By Samuel Rosenberg
KEEPING a job for life, concerns about the environment and the need to shop today and pay tomorrow are just some of the many differences in attitude and reaction between the parents of generation Y individuals, millennials and their children. In particular there is a marked difference in attitude towards money.
Around 75% of the world’s employees are younger people, known as generation Y or the millennial generation. The prospects for financial prosperity are not nearly as encouraging for these generations, who hold extremely high expectations. They are motivated in a very different way to their parents and are largely influenced by a culture of materialism and consumerism where products and service are driven by the marketing strategies of local and global companies and businesses.
One of the key differences between these generations is that the parents will be seen as careful, conservative. They will be prudent in their spending and try to spend from within their savings, rather than seeking loans, credit cards and debts. Millennials have a tendency to spend money irresponsibly.
The responsibility of educating your children lies with the parents and others with power and authority. With simple explanations it is easy to speak to your children to introduce them to the standards that you would expect. Should you fail, you may be building wealth which will be abused and dissected quickly, when you are gone.
Young people have a need to understand the difficulty in earning money and that the easy way is not always the right way because it may lead to troubles in the years ahead.
Innovation and creativity is found to be easier and better controlled when individual’s ambitions are removed from the need for instant gratification.
The future will always hold periods of great financial boom, with bust following soon after. Experts already know that there are not enough jobs around the world to employ all of the people seeking employment. This means that while some will earn sufficient funds to be able to purchase any item they want immediately, whether on credit or not, there are many on low incomes and out of work, which also require the latest mobile phone and tablet computer, with the right to update regularly.
The current younger working generations are more educated than their parents academically, and in the need to understand how to plan and budget as a family, to prepare to purchase a home and introduce their own children into the world. Nevertheless, relatively high unemployment is against them.
While home values may increase over the years, the cost of living often rises at a higher rate and often exceeding increases in take-home pay. Millennials will provide a strong work ethic and a better devotion to environmental issues, but they also insist on moving up the workplace ladder far quicker and with less experience than their parents.
Because of the availability of information and communication, millennials believe they are better skilled than previous generations. They provide a temporary loyalty to their organisation and expect managers to work with motivation, coaching and encouragement rather than shouting and using the position as power. For those millennials that are able to understand the benefits and disadvantages of their parents and current employment issues and financial control, the future will continue to look good.
Samuel Rosenberg is the founder and CEO of Axcel Finance Ltd., the leading regional microfinance institution. Share your thoughts and email your questions to firstname.lastname@example.org