Why do American Students seem to be broke all the time.

Discussion in 'Random Thoughts' started by Rotijon, Jan 30, 2017.

  1. Rotijon

    Rotijon Friend

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    As above, serious question.

    The currency in my country trades at RM4.5 to USD 1, and you can really see it in the average GDP 10K USD in malaysia and 53K USD in the US.

    In terms of food, drinks, rent, and education cost, its about the same on a dollar for dollar basis. But when it comes to luxuries, ie audio equipment, handphones , tv's. On a dollar for dollar basis, they cost 4.5 times more. And yet the middle class here seem to splurge quite a bit on these items, and audio equipment. Quite a few, of the people here use M50X's out which is the equivalent of someone wearing HD800 to go shopping. The top of the line Noble, UE stuff seem to sell quite well as well.

    The majority of students don't seem broke, especially the ones who are working part time.

    I guess what im wondering is this, most "WTS" audiophile threads in my country, say they are doing it either to upgrade or to hive down the collection, while many "WTS" threads in the US seem to be people having to sell as they are broke. and this is despite things being 4.5 times cheaper on a dollar for dollar basis.

    So what kind of expenses do you guys have that result in students being more broke than 3rd world country students? Or are american students just exponentially worse at managing money?

    The main additional expense i see is Insurance and possible student loans( dont you guys only start paying when you start working?)
     
    Last edited: Jan 31, 2017
  2. TheIceman93

    TheIceman93 El pato-zorro

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    Do a lot of students in Malaysia have student loans? College in the US is crazy expensive and many students don't think about post graduation job prospects. Not a lot of opportunities for English lit majors.
     
  3. kapanak

    kapanak Canucklehead - Friend

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    First of all, your argument is fundamentally flawed when you claim the cost of food, drinks, rent, education, etc is the same dollar for dollar.

    Do you know the average cost of college in the US? Community colleges usually cost anywhere from $2-5K per semester, and State universities cost start at about $10-15K per year. Ivy League schools and other private universities can be anywhere from $40K a year to $150K a year. And that's just the cost of education.

    Also, in Malaysia, I am fairly certain that students do not pay for school out of their own pockets. Most families cover the cost of education.

    Also, this: http://www.nonprofitcollegesonline.com/global-tuition/

    And then, according to this https://www.studymalaysia.com/educa...ving-for-an-international-student-in-malaysia the full cost of an INTERNATIONAL student studying in Malaysia is about $6000-$12000. I am certain it is much cheaper for locals. That amount of money would barely cover a semester of study at a state university in the US. Add to that personal costs, such as entertainment, telecommunication, commute, housing, clothing, books, medical expenses, etc etc etc. and you might start seeing why US students are broke.

    And as already mentioned above, they all borrow money to pay for this, which leads to a long life of debt :)
     
  4. Pyruvate

    Pyruvate Friend

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    That feel when your debt = a 2 channel setup recommended by stereophile
     
  5. GoodEnoughGear

    GoodEnoughGear Evil Dr. Shultz‎

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    I don't know if it is related, but coming back to South Africa after living in the U.S. (Los Angeles) for 17 years, I noticed that people spend excessive amounts of money (IMO) on certain luxury goods categories here. Cars are literally twice as expensive as the U.S., yet you will see young people driving Golf GTIs, obviously up to their eyeballs in debt to do so. BMW's in neighborhoods which are not upscale per se. Folks rocking tha latest iPhones. My wife was amazed when we visited L.A. at how there were so few BMW/Mercedes etc. cars on the road versus S.A.

    I can't really explain it, but it is a thing.
     
  6. Stuff Jones

    Stuff Jones Friend

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    It's much easier to live cheaply as a student and save for a splurge in India than in the US.

    You can have lunch for 50 cents there. Here in the US 6 dollars is the minimum. That just one example.
     
  7. TRex

    TRex Almost "Made"

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    Are you comparing:
    1. American students in MAS vs Malaysian students in MAS, or
    2. American students in the US vs Malaysian students in the US, or
    3. American students in the US vs Malaysian students in MAS, or
    4. American students in MAS vs Malaysian students in the US?

    Education cost for in-state students is very cheap compared to out-state students (example, you came to CA from WA to attend an university). Living cost varies greatly based on location, but I think income:living cost of the US and MAS isn't much different.

    If we're comparing #3 (and in-state student, and earn income), I think the cause is consumerism. Consumerism and materialism is part of culture in US big cities. I live in Silicon Valley, and it's very obvious. New iPhone? Yes. New Airpods? You'll see people with them on day one. Tesla? Not common but you'll see them every other day. Luxury cars? Everyday. Dyson products? Sure. And the list goes on...

    That said, there are too many variables to do apple vs apple comparison.

    Oh, and without insurance, you'd go broke in no time in the US. The medical cost is exorbitant compared to living or even accommodation costs.
     
  8. Poleepkwa

    Poleepkwa Friend

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    And some really nice trainers!
     
  9. Psalmanazar

    Psalmanazar Most improved member; A+

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    Lower and working class people in western states attempt to educate themselves in hope of not wading around in rice paddies for life.
     
