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The Money Coach, Lynnette Khalfani-Cox, on the impact on young workers of the economic downturn.
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We've got the unemployment ripple we've got Starbucks we've got debt now that's who is suffering the most in basic -- in this economy suffered.
Young people -- the answer.
Just listen to these numbers well that's.
The Economic Policy Institute reports that entry level wages for male college grads dropped 11% over the past decade.
Wages for female grads dropped by almost 8%.
Joining the company now is the founder of ask the money Coach dot com live next telephonic hawks the -- welcome back to the program and -- what why.
Our young people bearing the brunt of this economy.
They shouldn't be obviously but that's the fact of the matter is that they are.
I think a lot of factors are play here one is certainly economic pressures by companies who feel like they actually can pay of course.
Cheaper wages to young people who they see a very competitive market and they're thinking okay.
These people will be glad to get any job perhaps -- lower benefits package except right so they're sort of downward pressure there.
And also just from a practical sense.
You know if you look at what's happening in the larger economy there's a whole generation of sort of boomerang kids right people who.
Actually did what they were told to do they went to college they got the degree they worked really hard.
And the promise the golden ring that was held out to them that you'll be able to get a good job but that doesn't always happens a lot of them are actually living back home with mom and dad brought.
People -- to your point you know listen bidding on his part part of that you know.
I think this golden -- you're talking about you know before you should be you you would get a gold and watch after fifty years of service I think some of these kids are on realistic about what they should be making straight out of the gate I know gone down occupied so I think -- stuff they were talking about what they were demanding.
You -- you -- you -- ending enjoy the -- you -- -- all they being unrealistic well there's no question that young people.
As a whole tend to over estimate what they're starting salaries will be.
And they tend to under estimate what the.
Costs will be when it comes to all right living on their own -- -- the first generation in a long long time to come out of college and make less not just that they were expecting.
But less than what they would have made ten years earlier their Goves first generation -- that to actually be overburden that many levels with.
Student loan debt with credit card debt a lot of these kids have practically a mortgage -- -- -- -- -- -- I -- to and I'm -- jumping has already wanted to bring this up.
The it -- it the number of people between the ages of twenty and facility.
If it's 40% of that age group is saddled with student debt which averages 23.
Thousand dollars -- us.
I think that is flat out terrible you -- it -- it's horrendous because we've created a generation of.
Essentially indentured servants practically -- -- -- it'll work who do -- do these youngsters make bad decisions going into college.
Or did the colleges entice them with.
Debt with old dreams of the future and a very expensive education I think that there is equal blame to go around first off you look at college pricing trends.
The rate of tuition has gone up about nine -- saying -- annually three times the normal rate of inflation.
And then you do have some families some individual that the students themselves.
Or saying I'll do anything to get into Harvard Yale Stanford wherever and they'll pay they'll take out loans that wasn't the -- tap out their 401K plans.
The home equity except Iraq.
And then it's again what -- promise that they'll get a pay off and it always doesn't work out that way obviously the net thank you very much indeed for joining us I'm cutting you off but I'm not -- -- want.
Ten seconds from you.
You got it.
Parents are out of works unfortunately kids have no choice but to -- the -- and there are a lot of students these days they're actually taking on part time jobs to help.
At home so I think we're seeing both sides with these -- college is a lousy deal said it wants us that again does that mean -- -- his opinion on an action than that is college a lousy deal.
I don't think it is I think it's still very good for you a certain labels are allowed but you have all of his remarks about your -- costs of future.
Alienated all the art history -- explore them both up about but the but I'm Mike I don't think that -- and that I felt that it was a very.
