It was a pleasure to attend this insightful presentation by legendary Iconoclulture.
Millenials are filling the crunch of the economic crisis and they have to adjust their expectations. However, there is a silver lining in these dark clouds or reality – young people are rethinking what matters.
Demographic
1987 – 1995
72.1 million
$1.5 trillion of buying power
Formative financial events for the Millenials:
1980 – Dawn of self esteem movement (everybody gets a trophy)
1990 – Recession is not felt (too young)
1995 – Launch of Amazon (idea of accessibility)
1997 – TiVo (idea of control)
1999 – launch of Napster (free music – free access)
2000 – First Millenials graduates college – 65% in debt
2001 – Mild recession, quick rebound
2004 – MasterCard target twins (Hallow Kitty debit card)
2006 – all 10 largest colleges cobrand credit cards targeted to students
2008 – Financial meltdown
Generational mindset
- extraordinary by default
- praised and raised for success
- “what I want when I want it”
- I’m “me, but part of “we”
- The good life is a right, not a privilege
Generation feels good about themselves, more narcissistic tendencies than other generations. However, it is not “I deserve it,” but rather “we deserve it.”
The reality
$20,000 – average debt for college graduates
$2,500 – average credit card debt ( 2008 )
57% pay minimum on their credit cards
77% moving in with mom and dad
Specific generational pain points in a recession:
student loans- credit card debt (average salary for young grads is less than a generation ago, but prices are higher)
- jobs disappearing (more laid-off professionals are willing to take jobs that used to be entry-level)
Changes in behavior
- using less credit cards
- trading off (moving with mom and dad; choosing community college, etc.)
- adjusting expectations (no “job hopping” when dissatisfied with a job…)
Still…
81% are hopeful about the future
57% are excited
81% cited relationships with friends and family is important (rather than career success)
As a result…
- Thrifty is good! “Almost a pride in clipping coupons.” Online comparative shopping.
- Flash mobs – large groups of people offering to shop in a certain establishment if price is reduced or business practices changed to more ethical/green
- Peer-to-peer landing
- Social money-management resources
- Recognition that we need to educate young people about finances
- Reexamination of priorities by the young people (friends…gardening… making own clothes…)
- Interest in “practical” careers
- Gross National Happiness: a new world order
Posted by vbrights 
