Posted By:
David SmithJeff L,
Nice thought but I don't believe that is true these days. The parents you are thinking about are the ones from the World War 11 generation and earlier. Those folks worked hard and sacrificed for the good of the country and their children's future. I don't see that type of sacrifice in a lot of today's parents.
Look at the people who caused the Enron collapse. They were wealthy (compared to a "normal" person) and I imagine they had children, yet they continued to do illegal activities until they were caught. Enron collapsed and when it did thousands of people were harmed.
On an every day, "normal" person level, people drive SUV's when they could just as easily drive smaller, less expensive autos that get better gas mileage. The difference in price between the SUV and smaller car could be used to pay down debt, add to a retirement account or start a college fund. Then there is also the difference in auto insurance and money saved in annual gasoline consumption not to mention the environmental impact aspect.
Another example would be Starbucks coffee. Why pay $4 or $5 dollars for a cup when regular coffee is much cheaper?? I am sure the difference in cost could be used by most people to shore up their financial status but it isn't. This is especially true if people pay for their Starbucks with credit cards. (I don't drink coffee and so don't see the big deal with Starbucks. I also don't know if Starbucks even accepts credit cards but I imagine with prices as high as they are that Starbucks would).
Just think, replacing a $4 dollar cup of Starbucks coffee once a week with a cup of $2 dollar "regular" coffee. If you did that one simple act for 15 years and took that $2 dollar difference and invested it in a mutual fund, by the time your child was 18, you would have enough to pay for a year of college at a state university and the "sacrifice" wouldn't be that great.
David