If there is ever chatter about how Americans are racking up the credit card debt or not having much in savings, it is probably true, as they love to spend. There are four areas that get extra spending attention that could probably be scaled back a bit.
Weddings
The cost of weddings continue to rise to give, whether it is having a little extra money to spend as the economy has recovered, or that a huge dream wedding is in order, Americans are spending over an average of $26,000 for one night of bliss. Those brides must be watching “Say Yes to the Dress” as well, as the average wedding dress is over $1,200.
Rent
The American dream used to be buying a house right when you finish college and get your first “real” job. Those that was old enough to live through the most recent economic crash, whether it was seeing parents suffer losses, or not wanting to be stuck in that situation of possibly being under water, seem to lean towards renting over purchasing. If you do decide that renting is for you, think about the money that is being thrown away each month, with no return on investment or a tax deduction.
Student Loans
With the cost of college in general, not to mention the cost of textbooks, and add room and board into that, and there is a reason why a recent graduate is entering the workforce with an average of over $37,000 in student debt. That is only figuring a four-year degree, so add in further education or even worse, medical school, you may never be able to pay off student loans until you are about to enter retirement.
Cars
It is not a myth that a car depreciates the second you drive it off from the lot, so why would you want to purchase a new car. With loan terms being five or even six years to keep payments somewhat reasonable, that is also assuming that you will not be tired of the car even if it escapes the loan without having any major repairs. I have learned my lesson and will never buy a car again. For a few hundred dollars a month, lease, and you can get a new car every two or three years, never having to repair except normal oil changes and tire rotations.
Love this article. People do overspend a lot on these things and I can see why. Weddings: A beautiful wedding is a must and costs (for some things) are seen as necessary. Rent: Getting your first place as soon as you hit 18 is cool, and for some it shows that the have grown up. Student loans: People still believe in the value of education and a college degree is an achievement.