Generation Y: a brief synopsis and their reaction to the events of Septemper 11th.

Montgomery, Robert D. ; Blalock, M. Gale ; Paxton, Graham T. 等

ABSTRACT

While members of a generation have different characteristics and values than their peers, they often share similar values that are rooted in the times in which they grew up. The purpose of this manuscript is to explore how family, occupational, financial and societal values of Generation Y have changed since September 11, 2001. The results indicate that community service and family are more important. Regarding careers, the results indicate that income is less important while job independence is more important.

INTRODUCTION

Generations are quite difficult to define. Not every member of a generation shares the same characteristics as his or her peers. With that being said, generations with the strongest degree of cohesiveness are due in large part to the times in which they grew up. The Great Depression, WWII, and Vietnam affected the entire nation, and thus, young people growing up at these times formed strong beliefs and sentiments based upon their own experiences of handling these dilemmas.

Before September 11th, 2001, the Vietnam War was the last major issue to grab the attention of the entire nation. AIDS was a major issue of the 1990s, but many people failed to pay attention to it because they had not been directly affected by it. The consequences of September 11th were and are unavoidable. This catastrophic event has re-shaped the values and beliefs of many Americans.

Young people are generally impressionable and prone to change because they are not yet sure what they believe in--September 11th has unquestionably altered the values and reorganized the priorities of many young Americans. The purpose of this manuscript is to explore how family, occupational, financial, and societal values of Generation Y have changed since 9/11. But before we can examine how they have changed since this tragedy, we must look at the group as a whole.

GENERATION Y

Born during a baby bulge between 1979 and 1994, Generation Y is 60 million strong which is three times bigger than the preceding generation, Generation X (born 1965-1979). They are the second largest generation in American history, trailing only their parent's generation, the Baby Boomers, whose population size is 72 million. They are as young as 8 and as old as 23, with the largest slice still a decade away from adolescence.

With monikers including Nexters, Echo Boomers, the Net Generation, and Millennials, Generation Y has never known a world without cellular phones, computers, compact discs, and video games (Hatfield, 2002). In fact, roughly half of Gen Y consider themselves 'regular cell phone users' (PC Magazine).

Generation Y is not afraid or intimidated by the rapid pace of technological innovation. Recently, DVD players have replaced VCRs, and audio compact discs have been outmatched by the simplicity and cost-effectiveness of downloading music off of the Internet.

While Baby Boomers mistrust advertising, Gen Y embraces it--if it's witty and not condescending (Khermouch, 2002). To them, advertisements can be a form of entertainment, as long as they do not feel as if they're being patronized.

Gen Y has more discretionary income than any generation before it, and marketers today are constantly trying to keep up with the latest trends and fashions in an effort to keep Y happy (and loyal) to their brand. Y spends in excess of $600 billion annually and is currently forming brand preferences that could endure for decades. Their tastes have begun to 'shape' the marketplace (Christian Century).

A fact that mustn't be overlooked is the reality that Generation Y is the most multicultural, diverse generation ever (Halliday, 2002). Kids today have more tolerance--and are less bigoted--than the generations before them. Their worlds are broader and their minds more open to foreign ideas and customs. Meanwhile, after their schooling, the current plethora of international business ventures has opened the door for eager American graduates to seek employment overseas or for 'international' corporations.

Basically, Gen Y is walking, talking and acting like adults far sooner than previous generations did. They have style, individuality, and attitude (Sewell, 2002). They don't 'play telephone'; they purchase a Cingular and call their best friends from the GAP store at the mall. They're independent and they know what they want. They seek relationships with brands, people, and ideas that cater to their changing interests (Colkin, 2001). As mentioned earlier, they have money and are very influential in household purchasing decisions.

