I earned $8/hr while in college and lived on it. I ate a lot of noodles, but I lived on it.
But you're definitely right about the cell phone -- it's considered an "essential" expense nowadays which is ridiculous. If my company didn't provide the phone/service, I'd have a basic pre-paid phone for emergencies only...
And I agree with the spoiled part. Kids don't want to live on their own when they can leech off of mom and dad. My sister's in her mid-20s, still going to school, and still living at home. She works full-time, should COULD afford her own place if she wanted to. When I push her on it, she says, "Why? I'm always at school or work anyway." She then blows her money on stupid crap instead of saving it up and paying down bills. Drives me crazy.
Is it wrong to think that if I'm a parent, I'm kicking my kids out when they're 18?