Two couples buy homes next door and both breadwinners make close to the same salary. Both couples have two children. Couple one buy new cars on credit and enjoy vacations every summer on the lake. A shiny boat sits in their driveway and couple two's children are jealous.
Couple one thinks their neighbors must be earning more or investing more wisely to afford all their extravagance.
Couple two both work and make double house payments, paying off their home off in 15 years instead of 30. Their cars are not clunkers, but they don't buy new cars although it would fun to drive a new car. They can afford new cars now that their house is paid off, but they live frugally, saving for a rainy day and hoping to send their kids to a good school.
After 25 years of living next door, its time for the kids to leave for college. Both kids apply to and are accepted by the state university. Couple two have saved enough for tuition and some extra spending money for their kids. Couple one applies for and receives Pell grants based on their monthly payments which leave little left over at the end of the month. They took a second mortgage on their home to buy the boat and take vacations, so their house payment has grown, rather than being paid off.
Okay kids.. which type of citizen do we want in America?
Ans: Couple two.
But what type of citizens are we rewarding for not being responsible?
Ans: Couple one.
What do the kids learn about their future lives? Should they live frugally or not?
