I'm confused; can you explain why a student shouldn't ... prioritize fuzzies?
Whenever I think of purchasing utilons, I always figure I could get 10x later in life with each donation when I'm financially better off, so I walk away from the experience feeling like a utilon failure. So I worry that feeling of failure is going to make me less inclined to donate later. Meanwhile, if I stock up on fuzzies now, I can tell myself later that, not only am I not failing at utilons, but my utilons also feel 10x as fuzzy as those modest fuzzies from my student times.
Is there an obvious error in here? I guess I should also mention that I don't really spend a lot on ... stuff.
The point is to get into the habit of giving efficiently. Going through the process of choosing which effective charity to give to is a distinct skill from choosing to give in the first place or acquiring the jobs that will give you more money later. So it's worth practicing. And it's worth conditioning yourself to take pride in that effective-charity-selection process.
I don't think most people actually "stock up" on fuzzies. Donating to fuzzy charities may simply build the habit of donating to fuzzy charities and then make you feel bad later whe...
Topic: I will be in debt for several years, but will eventually have a disposable income. Should I donate now or later?
Here's my situation: I am a student, with student loans and no income. I can take out more loans than I need. Grad PLUS loans have a fixed interest rate of 7.9% - higher than, say, a mortgage rate, or expected stock returns. Some day, I will have those loans paid off, and will have money that I intend to give to charity.
My objectives: to live on less than my means, and give a significant fraction of my income to charity.
Question: When, if ever, should I give to charity before paying off those loans?
My initial reaction is to keep a record of how much I feel like I should be giving now, then give it later, adjusted for interest (at some rate equal to or less than 7.9%) - this would result in a bigger donation, but the same impact on my finances.
The only times I think I should give now, and not later:
1)If I don't believe I will make good on my commitment later on. (I'll presumably have a family and bills, etc, and while I am perfectly happy to live on little myself, I know I will want my kids to have nice things. This is somewhat illogical, but I'm imperfect.)
2)If the most worthwhile charity I find see has a higher interest rate than 7.9%.
3)If I find an opportunity to use my money charitably in which I can do more good than others, or where no one else can or will donate. (Mainly, random acts of kindness to strangers or friends - or, someone is matching my donation)
I doubt I will ever see 2) happen (or if it does, I should raise awareness)
3) doesn't happen very often, but when it does I think it is an acceptable use of funds
1) is the main scenario that concerns me. I've heard that "giving charitably is a habit" (that's why my parents had me tithe as a kid). I think that's true, though I haven't read any research on that. Either way, though, as I have no meaningful income (and my loan "allowance" is way more than I care to borrow), how much should I donate to help form the habit?
What do you think? Also, are there any other reasons to donate sooner and not later?
Edit: Givewell has an article on giving now vs later. Not all of it is relevant to my situation, but one point:
>"Economic growth, increased giving, and smarter giving may mean that giving opportunities are worse in the far future."