It is incredible that terms created to assist in demographic research for advertisers would become mainstream words in today’s society.

It all started with the post-war baby boom to create the aptly named, “Baby Boomers” through to our present-day youngsters known as the Alpha Generation or “Gen A”. But it seems the generation that has consistently attracted the most attention in recent years is “Gen Y”.

Whether you like this labelling or not, if you delve into how the generations interact with one another when it comes to money, it can be very interesting.

There is no doubt that Generation Y, the children of the Baby Boomers, is the driver of the next economy. Currently aged in their 20s and early 30s, these people tend to be highly educated, live for today and delay marriage, children or a traditional career, until later in life. And, generally speaking, they are not good money managers.

Who’s to blame? The Baby Boomer generation (born between 1946 and 1964) consisted of children born into families recovering from WWII. This generation was the first to create two-income families and with this extra income these parents tended to indulge their children.

“Gen Y-ers” (born between 1980 and 1994) have been referred to as ‘KIPPERS’ (Kids in Parents’ Pockets Eroding Retirement Savings), with the latest Australian census data showing that nearly a third of young adults are still living with their parents.

Extended education and housing affordability are contributing factors, but it usually comes down to the fact that it’s far cheaper to stay at home with parents covering most of the costs, such as utilities, food and other essentials.

Some of the Y Generation are happy for “Bank Boomer” or “Bank Mum and Dad” to prop up their lifestyles and supplement their income. But this is proving to be the downfall in their becoming successful money managers. Many are heavily in debt, with research indicating that 73% hold some form of loan, often HECS debt.

Having grown up in a largely booming economy, Gen Y is often unrealistically optimistic but it’s getting close to crunch time for this generation. Overly generous Baby Boomer parents are closer to retirement age and are becoming more focused on their own future needs. They either won’t or can’t afford to continue supporting their children’s lifestyles. These young adults need to develop budgeting and debt management skills, build their savings and turn their attention to their future, such as buying a home.

If you’re the parent or the child and the time is looming to make some hard decisions, arrange a time to sit down with us to help you prepare for a different future that works for everyone. Call Leenane Templeton on 02 4926 2300.

The post Y it needs to change appeared first on Newcastle Financial Planners & Financial Advisors.

If you are a parent of a teenager or a pre-teen, take heart – communicating with them is probably just as hard as it was for your parents to get through to you! And before you start to argue, remember back to when you felt that you weren’t being “understood”?

The good news is that you are not alone and the better news is that there are ways and means of communicating with people who think that grunting is a highly evolved form of communication.

The stages

These are the generations of the last century that researchers, marketers (and parents) are focusing on (or dealing with!). 

• 1920 – 1945    Veterans/Builders
• 1946 – 1964    Baby Boomers
• 1965 – 1979    Generation X
• 1980 – 1994    Generation Y
• 1995 – 2009    Generation Z
• 2010 +    Generation A (Alpha)

Let’s focus on the most talked about category – Generation Y – well, that’s until we see what Gen Z has to offer!

Who are these people… and Y?

In actual fact, if parents and employers of Gen Ys would stop and watch the behaviours of these young people, we might find that they have a great deal to teach us.

Consider their qualities:

• Self confident, optimistic
• Quick decision makers
• Comfortable with technology and tradition
• Entrepreneurial
• More savvy
• Take risks but don’t look back.
• No fear!

How to communicate with them?

Our own parents probably pondered the same question; however given the unique qualities of this generation maybe they have more to teach us than we think. Parents (and even grandparents) who show an interest in technology and learn how to use the internet, email and SMS will have a greater advantage of reaching their offspring, even if it does mean sending an SMS to tell them that dinner is on the table! 

Australians aged under 25 have never had to deal with a major catastrophe such as World Wars or long-term global depressions (no, the GFC doesn’t come close). Sure, getting a job might be more difficult but in many cases, because of their close relationship to technology from a very young age, they are more likely to start their own businesses. They will take risks and if they lose the lot, they usually dust themselves off and have another go. Stress is something they deal with, embracing change instead of fighting it. 

Of course, this doesn’t apply to all people in this generation, just as the attributes of a star sign don’t apply to everyone born on a certain date, but it does give you food for thought when you witness the actions of this noisy generation. And just remember, they will become parents to Generations Z and A!

Sources:
www.youthengagement.sa.edu.au
www.learningtolearn.sa.edu.au “Understanding Gen Y”
www.qtic.com.au “Generation Y profile”
White Paper – Seriously Cool: Marketing and communicating with diverse generations – McCrindle Research
www.news.com.au  Babies born from 2010 to form Generation Alpha

Call (02) 4926 2300 or email us. 
Leenane Templeton are here to help with any questions you may have in relation to your finances. 

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