Tags: Recession | Millennials | investors | economy

The 2008 Recession Created 2 Camps of Millennials. Which One Are You?

By    |   Thursday, 21 Apr 2016 08:58 PM


The millennial generation’s financial views and habits have been most influenced by their parents but the Great Recession has had a lasting impact on how they think about money as well, according to a Bank of America/USA TODAY Better Money Habits survey.

“Children learn what they live,” said Patricia Davis, author of "Mimi, Money and Me: 101 Realities About Money Daddy Never Taught Me But Mama Always Knew" (Davis Financial Services, December 2010). “Basic financial values are developed by watching the way parents handle money. This can be positive or negative.”

Nearly half of millennials say the economic downturn changed the way they think about money with emergency funds being the top reason they are saving.

“Right when it was the millennials turn to grab hold of the American Dream it exploded in our face with the Great Recession happily pulling the pin,” said Paul Angone, author of "All Groan Up: Searching For Self, Faith and a Freaking Job!" (Harper Collins, April 2015). “This has created two leading camps of millennials.”
 
One camp are reportedly frustrated, confused and unmotivated cubicle workers, part time employees or just fully employed. "These millennials are stuck in a funk and are struggling to get themselves out of it,” Angone told Newsmax Finance.

Other more entrepreneurial millennials are scrappy, innovative and creative.

“The Great Recession might have been the best thing that ever happened to millennials because it’s forced us to learn patience, perseverance and grit,” said Angone.

Of millennials who say their parents did an excellent or good job teaching them about money, 74% have savings and 48% create a budget.

“Watching the way parents handle their money provides a valuable lesson in the benefits of planning or contrarily the cost of not doing so,” Davis said. “It teaches children discipline, choices, options, financial decision-making and sacrifice as well as about the benefits of education and work.”

Of those millennials who say their parents did a fair or poor job, only 55% have savings and 37% make a monthly budget.

“Millennials seem to be comfortable sitting in Mom's basement playing video games as long as they get three square meals a day,” said Dawn Bennett, a financial advisor. “Or they feel called by a higher purpose to try and make the universe a better place for all living creatures and unfortunately, making the world a better place is not an employable career for most.”

Some 71% of millennials give their parents an excellent or good rating on teaching them positive money habits compared to 65% of parents who rate themselves as excellent or good.

Overall, Angone advises parents to be a guide and mentor to their children and to assist them in finding resources instead of just telling them to figure it out.

“Parents can help by being open about their own struggle to make it in their twenties,” Angone said. “Instead of appearing that you had it all together in your twenties, think back and talk about when you were scared about how you were going to make money.”
 
Juliette Fairley is an author, lecturer and TV host based in New York.

© 2017 Newsmax Finance. All rights reserved.

 
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The millennial generation's financial views and habits have been most influenced by their parents but the Great Recession has had a lasting impact on how they think about money as well, according to a Bank of America/USA TODAY Better Money Habits survey.
Recession, Millennials, investors, economy
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2016-58-21
Thursday, 21 Apr 2016 08:58 PM
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