Concerning income and spending, research conducted by the U.S. Labor Department on teenagers has led to the following figures:

Where teens get their money:

81% receive allowance or ask parents

54% have savings accounts

44% do chores or odd jobs

36% have after school or part-time jobs

Teens monthly spending per category:

$300 on food

$200 on clothes

$50 on video games

$40 on movies

$25 on music

$15 on movie rentals (Thomaselli, 2002)

UPON ENTRANCE INTO THE MARKETPLACE

Today, the oldest members of Gen Y are coming of age. Presently, following the natural progression of our society, 18 to 21 year olds are either in the throws of initial employment or sitting in their college classrooms, itching to get out. By outside observers, Gen Y has been described as 'Gen X on fast-forward, with self-esteem.' Y shares many of the same characteristics as X--they are ambitious, technologically savvy, and protective of maintaining a healthy balance between their personal and professional lives. However, members of Generation Y are more likely to be blessed with a spirit of altruism, schooled in teamwork and fairness, and interested in renewing the lost sense of decorum in the American workplace (Lovern, 2001).

Like Gen X, Gen Y is sensitive to how a job improves and adds to their personal portfolios of skills and capabilities. But unlike their predecessors, Gen Y has been primed for healthy relationships with older, more experienced advisors. Gen X felt alienated and preferred to be given a job and be left alone to accomplish it. Y 'will drain their mentors dry' (Lovern, 2001). Having grown up in an era of 'group work' in their classrooms, Y has formed strong teamwork and networking skills. They are very good at using other people as resources, and vice versa.

Gen Y has been marked by an increased sense of self-worth and optimism, but it does come with a price. These newest entrants to the workforce are more likely to unabashedly express and act on their concerns. Though they are comfortable with authority, that authority must be competent and have integrity. Y's inherent altruism includes the interest that peers are taken care of as opposed to being ignored or run over (Lovern, 2001).

THE INTERNET--KNOWLEDGE BREEDS POWER

Gen Y is tech-smart. Born into the Internet Age, today's teenagers embrace Internet technology the way Boomers did television (Colkin, 2001). They appreciate clever ways of promoting a product, but they're assertive consumers and skeptical of marketing that seems 'too good to be true.' They prefer to independently research products (often times on the internet) once they hear promises made in ads.

Gen Y has cash, but its power goes beyond its spending. Napster showed how young people who aren't tied to old business models and values can take control of what's marketed to them and exploit the Internet to change the rules of commerce (Colkin, 2001). The whole record industry had to change because of what these 'kids' were able to do.

THE FINANCES OF THE FUTURE

People under the age of 35--a fat chunk of Generation X plus the older members of Gen Y--are the likeliest to turn to banks for nontraditional products and services, according to the 2002 American Banker/Gallup Consumer Survey (Gjertsen, 2002). More than 80% of the respondents expressed interest in obtaining at least one nontraditional product offering from their commercial banks. In order of interest, the services they named include:

Stocks, Bonds, or Mutual Funds 54%
Brokerage Services 45%
Annuities 38%
Life Insurance 34%
Property/Casualty Insurance 34%

Not surprisingly, Gen Y and Gen X are also more likely to use computers to track their financial accounts and bank online. More than 57% of the under-25 respondents have done so (Gjertsen, 2002).

Industry insiders and analysts say banks that ignore these younger people are making a big mistake. Some banks have seen the light recently and have begun to target different products to different age groups and develop new products for the younger audience. But on the whole, this is not the industry standard. 'It's not that banks are rude to them,' one expert said. 'They are basically waiting for them to turn 45 or 50.' Banks generally focus mostly on high-net worth customers, but, as baby boomers pass their wealth on, the need to attract the younger generations will become clear (Gjertsen, 2002). Failure to do this could come back to haunt banks in future years, when Generation Y turns to other sources of financial products and advice.

The under-35s are much more willing to appreciate the benefits of technology and not be so focused on the risks--they feel more secure making online transactions. Experts agree that E-Trade and other financial companies that have latched on to younger people's interest in online transactions are poised to become the financial providers of choice for Generation Y (Gjertsen, 2002).

Another reason younger customers have more interest in financial planning and technology is their concern about the future of Social Security and the realization that they will be responsible for the bulk of their retirement savings. 'Necessity is the mother of invention' (Gjertsen, 2002).

BUT ARE THEY READY??

