New Generations and Financial Literacy
Boomers and Gen X were complaining about Millennials up until not that long ago. But time marches on and we now have two new generations to be aware of — if not concerned for. Generation Z, colloquially known as zoomers, is the demographic cohort succeeding Millennials and preceding Generation Alpha. Researchers and popular media use the mid to late 1990s as starting birth years and the 2010s as ending birth years. Most members of Generation Z are children of Generation X.
Here’s how it breaks down in terms of age ranges and numbers of the population — Baby Boomers are currently between 57-75 years old (consisting of 71.6 million in the US). Gen X was born between 1965 and 1979/80 and is currently between 41-56 years old (65.2 million people in the US). Millennials were born between 1981 and 1994/6. They are currently between 25 and 40 years old (72.1 million in the US). Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the US) and the coming generation is Generation Alpha, which starts with children born in 2012 and will continue at least through 2025, maybe later (approximately 48 million people in the US).
While Millennials were the whippersnapper upstarts until recently, many of them are now parents. And just like their mothers who control 85 percent of household purchases, today’s children are swayed by the recommendations of friends and online influencers. 37 percent of American parents say their children are most likely to ask them to buy a toy or gadget because a friend has it, while 22 percent say their children are most swayed by online influencers.
As they grow, our children will be faced with many challenges and will be confronted with financial choices that they may not be prepared for. Teenagers are looking at the costs of higher education and fear they won’t be able to keep up. Some 54 percent of teens say they are worried about financing their futures, according to a survey from Junior Achievement USA and Citizens Bank. What to do after high school is the biggest stressor around money, the survey found. Nearly 70 percent of teens said that rising higher education costs have affected their post-graduation plans.
Interestingly enough, the survey also found that 41 percent of students said they didn’t have any financial literacy classes in high school. This may factor into the financial stress that teens feel when preparing for their futures. Nearly 40 percent said that having a better understanding of how student loans work would help ease their concerns.
David Beckerman, Senior Vice President of Investments at David Lerner Associates says that “Gaining a better understanding of financial basics and developing good fiscal habits are the best way to stay in control of your money and financial future.”
No matter how old you are, by starting to plan for your future now, you will have a better grasp on the most important savings plan you’ll ever embark on, and begin to accumulate wealth from a young age.
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