Ready to go shopping kids?
Because of my involvment with and mentoring of young creatives, I thought I'd ask a favour of my younger readers - what do you think of this hard hitting quote?
"For Generation Y the crisis has hit harder than September 11. This is the first financial trauma of their lives, and they have been led to believe that access to capital and spending is limitless. Many of them are just completely over their heads. They have no idea of budgeting."
That quote is taken from a Wharton study on the shopper of tomorrow. It's a very interesting study. You can read more about it here.
posted by Stan Lee at 5:22 pm
19 Comments:
I'm a tad too old to comment from my own perspective, but I had a flatmate in Dubai who was right in that demographic.
Originally he lived in London, but left after running up some large debts.
Then in Dubai he racked up something like $50k of credit card and bank loan debt before suddenly leaving the country one night.
In the time I knew him, there was not a single week where he spent within his means.
I'm possibly too young to comment from my own perspective, but...
... COME THE FUCK OFF IT.
Worse than 9/11? Fuck off. Seriously. My spending hasn't changed over the past 12 months. And nor does it look like it will. Even if it does... worse than the death of 3000 people?
Yes a few of us might be in debt, but so are Gen X.
You've mad me so angry I'm going to rev my car for a while and then go hooning.
Hi Stan, this is my first reply but i've been enjoying the blog for some months now. I believe that while GenY may not have the experience of a financial crisis, we seem to be doing pretty well. I don't know of a single person who's over his head in debt or even looks like he/she might not be able to manage it.
I heard an interesting report the other day on how GenY don't fear debt any more and see it as a normal part of life. I believe that this might be true, but from what i can see, it has been managed well to date - although i guess the next 24 months will tell.
September11 has definitely had a much, much greater effect on GenY, but hey, this economic crisis is far from over. It may be exactly what this generation needs.
how about if you've got a foot in both generations, like i have the joy of doing? i remember a financial crisis in my lifetime ('the recession we had to have') AND i'm in more debt than i'd like to be, thanks to being the spawn of the baby boomers: OG debt monkeys.
it's not really worse than 9/11, or black saturday, i think we should make it worse than that - genY don't have anything to whinge about so far and i think we need them to become gen why-me. :) it makes it fun for everyone.
I'm Gen Y - I saw my parentals pay 17% interest on their homeloan (it was so dire Mum sold Dad's Isaac Asimov's to the second hand book store and has never been forgiven). I was in London for Sept 11 and fretted when the mobile phone lines went down and my partner was working in Whitehall.
BUUUT, the biggest financial crisis I've been through is having a baby and trying to buy a house at the same time (during peak property late last year). Oh the war stories I'll have to tell! Battling it out at auction with babyboomers bidding against me to increase their 10 house property portfolio.
What bugs me is the 'tone' - like Gen Y need the GFC like a dose of cod liver oil or something.
I think it's also important to remember that Gen Y is a massive group with different needs/wants/desires - we're talking 1977 to 2000 so lots of different life stages.
Also perhaps we can talk 'good debt' vs 'bad debt'? Worthy/unworthy? According to who?
Most Gen-Y had huge disposable income, and work in industries that are likely to be unaffected/temporarily affected (services) by the GFC.
Most of them do not have expensive financial commitments like mortgages or dependents. The only commitments most Gen-Y have are much smaller (phone bills, credit cards, rent) or non-existent. How many people do you know who live at home - fully employed -and have their parents still paying their phone bills, car repayments, etc?). Yes, they are still out there.
Is Gen Y naive? Maybe. But stupid? No.
If they get squeezed over the next 6 months they'll wear it, and probably in the meantime invent a new thrift fashion movement to boot.
I'm Gen Y - 24, born in 1984.
Don't agree with the study. Maybe if I was 30+ and had commitments (house/kids) i'd be worried, but I feel fine, and still spend the same way.
Completely disagree.
Most Gen Y kids don't actually own anything substantial/ or have any long term, serious financial commitments, or kids for that matter. So there's no need to borrow large amounts of money.
And those that do own something, know how to manage a budget.
Generalisation sure, but it's accurate amongst my mates.
Everything I know about credit and spending I learnt from my parents. If I thought it was limitless, it would be because they did too. They didn't. I don't. I'm a miser just like my dad.
I agree this is the worst kind of recession for our economy from a long time. So many good companies never known to lay off experienced employees have done that with little consideration.
Things are getting bad every day..
I love Zac's comment.
You know I've been thinking about this a bit of late.Dunno if this is unique to me (and the kinda person I am) so thought I might share it here and see what people think...
I feel the biggest issue facing GenY and the recession is the restrictions on our freedom.
