Taking all of the elements that mark this generation, it is easy to see why the Millennials would be so hesitant to adopt the classic vision of the American dream as their own. A delicate balance exists between income and borrowing, this line drives spending and directly influences the economy. Having a feeling of income uncertainty and fear of debt both contribute to the average Millennials’ minimalist standard of living.

Influencing the Economy

It’s no surprise that the same generation that is saving and living at home with their parents or renting apartments, doesn’t contribute to one of the leading industries in the country—home building. The housing industry is an important driver economic growth. Due to the current mortgage crisis, many Millennials have witnessed their Baby Boomer parents lose and/or downsize their homes. They had to observe as their parents’ 401(k) plans were cut down, as they lost money on investments and arguably the most impactful, they had to watch as mom and dad spent their hard-earned savings on their post-secondary education. All of these happenings are psychologically and financially shaping Gen Y, making them the most risk-averse generation; saving money instead of investing it.

There is power in numbers, don’t count the Millennials out just yet. As the largest generation prepares to accommodate with economic times, one thing should remain on their forefront: hope. According to a recent U.S. Bureau of Labor Statistics report, Millennials will make up the majority of the workforce by 2015, and by 2030 they will constitute 75% of the workforce (cite).

Standing at 86 million, Millennials will vastly influence the shift from the Great Recession to recovery. These contemporaries are shaping consumer behavior through their involvement in the digital world, including online shopping and socializing on networks such as Facebook, LinkedIn, and Twitter. They are evolving, becoming a powerful force in the country’s resurgence and are on the path to saving our economy. Although progress may not be moving at the conventional pace, a transition is taking place right before our eyes. After all, we never did see Clark Kent turn into Superman.

Much has been said, written and certainly yet to be written about the Millennials. As Riverview Capital begins to work with many of the motivated members of this generation we will positively attest that they are engaged in society, politics, and business and well aware of their financial responsibilities. We are truly optimistic about what the Millennial generation will accomplish.

SOURCES:

1.       http://www.mainstreet.com/article/money/investing/gen-y-develops-depression-era-mentality

2.       http://www.pewresearch.org/daily-number/baby-boomers-retire/

3.       http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to-change/

4.       http://www.pewsocialtrends.org/2010/12/20/baby-boomers-approach-65-glumly/

5.       http://ca.finance.yahoo.com/blogs/pay-day-/inflation-gen-y-no-idea-coming-191511340.html

6.       http://www.socialmarketing.org/newsletter/features/generation3.htm

7.       http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to-change/

8.       https://www.lordabbett.com/advisor/commentary/economicinsights/the-future-in-focus-our-demographic-destiny/

9.       http://www.huffingtonpost.com/ryan-donegan/millennials-generation-frustration_b_3977145.html?view=print&comm_ref=false

10.    http://www.huffingtonpost.com/ryan-donegan/millennials-generation-frustration_b_3977145.html?view=print&comm_ref=false

11.    http://www.foxbusiness.com/personal-finance/2014/01/29/millennials-most-risk-averse-generation-since-depression-era/

Contributors: Alan Arcadipane is a Business Analyst of the Business Advisory Group at Riverview Capital Advisers. Henry Wilson is an Investment and Business Analyst of the Business Advisory Group at Riverview Capital Advisers. Melysa Latham is a member of the Business Advisory Group at Riverview Capital Advisers.