Understanding Y

CHAPTER 20 Financial Matters (Not)

Charlie Caruso

It is incumbent on every generation to pay its own debts as it goes. A principle which, if acted on, would save one-half the wars of the world.

Thomas Jefferson

Why are so many Millennials still living at home?

Over 81 million young people are unemployed worldwide, with $1 trillion in collective debt. That’s Y.

When it comes to managing their finances, Gen Ys are largely misunderstood to be debt-plagued, reckless spenders with a preference for travel over financial security. The global financial crisis (GFC), while significant, did not seem to pack the punch that previous recessions and market collapses have. Gen Y hasn't had to ration food and, despite the significant impact that the GFC has had, the majority of Gen Ys were able to keep their smart phones (even buy the latest releases), and most likely are still well clothed and well fed. As a cohort, Gen Y is well educated and has lived in a time of relative peace (no serious threat of atomic warfare) and stability. So how has all this affected their ideas and beliefs?

A lot!

As the most connected, media-savvy generation to date, members of Gen Y crave information. Yet, despite the drive to gather facts, figures and data through multiple channels, they are more motivated by their peers’ influence than any other group. In many ways, attaining property had been the Australian/American/Western (or global) dream of generations gone by. The question is whether this will continue ...