Everyone has a different comfort level with debt...
I knew the oh-so-rural suburb we moved into 6 years ago had been rapidly growing into a booming area, but this 3-part series on Colling County in the Dallas Morning News was EXTREMELY enlightening (fascinating, humbling, fear-inducing, etc.) as to the demographic statistics. First things first, you will need a login to access the DallasNews site, so using trusty BugMeNot.com (remember my previous blog on this?), I found the following login and password for you to access the articles:
login: noway@fake.com
password: sowhat
Anyhow, it appears there are way too many Joneses to keep up with in Collin County. Not that we wouldn't love to try, if our stubborn budget would allow (doesn't reality stink sometimes?!) We always comment about the extravagence we see -- all the high dollar cars, neighborhood after neighborhood "from the $300s to $1.5m+". Envy is a bad thing, but you can't help but wonder HOW there is that much money for such a young demographic area. There can't be that many people moving from California with massive home equity built up, can there? There can't be that many doctors and lawyers, are there? How is that young family living in a house 2-3 times more expensive than ours, with what appears to be a stay-at-home mom and her two kids playing in the yard, their Lexus and Escalade in the driveway? After all, we are doing pretty well, yet we definitely feel the tight pull of our budget strings. Makes you wonder.
Don't get me wrong, I enjoy material "things" as much as the next guy. A boy has to have toys, right?? If given free reigns, I could do some serious damage at Best Buy and Home Depot. However, life is about choices, and we chose to put our family first when we chose for my wife to become a stay-at-home mom after the birth of our first child. No doubt our family is stronger with her home to raise our children. We are blessed to be in a situation that allows her to be able to do this. Now, the downside for us was it put one SERIOUS damper on our disposable income, and truth be told our tight budget has resulted in its fair share of.. umm... discussions (arguments sounds too harsh!)... as our "wants" column grows beyond our "needs". Luckily, we do a pretty good job of keeping reality in mind and our budget in order. That's obviously not the case for many. Back to the article...
Sunday's articles discuss Collin County's wealth may not be what it seems. It compares Collin County to comparable suburbs across the country, and the results are shocking. As Kristen likes to say, "Everyone has a different comfort level with debt." Here are some bullet points from the article:
• On average, Collin County residents have more credit card debt – $4,200 – and a lower net worth – $125,000 – than residents of other high-income counties throughout the country, according to a Dallas Morning News analysis of various economic indicators, including Claritas Market Audit.
• The average amount due on an auto loan or lease service for Collin residents is about $19,300, highest among a dozen comparison counties.
• Bankruptcies – about 3,500 last year – more than doubled over five years, outpacing all other similar-sized counties nationwide.
• About 3,300 homes were foreclosed upon last year, two-thirds in higher-income neighborhoods.
• About 56 percent of the county's population of 600,000 hovers around the median household income, with people bringing in $50,000 to $150,000 annually. As a group, residents are generally younger than their counterparts around the country – at a median age of 33.4 years.
Monday's articles discuss such things as the Retail Boom in Collin County. Here are some bullet points from that article:
•It's the wealthiest county in Texas and one of the wealthiest in the nation.
•About half the families have children. 30% of Collin County is under the age of 18.
•It's a growing area where retailers can build new stores, and cities sometimes provide tax incentives to lure them.
•Many residents are buying new homes, which they quickly furnish, landscape and decorate.
•White-collar workers and busy parents have no time for chores – such as gardening, cooking, cleaning – so they demand services and often eat out.
Tuesday's articles, such as Nothing but the best from mom and dad, discuss the excessive spending of many Collin County parents on their children. Collin County has about 3% more children among its population, and 13% more married couples with children than the nationwide average, and many of these are living the high life. Kids at Plano West High School driving Hummer H2s and BMW M3s... $1000 pedicure parties for 11-year-old girls.... kids with $200/wk allowances. Wow.
There's a lot to read throughout the entire 3-part series. Sunday's section alone spanned about 6 pages in the paper, and kept me entralled for the better part of an hour. The entire series was very good in reminding me to keep grounded (and revisit our family budget!) It is very easy to get caught up in material things when you are surrounded by it. It also brings home the fact as a parent I need to be particularly aware of the influences my children will face. It won't be an easy fight, will it?
login: noway@fake.com
password: sowhat
Anyhow, it appears there are way too many Joneses to keep up with in Collin County. Not that we wouldn't love to try, if our stubborn budget would allow (doesn't reality stink sometimes?!) We always comment about the extravagence we see -- all the high dollar cars, neighborhood after neighborhood "from the $300s to $1.5m+". Envy is a bad thing, but you can't help but wonder HOW there is that much money for such a young demographic area. There can't be that many people moving from California with massive home equity built up, can there? There can't be that many doctors and lawyers, are there? How is that young family living in a house 2-3 times more expensive than ours, with what appears to be a stay-at-home mom and her two kids playing in the yard, their Lexus and Escalade in the driveway? After all, we are doing pretty well, yet we definitely feel the tight pull of our budget strings. Makes you wonder.
