Recessions have consequences, and the Great Recession of 2008 may have produced one of the most influential consequences of all: the millennial mindset. Because of their early experiences in the “real world,” this generation is poised to have long-term significance — comparable to baby boomers — in work, play and politics. If you think boomers drove changes, just wait and see what millennials have in store. To put it in millennial terms, “Hold my avocado.”

It’s been more than 10 years since the onset of the Great Recession. During that timeframe, millennials ranged in age from 12 to 27. Even the youngest were old enough to understand the impact of parents losing their jobs, not being able to make mortgage payments and, within a few years, feel the effects themselves when having to pay for college through student loans. Not only was their financial security threatened, but their future also looked bleak with a poor job market and low wages. Today, millennials are grown and still playing financial catch-up.

One of the best ways to deal with economic consequences is to prepare for them beforehand. That means saving during the good times in preparation for another weak economic cycle. If we can help you or the millennials in your life develop a savings strategy or help plan for retirement income, please give us a call.

In recent months, the Federal Reserve published a report observing that the millennial generation lacks the income and assets — in other words, economic power — comparable to consumer spending habits of previous generations. This is important because consumer spending is one of the driving forces of economic growth. Not only does this generation see relatively low wages and work for others, but they are less inclined to start their own businesses. Today, only 0.22 percent of millennials start a new business in any given month, compared to 0.37 percent of baby boomers, and they generate less annual business revenue.

We tend to think of millennials as a singular generation but, much like baby boomers, the demographic comprises two groups: older and younger. Older millennials suffered the most from the last recession, as they lacked upwardly mobile job and income opportunities. Younger millennials came into their own during the recovery phase, so they are not quite as far behind. However, in terms of financial consequences, the two groups share a common trait of risk aversion and carry substantial student loan debt.

In the corporate world, millennials are agents of change. By this time next year, they will represent 50 percent of the U.S. workforce, and their size alone can wield substantial power. They expect instant information, results and gratification, meaning they will insist companies stay up-to-date with advanced technology and automation — not necessarily a bad influence.

In fact, older employees in the workplace are poised to benefit from millennial tendencies. While it’s easy to cry, “I didn’t get that perk when I was their age,” it’s worth recognizing that you can benefit from it now. One of the hallmarks of the millennial approach to work is that they expect to be valued and well-rewarded for hard work; a standard that older employees may use as well. Companies also are deploying new benefits to compete for millennial talent, including

top-ranked perks and incentives, such as:

  • Recognition
  • Wellness benefits
  • Work-life integration
  • Student loan assistance

When it comes to politics, millennial voters tilted Democrat when entering adulthood — a trend that continues to grow as they age. Today, 59 percent of millennials identify as Democrats and 32 percent as Republicans, and more members of this demographic identify as Independents than in older generations.

Content prepared by Kara Stefan Communications.

1 Raisa Bruner. Time. Aug. 9, 2017. “‘Hold My Avocado’ Is the Viral Catchphrase Millennials Have Been Looking For.” Accessed June 24, 2019.

2 Venessa Wong. BuzzFeed News. Sept. 25, 2018. “Here’s How Millennials’ Lives Were Changed By Recession 10 Years Ago.” Accessed June 24, 2019.

3 Jared Hecht. Forbes. Jan. 15, 2019. “How The Great Recession Killed The Entrepreneurial Spirit Of Millennials.” Accessed June 24, 2019.

4 Hillary Hoffower. April 4, 2019. “The Great Recession split the millennial generation down the middle, creating 2 groups with very different financial habits.” Accessed June 24, 2019.

5 Tejas Maniar. Mayfield Fund. March 25, 2019. “Benefits Trends for the Millennial Workforce.” Accessed June 24, 2019.

6 Denise Power. Columbus Chamber of Commerce. March 21, 2019. “The Millennial Mindset: Employee Benefits for the Workforce’s Largest Generation.” Accessed June 24, 2019.

7 Pew Research Center. March 20, 2018. “Trends in party affiliation among demographic groups.” Accessed June 24, 2019.

Standard Disclaimer.

Advisery services offered through Lake Point Wealth Management, LLC, an SEC Registered Investment Adviser. Insurance products and services offered through Lake Point Advisory Group, LLC. It is important that you do not use e-mail to request, authorize or effect the purchase or sale of any security or to effect any other transactions. The information transmitted herein and any attachments or files transmitted herewith may contain proprietary, confidential and/or protected, non-public information, are covered by applicable state and federal laws and are intended solely for the use of the individual or entity named above as the intended recipient. If the reader of this message is not the above-named intended recipient, or his/her/its agent, be advised that any review, disclosure, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify the sender by telephone or e-mail and destroy the material forwarded in error. Nothing in this communication shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. Recipients should be aware that all emails exchanged with the sender may be archived and may be accessed at any time by duly authorized persons and may be produced to other parties, including public authorities, in compliance with applicable laws.