Good Morning DINKS. Today we are discussing our Class Status. I am almost embarrassed to bring this up because I don’t personally feel that people should brag about their money or wealth, and I definitely don’t think that people should compare their riches with the riches (or lack of riches) of other people. But, I don’t rule the world and unfortunately we do live in Society (and Economy) that is divided into Classes. I personally feel that the more we try to differentiate ourselves from other people the more conflict will arise. Conflict creates hostility, resentment, and jealousy; which are usually not very good in any type of relationship. But, like I said, I don’t rule the world.
There was an article recently posted on CNN Money that discussed the impact of our recent economy on the Middle Class. CNN gave some astonishing facts about the Middle Class which I will definitely share with you, but first let me ask you one question…
Do you care about your Economic Class?
Now let me share some Economic facts with you. The recent economy over the last few years has hit the Middle Class very hard. University graduates are staying at home longer; the percentage of people aged 25-34 rose from 11.8% in 2007 to 14.2% in 2011. What does this mean for the Economy? It means that less people are buying their own homes because they are choosing to stay at home with their parents. Some people (such as myself) chose not to buy a home because they love the no responsibility and carefree life of a renter. I am not sure if I will ever buy a home and that could hurt the economy (not my individual decision, but the general mindset).
The average Middle Class income dropped to $49,445, which is the lowest it has been in 15 years. The prices for gas and food are rising, but the average Middle Class income is falling. What does this mean for the Economy? It means that people have less money to spend, and if consumers aren’t spending money the Economy can’t grow. When the average Middle Class salary drops it means that more people (such as Myself) may now find themselves classed as (Middle to) Upper Class. This is not good because the gap between Lower and Upper Class is widening and eventually the Middle Class could be eliminated. As the Economic Classes are separated more and more conflict will arise; the rich will become richer and the poor will become poorer. Would you really want to live in an Economy where the Middle Class didn’t exist?
The cost of a College Education is also rising. If I was in college today I would have to ask myself if the price of my college education is really worth the cost. Usually a College Degree and a Masters Degree would be a hot commodity for employers; but with so many people currently searching for jobs experience could outweigh an education and a College Degree. I am not sure if it is a smart financial idea to attend college and accumulate student debt if our current Economy can’t guarantee us a job and our salary can’t guarantee us the ability to repay our loans.
Now that you have all the facts and you have my opinion on the subject, let me ask you another question…Are you Middle Class?
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Photo by angela7dreams
DINKS (Dual Income No Kids) Finance is a blog discussing personal finance for couples. While by no means financial experts, we own a variety of assets including real estate and stocks. We've both been up to our eyeballs in debt and have made tons of financial mistakes. However, we've both successfully retired that debt and we both do learn from our failings. We hope that our voice in this blog can help others in achieving their goals!
{ 5 comments… read them below or add one }
My wife and I both do very good for ourselves. We have recently climbed out of a major debt exciding 10 thousand dollars. After going through this we realized that our lifestyle needed to change. Since then we have chosen to make major changes in our lives when it comes to our finances. In the end people think we are flat broke and cannot do anything. The truth is we have chosen to just say NO. This attitude has kept us happy with simple things that we do together and more money in our pockets. To answer the question above I think the government will never know how to divide people up unless they are monitoring our bank accounts when doing these stats. “Are they” I believe people are saving more money now that they economy has changed so much and are choosing not spend it.
@M. Gonzales – I couldn’t agree more. Just because my boyfriend Nick and I choose not to spend money doesn’t mean that we are broke. We have definitely learned to live on less and that means buying less of the extras that we don’t really need. We are saving more money and taking nicer vacations…that makes us happy.
I am in the middle class due to my husbands income. I am a RN with a bachelors degree in kinesiology. We recently moved and everywhere I have interviewed they have advised me to go back to school for my masters degree. This is so frustrating! Anyway, we’ve decided to live on less for now…which means NO masters degree at this point! I’m just re-affirming your last point :)
We have sailed through upper middle to lower middle in two short years. We retired. We are happy with the results. Our income has gone to lower middle. Our life style stayed the same. Home bought, $$ in the bank (not market) being stagnant until the next election.
Our children are on the path of upper middle in their mid twenties.
As far as school vs experience? Our son makes less than sil. Our son in law graduated from high school and went into the military. He is highly sought after he got out and just broke into the six figures at the age of 24. No, he is not living in a foreign country. Our son went to an excellent university and is in the higher part of five figures.
Experience counts as long as the economy is down. SIL is planning the degree when the economy turns against him :>) Smart kid!
Plus- both families are well versed in saving their pennies (and traveling).
@Janette – Retirement definitely has a huge impact on our finances. it seems like you have installed good financial value in your kids. Congratulations!!!