SMCU Money Masters - Winter 2008 - (Page 15)

money management Who is Gen Y? There’s a lot of dispute about what age group technically constitutes Generation Y, but, generally, members were born as early as 1977 and as late as 2000. Generation X was born roughly 1965 to 1976. Narrower definitions put Gen Yers as those ages 18 to 29, born from 1978 to 1989. This generation is about 80 million strong and technically savvy, and say passion is the No. 1 factor in deciding their career path. Here’s what a few had to say about what’s important to them: “Timeliness. If there’s anything I hate, it’s a process that takes an excruciatingly long amount of time.” Sam, 29, filmmaker “Whether or not there’s a branch nearby.” Teresa, 24, student “I look for good customer service. Do you they understand my needs?” Rosina, 26, writer “I enjoy being able to call up my credit union and always be able to get a live person on the other end who can give me practical and easy solutions to my financial problems.” Mike, 23, software analyst GEN Y BANKING We asked members of Generation Y what’s important to them in a financial institution and what advice they’d offer the rising generation. According to a post on USATODAY.com, Gen Y is smart, young and brash. They wear flip-flops to the office and listen to iPods at their desk. They want to work, but don’t want work to be their life. And according to a study by the Pew Research Center, their biggest goals are wealth and fame. Unfortunately, however, Gen Y’s greatest challenges are money, finances and debt. Most of their ties to a financial institution don’t go beyond a savings account and an ATM card. An individual in their 20’s is at the ideal age to start saving and investing. The young, 20-year-old adult has virtually nothing to lose, but many college students and younger workers let their fear of financial planning dictate their moves. A simple choice for the average Gen Yer is to put all or most savings into a 401(k) that automatically sets aside money each month or quarter. Gen Y 401(k) investors have only saved an average of $3,200, according to Hewitt Associates, an employee benefits consulting firm. The credit union can help distribute and invest funds designated for savings in the best way possible. You can help your Gen-Yer to discover security by assisting them to develop a financial strategy now, and a consultation with your Credit Union may be the first place to start. Everyone will benefit! What They Wish They Would Have Known “I wish I would have learned about credit and credit scores sooner. I’ve learned to pay my bills on time, and not overextend myself, but also to not completely forgo credit either. If I manage my credit well it will make a huge difference in where I can afford to live.” Corey, 26, medical student “I wish I would have learned about a 401(k) in high school. I’m just starting to manage one. I’ve also learned to not be so cautious about my money. To do my homework and then take risks at investing my money.” Jennifer, 25, brand manager “My advice to the rising generation: Don’t spend outside your means. If you decide to use credit, make sure that the amount is something you can payoff with your next check or that you can pay off within two months.” Cassandra, 22, student “I have a checking account, a savings account, and a Roth IRA that a roommate who was a financial planner suggested I set up and a mere $100/month goes into that. But I certainly feel like I have a lot to learn about finances.” Jake, 27, student What’s Important to Gen Y? Almost all of the Gen Yers that we interviewed said the following were important features in a financial institution: • The ability to receive statements online, not via the mail. • The ability to apply for loans online or through a call center in the evenings or on the weekends. • An institution that offers debt consolidation, credit counseling and credit cards. • Solutions for saving for a mortgage down payment. WINTER 08 15 http://www.USATODAY.com

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SMCU Money Masters - Winter 2008 Contents Tech Tips Community Connection What’s Next? Motley Fool: A Tale of Two Borrowers Jean Chatzky: Extreme Jobs Member Tips Money Management

SMCU Money Masters - Winter 2008

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