GenYer's are an energetic and restless bunch. It's pretty rare to have a job locked down for more three years - but i think this is more of a nature of the world we've grown up in rather than a generational thing. GenY have grown up enjoying the ability to move. Move jobs, move home, move goals, move everything. We're ambitious, dreamers and I'll admit it, at times selfish and the world has made it so easy for us. And for a long time we were cashed up, learned up, ready to run into the next best thing that captured our attention/short-term desires.
The trouble now is whilst we still have this sense of freedom, the world around us is locking down. All of a sudden, you can't think about leaving your job and applying somewhere else. You can't quit your job for that 6 month holiday thinking you'll be ok when you get back. You can't chase those dreams like you could a few years ago. If you're a year into a job that kinda sucks, then you're pretty much stuck there unless you take a massive chance. And it's that uncertainty that will create the biggest friction between us and the economy.
Anyways... two cents.
I'm sick of people stereotyping Gen Y as a group of reckless hoons who have no idea about anything.
Most of my friends are part of the so called 'Gen Y' group, and we are all highly educated, hold professional positions at big corporations, and have aspirations to get into the property market in the near future.
It's ridiculous to just slag off young people of the community all the time and disregard them. We're the future after all.
The funny thing is they bag us now, but we'll be the ones supporting them in the not to distant future when they can no longer look after themselves.
So be nice!
I don't want to 'hog the blog' but I also thought the article was quite interesting because it talked of 'rewarding' yourselves with luxury goods for a job well done or long hours worked. I think people will continue to do this (whether X,Y or Boomer) it's just the definition of 'luxury' will change (I think it has already). It's not LVMH label slapped product but that is which is 'crafted' and takes time to produce. (Like coffee beans picked by trained monkeys in the hills of East Timor?). Time = luxury. Seth Godin has a good post about what you should be doing with your 'slack time' if you find yourself wanting for work.
http://sethgodin.typepad.com/
The comment about disposable, fast fashion is a good one - about five years ago (when living in London) I would pop into Zara or Topshop on a Thursday night to buy my outfits for the weekend. That's right, I used to buy an outfit per weekend...I don't do that anymore. Not because of GFC but because I've had a major lifestyle change.
So whatever I purchase now has to be 'classic', it has to last, it has to be quality so it doesn't look shabby after one wash....and I think this is a good thing. It means I have to be more discerning/creative.
There's a chick in admin in my office, 22, wants to be an actress. Also wants a new $20k car and is $6k deep in an 18% credit card. Earns $600 a week.
Solution? Mum and Dad!
9/11 was worse. never did we think - i think this is true for many more people than just Gen Y - that we could be attacked on our own land. wars and enemies overseas is one thing, but the reality of it our own land was something new and shocking.
as for this recession, we are still cheap labor and are kept on accordingly. we also have enough time to save. i think it is far worse for the older generations who lost a lot of their 401ks.
1. I'm not American/Australian
2. I'm 19 so you might count that as Gen Y I suppose
3. I have been reading for a while now
It's true of some people - if you count white, middle-class British like Gordon Burn did. "Motto: to think is to regret. Hobbies: getting and spending." I have friends who do that, and perhaps too many of them in university. Some are very honest and mature about not being able to switch jobs, get money from mum and dad forever, debt and such, and therefore avoid it. But to me, some still appear to be in some sort of coma that they're trying very hard to get out of. If anyone I know reads this comment they'll get all defensive but I see guys and gals week after week going 'oh I need that dress' / 'I need that jacket' / 'I'm on my nth overdraft' and so and so on. So much it drives me crazy with boredom. They'll always be the ones who have no idea that trying to leave your card at home and taking just cash with you is a money saving tip. "Money? But I've never had to save money before!"
Or my most favourite line as of late (past year or so): got paid on Wednesday and drank all of it till Saturday...now I can't pay my rent.....shit. I'm beyond f*cked.
For them it might be worse than 9/11 psychologically.
Don't think it's worse than 9/11
But I'M SO BAD WITH MONEY in general so it's made me really think hard about what I spend on.
Not really in any debt. Don't own anything. Credit card is en route to being paid off along with the fricking million parking fines that I rack up.
I think Gen Y are so used to being 'Junior's' that we're not going to suffer as much as the seniors that are getting the axe.
They have mortgages to pay off and I just have my suede leather vest at design a space.
I seldom comment, however I browsed a ton of responses here "Ready to go shopping kids?".
I actually do have a couple of questions for you if it's allright. Could it be simply me or does it seem like a few of these responses appear like they are left by brain dead visitors? :-P And, if you are posting at additional online social sites, I would like to follow you. Could you list of all of your social sites like your Facebook page, twitter feed, or linkedin profile?
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