From Layaway to Bitcoin ; Generational Issues in Financial Literacy Dr. Mark Taylor www.taylorprograms.com Traditionals (cont.) This handout supports Dr. Taylor’s plenary � Good savings/ richest elders ever! program at the AFCPE. It should not be � Little debt beyond mortgage distributed to non-attendees without � “Lay-away” mentality permission. For more information about Dr. � Fewer went to college Taylor’s presentations contact him at � � None who couldn’t pay for it mark@taylorprograms.com � “Pensions” + savings mentality � � = security today (for most) The program described Financial Literacy � More and better safety nets. and the The Generational Cohorts � Basic developmental factors of the Boomers � � generational groups The spanked kids of Beaver Cleaver � Financial literacy issues households where Mom was home, but � Training suggestions wouldn’t let them in the house � Generation NeXt Born about 1945-1965. Not Traditionals! Financial Literacy (FL) Training Issues � Largely developed and identified � FL is a Major issue! � today as rejecting/ rebelling against � FL Training is a great mission! � Traditional parent’s values/ lifestyles/ � � Everybody needs it � standards � � Nobody “gets” it � “Pandemic of financial illiteracy” Boomers value � � Even among “smart” people � Big picture/ mission level thinking � Lots of “vendors” posing as objective � Inclusion/ diversity/ equality � � financial literacy consultants � Youth/ adventure/ growth � � banks, investments, � Novel experiences � � insurance, government � Social interaction � Lots of pressure to spend today � Lots of motivation to not think about Boomers- From Lay-away to credit cards � � the future. � First “consumer generation” � Increased in use of credit Traditionals � Increased debt The last of the old school � Lost money and jobs in 08 bust Born before 1945 � End of pension plans Traditionals value � � 401K � Sacrifice/ thrift � � 120K median, 60% < 100K � Duty/ discipline � Reductions in safety nets � Conformity and delay of gratification � � NOT in recreational spending � Thrift � Increases in � Not consumerist lifestyles � � college costs � “Save your money” � � health care costs (more out of � “Don’t buy what you don’t need.” � � pocket) � “Don’t buy what you can’t pay for.” � � adult kid costs � “Don’t take financial risks.” � � � (50% supporting in � � � some way)
From Layaway to Bitcoin ; Generational Issues in Financial Literacy Dr. Mark Taylor www.taylorprograms.com � Boomer Financial Literacy Training Generation X Financial Literacy Traits (cont.) � May not anticipate retirement � May actively ignore planning issues � � Until last minute � Frequent lack of long term planning. � Direct, personal advice from an expert � Interactive- talk with, not to Financial Literacy Training with X � Non-critical/ Supportive � Focus on “Heads, not hearts” � Realistic yet hopeful � � Thinking, not feeling � Focus on future goals � Educational � Realistic future plans � � trends, forecasts � � Next career? � Data heavy � � Continuing working? � � formulas, predictives, charts � “Reach back” parenting training � Individualized/ personalized � � Manage your money and help � � plug in their numbers � � your kids grow up � Lead them to conclude for themselves � Use tech for the embarrassing parts � Tech interactive / Media rich � Interact for the planning parts. � Confrontive realism � � some fear OK Gen X � Long to short The independent, adaptable, pragmatic � � Long term planning to short scrappers of the “baby bust” (reduced birth � � term action= What do you rate) � � want in the future? Born about 1965 to 1985 � � What do you need to do today The skeptical, cautious Latch Key kids. Their � � to make that happen? � Mom’s worked but would not let them � Short to long � out of the house because “the world is � � Future impacts of choices � a scary place”. � � � now. � � This choice today impacts the Generation X Financial Literacy Traits � � � future. � Lots going on with their money now � � with stagnant wages Generation NeXt � More employers in work lifetime so The wanted precious, protected kids born � � confusing plans/ planning � after about 1986 and raised in child � Can’t anticipate future safety nets � centric households, contributing to � Independent = don’t seek help or � their self-importance. � � advice The self-esteem parenting agenda, where � Over use of credit / overextended � they got a trophy for everything they � Credit, not income mentality � did, has led them to overrate their � � May plan/ spend based on � skills and be sensitive and defensive � � what they can borrow, not � to criticism, and has contributed to � � what they have coming in � their entitlement and consumerism. � May not actively take control of Parents may have blamed bad teachers, not � � their money � them, for bad grades, which is both a � May blame others for money � sign and contributor to their issues � � problems “Had bad luck with � accepting responsibility. � � your credit?” � May focus on current needs � May not anticipate future needs
From Layaway to Bitcoin ; Generational Issues in Financial Literacy Dr. Mark Taylor www.taylorprograms.com Generation NeXt (cont.) Financial Coaching with Gen NeXt The cover story on TIME May 20, 2013 was � College is a good investment and � of the Me, Me, Me Generation who � � worth some borrowing, but � are “lazy, entitles narcissists who still � � only if you are � frugal with � live with their parents.” � � borrowed money and if you � � finish According to Arthur Levine and Diane Dean � Are you a good good fit with college/ � in Generation on a Tightrope, they are � this college? � � coddled, protected, dependent � � Academically ready? � � help seeking � � Ready to invest the time? � � immature, praise dependent � � Do you like “school”? � � have the most inflated high � Are you a good fit with a career that � � � school � grades � requires a degree? � � weak academically entering � � Lots of skilled trades careers � � � college. � � do not � require bachelors year � � degree The are very digital, may be web/ device � dependent or addicted, Academic/ persistence success interventions � confuse what they know with what If Financial Literacy professionals are going � they can find and their abilities with to be working with students around � their ability to use an app. borrowing, credit, money issues that are impacted by academic success, they can/ Financial Literacy Training with Gen NeXt should talk about what facilitates � Academically simple academic success and persistence � � reading, math � Remedial classes completed before � Low effort/ tech rich � � credit classes attempted � Easy and fun � Remedial Summer � � Games? � � take remedial classes/ engage � � � if they are interactive, � � in remediation activities during � � � not just entertaining � � the Summer after Senior year � Praise heavy � � to be ready for college classes � “Future orientation”- shove into � � in the Fall (often called Bridge � � realistic future � � Programs) � � “Typical” earnings � Student success classes � � Don’t expect typical data to be � � “Freshman Seminar” � � persuasive � Use of academic and support � Active � � services � � Interactive if F2F � Contracting? � “The Magic Dollar” � � It may be appropriate to � � The dollar that you don’t � � contract with students for � � spend at 23 becomes many � � certain future academic � � more dollars later � � behaviors to be able to � � borrow.
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