In a recent article from USA Today entitled Generation Y’s Steep Financial Hurdles: Huge Debt, No Savings, Christine Dugas writes:

Even before the recession, those in Generation Y — the latest products of a get-it-now, pay-for-it-later mind-set that has permeated the nation’s economy — faced a range of financial pitfalls as they embraced expensive high-tech gadgets and added credit card debt onto student loans.

Later in the article, she writes:

Kristen Ammerman, 21, a senior at Michigan State University, faces such challenges and sees her Gen Y classmates struggling with financial issues — while seemingly oblivious to the potential consequences.

“I work at a part-time job, have incredible debt and get food stamps,” she says. “I’m still short on rent every month. … My friends all want the newest and best things. They spend money on them any chance they get.”

So let me get this straight, Kristen:  You and your friends feel that it is OK to go on welfare in the form of food stamps and be behind on your rent, yet you spend money (that you don’t have) on the newest and best things?  When will you and your friends wake up and learn a simple concept like live on less than you make?  If you don’t have the money to pay for something in full, in cash, at the time of purchase, then you can not afford it! 

The article goes on to cite some statistics about Generation Y:

Only 58% (of Generation Y) pay monthly bills on time, a National Foundation for Credit Counseling (NFCC) 2010 survey said.

On average, Gen Y’ers each have more than three credit cards, and 20% carry a balance of more than $10,000, according to Fidelity Investments.

60% of workers 20 to 29 years old cashed out their 401(k) retirement plans — typically a big financial no-no because such a move squanders retirement assets and forces the recipient to pay a tax penalty — when they changed or lost jobs, an October study by Hewitt Associates said.

Wake up Generation Y!  You guys are spending like there is no tomorrow.  This sense of entitlement is going to tie you down for years to come.  It is time for you to start learning about personal finance and, more importantly, personal responsibility. Don’t sit back and wait for the government to take care of you, because those days are quickly coming to an end.

Dave Ramsey has often said that he and Jenny Craig will always be in business.  This article is just another reason why I believe him.

According to Blu-ray.com, popular audio/video cable retailer Monoprice has temporarily closed its website until March 15 while it performs “maintenance.” The website doesn’t go into further detail, but it allegedly shuttered after receiving several emails and phone calls from customers complaining about “odd” charges on the credit and debit cards they had used when purchasing from Monoprice. Customers are advised to watch their credit card statements very closely.

Click here to read the official statement from Monoprice.

According to this USA Today article, more consumers are saying no to credit cards.

The article states that people are starting to take the “radical” step of living without credit cards because of rising interest rates and fees.  It is the standard fare that you see in newspapers from time to time.

What I would like to point out, however, are all of the people in the Comments section at the bottom of the page who are posting things like “a credit card is a necessity” and “you must keep a credit card in order to maintain a good FICO score.”  It is sad to see just how “normal” these people are.  “You have to have a credit card…  I pay mine off in full each month…  I make a killing with my air miles…  etc.”

Just remember that “normal” in America is broke.  Normal represents living paycheck to paycheck with $8,000 in credit card debt, 2 car payments, a student loan, and no savings.  If you live “normally”, then you will be broke your entire life.  Who wants to be normal in this culture?

If you are a follower of Dave Ramsey, then your goal should be total weirdness!  Pay cash for your purchases.  If you can’t afford to pay for something in full at the time of purchase, then you can’t afford the item.  Total weirdness is the only way to prosper in this culture of “I want it and I want it now” immaturity.

According to a Dunn & Bradstreet study, people spend 12-18% more when they pay for their purchases with a credit card instead of paying with cash. According to McDonald’s, their average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash.

No wonder Burger King is pushing you to use your VISA card and “Eat like someone else is paying.” Always remember that Cash is King and you won’t fall victim to gimmicks like this.