hidden brain podcast 12/18/2017

[LivingAlmostLarge]

I was sitting in the car driving and I started listening to Hidden Brain on NPR. They were playing a rerun. Specifically the 12/18/17 podcast about being an A-lister. The first half was more celebrities but the second half was interesting. It talked about a new class of people called aspirational class. People who are creating a new social elite. It's upper middle and middle class people creating this class of people who aren't driving fancy cars, newest purses, etc. Instead everyone in this class of people are doing things to be successful and make their children successful. The professor talking about her research said all these little things were adding up. Starting with things like breastfeeding, organic food, yoga. All of the things they are spending money on was not conspicuous consumption but inconspicious consumption. Not luxury cars, fancy electronics, fancy handbags, etc.

It's stuff you can't see. Like healthcare, education, retirement, pensions, etc She pointed out breastfeeding is a expensive return because you aren't working usually. And funerals too. Apparently the more wealth, the private more quiet it is. The poorer the family the more they spend on a funeral, and its' stating to show that rich are cremating and poor are burying.

It's an interesting podcast. Somethings as simple as music lessons. It's expensive to have lessons and buy instruments but the upper classes are doing it for their kids. These same people aren't buying a rolex to pass on for $20k they said. Instead they are spending the $20k on lessons or experiences for their children.

[disneysteve]

That's interesting. The funeral part particularly, though I suspect the opposite is true for weddings. The poorer the family, the more likely it is to be in the parents' living room or back yard with food prepared by the grandmom and aunts while the rich are having the elaborate catered affairs.

I totally agree about the trend toward experiences (music lessons) vs. things (fancy watches).

[Smallsteps]

There is nothing new to this, many people who are wealthy make smart choices and most of the flash of things is for what I call the FAUX rich. Some people simply want people to believe they are wealthy. The wealthy People, I know personally, do not want people to know they are "secure " as a trust fund person I knew used to say.

Of course there will always be exceptions in any scenario.Some families who are poor will still go overboard on wedding or funeral for the looks of it nothing else.

[Singuy]

I know it's a savings forum but I do not mind spending money on materialistic things that hold their value. You cannot resale experiences, which makes too much experiences even more wasteful than buying purses. I am not a huge fan of buying depreciating assets(like cars or electronics), especially if they are on credit. But if a watch holds their value, then so be it. Hard appreciating assets are actually good investments during an economic crisis(to hedge against the rare events of hyper inflation).

I know studies and people here put "experiences" on a high pedestal but when it comes to accumulating wealth, its has an absolutely terrible return(as in a 100% loss).

[james.hendrickson]

I know it's a savings forum but I do not mind spending money on materialistic things that hold their value. You cannot resale experiences, which makes too much experiences even more wasteful than buying purses. I am not a huge fan of buying depreciating assets(like cars or electronics), especially if they are on credit. But if a watch holds their value, then so be it. Hard appreciating assets are actually good investments during an economic crisis(to hedge against the rare events of hyper inflation).

I know studies and people here put "experiences" on a high pedestal but when it comes to accumulating wealth, its has an absolutely terrible return(as in a 100% loss).

I feel this way about bullion. I like buying American eagles and would rather have gold or silver than experiences.