Friday, November 18, 2011
Another reason not to move back in with Mom and Dad
This article presents the "paradox of thrift" from the standpoint of newly graduated college students moving back in with their parents in order to save money. The article interviews a number of recent grads who, despite having well-paying jobs, have chosen to move back in with their parents and wait to buy their own home until they've saved more money. Seems like a good idea, right? Well, the truth is that an estimated $145,000 of economic output is lost for every new home that isn't built. Construction workers are out of a job and appliances aren't sold, just to name a couple areas where potential economic stimulation goes unrecognized. All in all, this article serves as a reminder that saving in the short-term doesn't always lead to saving in the long-run, especially in this situation that we as college students will all be in very soon.
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This is a very good point. During week 8 when we discussed the issue of "where are you going to be after graduation?" many responses were "I don't know." In this case it would make the most sense to assume that these students will be moving back in with their parents after graduation for at least some amount of time. How typical is this for the rest of America? My guess is, highly typical.
ReplyDeleteit is a tough question to answer because we aren't at that point in our lives yet. when it does come though, i will probably move back in with my parents even if i find a decent job. my sister is doing it now and has a great job. in the next year or so she will move out because she has enough money to do so. i don't think that there is anything wrong with moving back in with your parents after college.
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