Independence is one thing we’re suppose to acquire as we get older. The US housing market, however, is impeding Americans from becoming financially self-sufficient.

This article found on Bloomberg states that in the past year, 27% of first-time home buyers received money from parents in order to place a down payment. This is disheartening, strangely interesting, and relevant for several reasons:

1. The market moves towards equilibrium. I found this to be a really interesting example. As annual incomes decrease and housing prices increase, people come up with the money with the help of their parents, especially when rental rates go up.
2. The market doesn’t adjust for everyone. While parental contributions abate the issue for non-minorities, it is improbable that parents of minorities are homeowners who have cash reserves built-up. This solution unfortunately isn’t equitable.
3. Life is full of Catch 22’s. We go to university to get a higher education and a job to support ourselves. But first, we need money to pay for that education. Similarly, it’s easier to buy a house when you already own a house, because down payment rates substantially are lower.

And thus we are back to square one. I can only hope that our future as first-time home buyers is somehow less arduous.

Photo Sources:

http://www.multiplemayhemmamma.com/2013/01/kids-do-chores-ear-allowance.html#sthash.x3sdWmAj.dpbs

http://www.quickenloans.com/blog/saving-for-a-house

Most of us have contributed to a charity at some point in time. Although it may be naïve to romanticize that our three dollar donation can truly end poverty or bring about equality, it’s inspiring to believe that we can be a part of something greater than ourselves and impact our society in a positive way. This is why so many people contribute to charitable organizations.

That being said, I have been disappointed several times when I discovered that donations aren’t going where I had assumed. Sadly enough, this has been the case for several so-called “charitable” organizations. Take the Kony 2012 campaign for example. Forty-three percent of the money Invisible Children spent went towards awareness campaigns, while thirty-seven percent was used on African-related programs. While bringing awareness to people is important, it seems a little ridiculous that such a small amount actually made it to the country where it was needed, especially considering the large salaries executives raked in.

What’s most disheartening is that these organizations take advantage of very worth and valid causes, because they know that it is profitable. This is manipulative, misleading, and unethical. If you haven’t seen the viral Kony 2012 video, it’s worth watching. It’s easy to see how viewers are compelled to “help make a difference”.

Image Source:

http://blogs.uoregon.edu/teamkonyj350/1-2/