Don't get me wrong, I enjoy material "things" as much as the next guy. A boy has to have toys, right?? If given free reigns, I could do some serious damage at Best Buy and Home Depot. However, life is about choices, and we chose to put our family first when we chose for my wife to become a stay-at-home mom after the birth of our first child. No doubt our family is stronger with her home to raise our children. We are blessed to be in a situation that allows her to be able to do this. Now, the downside for us was it put one SERIOUS damper on our disposable income, and truth be told our tight budget has resulted in its fair share of.. umm... discussions (arguments sounds too harsh!)... as our "wants" column grows beyond our "needs". Luckily, we do a pretty good job of keeping reality in mind and our budget in order. That's obviously not the case for many. Back to the article...
Sunday's articles discuss Collin County's wealth may not be what it seems. It compares Collin County to comparable suburbs across the country, and the results are shocking. As Kristen likes to say, "Everyone has a different comfort level with debt." Here are some bullet points from the article:
• On average, Collin County residents have more credit card debt – $4,200 – and a lower net worth – $125,000 – than residents of other high-income counties throughout the country, according to a Dallas Morning News analysis of various economic indicators, including Claritas Market Audit.
• The average amount due on an auto loan or lease service for Collin residents is about $19,300, highest among a dozen comparison counties.
• Bankruptcies – about 3,500 last year – more than doubled over five years, outpacing all other similar-sized counties nationwide.
• About 3,300 homes were foreclosed upon last year, two-thirds in higher-income neighborhoods.
• About 56 percent of the county's population of 600,000 hovers around the median household income, with people bringing in $50,000 to $150,000 annually. As a group, residents are generally younger than their counterparts around the country – at a median age of 33.4 years.
Monday's articles discuss such things as the Retail Boom in Collin County. Here are some bullet points from that article:
•It's the wealthiest county in Texas and one of the wealthiest in the nation.
•About half the families have children. 30% of Collin County is under the age of 18.
•It's a growing area where retailers can build new stores, and cities sometimes provide tax incentives to lure them.
•Many residents are buying new homes, which they quickly furnish, landscape and decorate.
•White-collar workers and busy parents have no time for chores – such as gardening, cooking, cleaning – so they demand services and often eat out.
Tuesday's articles, such as Nothing but the best from mom and dad, discuss the excessive spending of many Collin County parents on their children. Collin County has about 3% more children among its population, and 13% more married couples with children than the nationwide average, and many of these are living the high life. Kids at Plano West High School driving Hummer H2s and BMW M3s... $1000 pedicure parties for 11-year-old girls.... kids with $200/wk allowances. Wow.
There's a lot to read throughout the entire 3-part series. Sunday's section alone spanned about 6 pages in the paper, and kept me entralled for the better part of an hour. The entire series was very good in reminding me to keep grounded (and revisit our family budget!) It is very easy to get caught up in material things when you are surrounded by it. It also brings home the fact as a parent I need to be particularly aware of the influences my children will face. It won't be an easy fight, will it?
posted by Slacker at 10:15 AM
7 Comments:
Very good synopsis Kevster. It was a fascinating article series. However, I think it was information that most people already knew but never had the factual information to backup those thoughts. It isn't just in Collin County either - Northeast Tarrant County also brandishes opulent lifestyles. Many 6500 sq. foot homes are empty because they can't afford to buy furniture to fill the entire house. Of course, lavish lifestyles have also infiltrated the young adult segment in Uptown. I make a good salary yet I can't afford a brand new Mercedes and $1000 clothing bills every week, and I know what some of those people make and yet they are doing just that. Of course, they may also have $6000 in credit card debt while I have zero. As you said, it all revolves around a person's debt comfort level.
I agree, you see decadence all throughout the metroplex (and the country in general when you look at credit card debt and bankrupcy level increases).
What the article strives to show, however, is Collin County has comparatively a much younger demographic compared to its counterparts (and definitely compared to Tarrant County) and has massive retail to feed off that.
Regardless, you are right, the article helps put facts to what we all assumed... people are spending way outside their means and stretching themselves dangerously thin. If nothing else, this should serve as a wake-up call and a warning for many...
Are both of you off your soap boxes yet?
Seriously, I do agree with you though. I know it is hard for all us to get over the "keeping up the the Jones'" mentality (me included). However, sometimes I just have to stop and count how many blessing our family has -- health, happiness, etc.
Now, Kevin when is our budget talk????
I'm glad Lane is bored with blogging--if he read this Avery's nap mat would be sent back to buy her a plastic one!
Kevin -
Very nice post and have enjoyed reading the DMN articles this week. My passion in life is biblically based finances in the family - I assist in a ministry at our church in San Antonio. This stuff is for real - it's everywhere - and it is killing families and the church. Families can't save, can't give - priorities are all messed up. 35% of ALL marriages will end in divorce due to money being the #1 pitfall.
Thanks for your post - sounds like you have your head on straight!
Holly: we will keep this article between us then until Avery had actually uses her napmat (and then no returning it!) I am surprised that Kevin didn't make me return Sam's for the plastic -- although with it having his name on it, that would be hard to do!
This reminds me of one of my favorite commercials. The one with the father talking about how fabulous his life was: nice house, swimming pool, new car, membership to the country club. He says he can afford it because he is in debt up to his eyeballs!
One thing that has always helped me is when I go to people's big, beautiful homes, I ask myself, "Are these people that much happier than me?" The answer to that is of course, no.
No amount of designer clothes, big homes, fabulous furniture, vacations, or new cars can bring happiness like a strong family, good friendships, and a close relationship with God.
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