  10. Rotijon

    Rotijon Friend

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    The government provide loans, and if im honest, the monthly commitments ain't that bad. How bad is the student loans in america?
     
  11. Psalmanazar

    Psalmanazar Most improved member; A+

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    They follow you after death.
     
  12. Rotijon

    Rotijon Friend

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    We need to look on a dollar for dollar basis. Lets not bother with top US, UK, AUS colleges. Only the rich Malaysians go there, or you have a full ride scholarship.

    Most 4 degree courses here, cost 80-120k on a dollar for dollar basis. But we can get very nice government loans for them, and its not that bad. You can go cheap or you can go expensive.

    If you go to the horrible government universities, your tuition will be less than half that, but only the top ones are good, and you are unlikely to ever get in those.

    One of the main cost drivers i see is insurance, your insurance is damn bloody expensive, our car insurance (for a normal car) is more like 500-1000 a year (Dollar for dollar basis), while personal insurance is like 1k a year as well.

    In the US, my friends say their insurance cost can hit 500 a month!
     
    Last edited: Jan 31, 2017
  13. Priidik

    Priidik MOT: Estelon

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    I was thinking the same thing a while back.
    Here in eastern EU, previous state(s) of USSR the picture is quite different as well. Streets are flooded by expensive lame ass looking luxury cars (BMW X6, Audi Q7, 7 series etc etc), people build houses that they struggle to heat in winter months and big shopping centers continue to emerge and expand. All that for 1M of population that on average has 1/4 of income vs northern and far western neighbors (skip Poland).
    Things like we have weird tax system, no car, gas or road taxes, but almost half of paycheck still goes away. Education is free if one has enough guts and enthusiasm. Appartment rent is low, but food is still as expensive as anywhere else. Tax officials and politicians seem to be incapable of filtering 'big fish' in the business relative to some other more advanced cultures.
    Such things tend to shape the whole culture and street view.
    When I went to school I had little money, yet at the same time I had no dept. Any money I could put aside from food and beer was put to audio. It didn't look like US and western EU co-hobbyists of my age and status had better gear.
     
  14. Rotijon

    Rotijon Friend

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    In our country, we have a 300% tax. So on a dollar for dollar basis, cars are 7 times more expensive. And yet, you would see fresh grads with 3k a month salaries, buying cars worth 70k on a 9 year loan. Its insane if im honest.

    The damn import tax, is the reason i absolutely refuse to spend more than the absolute minimum on a car, and would rather throw the money into audio. It was a funny day, when i bought 2 Chord Dave's (for friend) and the shop owner saw my car. The amount i paid for the dave can buy about 3-4 of my car.

    And starbucks is like 16 bucks a cup here, but they sell pretty damn fast.
     
  15. Grahad2

    Grahad2 Red eyes from too much anime

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    A simple car like a Toyota Corolla in Singapore costs S$110k++. Education costs about S$50k with loans after governmental subsidies, typically reaching S$60k with housing etc. Monthly salaries are half that of US, without conversion (i.e., a 60k USD annual job in US is 30K SGD here). Food typically costs S$5, and cheaper stuff is extremely rare.

    Let's not complain about spending power.
     
  16. Rotijon

    Rotijon Friend

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    Exactly, but american students seem to really be struggling. Which is why im really curious.

    If a student here can provide monthly breakdowns that would be nice.
     
  17. Psalmanazar

    Psalmanazar Most improved member; A+

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    See in the United States, most state schools are 90-95% as good education wise as the elite schools (Ivy League) and are actually harder to do well in due to grade inflation. The average grade at Harvard is something like an A- as they don't want to hurt rich kids' feelings. The average grades at places like the University of Chicago and state schools are much more realistic. The only cheap ones though are the schools run by the individual fifty states.

    I only know about Russia but communism stole the agricultural livelihoods of the people to bring mediocrity to all which was stolen by the elite few after the fall of totalitarian communism. These well-connected subsequently sold off the raw material assets and means of production of factories that could not compete on an open market to enrich themselves. If almost anyone is very wealthy, they obtained their wealth through connections or illicit means so for example when Putin criticizes any oligarch opposed to him, he does not have to lie even though Putin was connected himself to the guy that misappropriated most of the state assets (EVERYTHING) around Leningrad.
     
  18. barelyincollege

    barelyincollege Nice Pit Bull

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    Are expectations for moving out any different in Malaysia than in North America?

    In North America, it's not uncommon for parents to kick their kids out of the home once they reach 18 or 19. My family's Asian, so my parents had no problem with me staying at home until I got married / saved up enough to afford a place of my own, but many students here don't have that option.
     
  19. Grahad2

    Grahad2 Red eyes from too much anime

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    Did I mention housing in Singapore is 7 digits or GTFO(into the streets)? We can't move out.
     
  20. Rotijon

    Rotijon Friend

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    Ah thats another, most dont move out, unless you're studying out of state. Those that study out of state tend to have some allowance that they supplement with working part time. But they dont seem to struggle as much.

    Working part time here per month can net you 1k- 1.5k a month. Rent is like 600 a month.
     

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