which gambles were the correct ones. While the payoffs were different than the expected outcomes, they were the gambles that best fit my life. That's what almost every single one of us do, even if they are different than the gambles you think they should be taking
It's not a matter of risk vs guarantee, it's a matter of when the time is right, where every person has a unique situation
I know plenty people who moved away from their parents when they were teenagers. For myself, I lived with my parents for four years of college and another six months after graduating. Then moved to the other side of the country for a very good job. Then moved back in with them less than a year later for another six months. Then moved out before I had another job. Then a few years later moved back into my parents house for a year
Stories like that might make some people think there was too much gambling with life choices. Really it was just a matter of trying to decide which gambles were the correct ones. While the payoffs were different than the expected outcomes, they were the gambles that best fit my life. That's what almost every single one of us do, even if they are different than the gambles you think they should be taking
