Many Americans Happy to Go into Debt for a Vacation
01:36
19 sie 2024 13:34
01:36
19 sie 2024 13:34
Opis
In many of the world's richer countries, young adults feel they can't afford to start a family. They also see the idea of buying a house as an impossible dream.
So, they're going on holiday instead!
And Elizabeth Currid-Halkett from the University of Southern California told CNN that young people are happy to take on some debt to go on a trip.
That's because it feels like a very small amount of debt compared to the cost of college or a house.
In fact, a May 2024 survey by US money website WalletHub found that two out of five Americans agree: they think it's worth going into debt to be able to have a good vacation.
Some call it "doom spending" — spending money on short-term pleasure, not saving it for something bigger in the future.
People point to the fact that house prices have increased much faster than wages, and so young adults today feel that saving for a home isn't realistic.
They feel the money would be better spent on a nice vacation.
There are also airlines that let customers book a flight but pay for it later, something that may appeal to these younger travelers.
However, experts say doom spending is a risky way to use your money, especially if it becomes a habit.
Money expert Louise Hill told Sky News that spending on short-term pleasure also makes it even harder to save for big things in life like a house or a family.
She said: "By the time you've saved enough for it, think about whether you still really want it."