Younger customers are probably less scared about the intricacies of American finance because they have no memory of problems with the banking system. 'If you look at, for example, the financial holdings of people who have a memory of the Depression, it's not uncommon for them to have accounts in 10 or 12 different banks. They remember when banks failed and you couldn't get your money' (Gjertsen, 2002). Financial decisions are based largely upon the times in which we are living.

Some authorities in the field say that, although Generation Y is rolling in the cash and willing to do business online, many of them might not be well ... um ... like ... smart enough to do it.

We live in the largest capitalist nation in the world, and our children graduate from high school without a clue about finances. Bankruptcies (in the under-25 sector) have increased over the last couple of years, and much of the blame can be attributed to the fact that many college students are misusing their college loans and credit cards (Godfrey, 2002).

Federal Reserve chairman Alan Greenspan recently said that America's children are ill-equipped to inherit the global economy unless the private business sector partners with educational institutions to begin financial literacy education in primary schools (Godfrey, 2002). Mr. Greenspan makes a compelling point--and this sounds like a wonderful program... for Generation Z. Meanwhile, the bulk of Generation Y is left to fend for itself.

EFFECTS OF SEPTEMBER 11TH, 2001

No one needs an explanation of what happened on this date. The consequences from the disaster that occurred that day will be felt for many generations to come.

METHODOLOGY OF OUR SURVEY

A survey was conducted on respondents born between 1981 and 1986 in Evansville, Indiana one year before and one year after 9/11/01 to see if their values and/or priorities have changed since the attacks of 9/11/01.

The survey consisted of attitudinal statements where the respondent provided the relative level of agreement or disagreement for each. The following scale was used:

1 = Strongly Disagree

2 = Disagree

3 = Indifferent or Neutral

4 = Agree

5 = Strongly Agree

n/a = not applicable

FINANCIAL WEALTH AND OCCUPATION

The results of a series of ANOVAs that were performed on financial wealth and occupations can be found in Tables 1 and 2. The questions that yielded significant differences between the pre 9/11 and post- 9/11 samples include:

Question FW #8--'Society will pay for the government's budget deficit by paying higher taxes in the future.'

For this question, the mean difference was significant at the .046 level. The results indicate that Gen Y believes this statement to be MORE true than it was 2 years ago. Apparently, Gen Y currently feels that our government should be more responsible in their spending. Defense spending has increased since the attacks, and it's possible that America's youth is worried about paying the price for this when they begin to pay their annual taxes. The results of this question indicate that Gen Y has less faith in the government than it did in the year 2000. September 11th (obviously) could have been a major factor in lessening the confidence that America's youth has in the government's ability to work with a balanced budget.

Question FW #9--'I expect social security and a company retirement plan to adequately meet my retirement income needs.'

For this question, the mean difference was significant at the .000 level. The results indicate that Gen Y believes this statement to be MUCH LESS true than it was 2 years ago. Apparently, Gen Y has less confidence in America's social security system and, thus, will be taking other measures to ensure a stable retirement income. Gen Y will invest heavily in the stock market and other investments, and saving will be much more prevalent than it was in previous generations. September 11th surely made it evident to Gen Y that our nation is imperfect and vulnerable and, as mentioned before, defense spending has and probably will continue to increase to prevent further such events from happening. Coupled with the retirement of their parents (the Baby Boomers) social security will take a hard hit if this happens and, by the time Gen Y would be reaping the benefits of this service, there is a strong possibility that it will not even exist. In addition, company retirement plans may have to take a back seat to wage increases, etc. Whatever the case may be, America's youth does not feel secure about relying on outside sources to provide for them in the future.

Question FW #10--'Parents have a responsibility to provide a financial foundation for their children (e.g., inheritance, gifts).'

For this question, the mean difference was significant at the .005 level. The results indicate that Gen Y believes this statement to be MUCH LESS true than it was 2 years ago. This question relates closely to question FW #9, and, accordingly, so do the explanations for its results. The youth of America (post-Sept. 11th) wants responsibility, and providing for themselves satisfies them internally.

Question O #4--'My job/career must provide a high level of income.'

For this question, the mean difference is significant at the .021 level. The results indicate that Gen Y believes this statement to be LESS true than it was 2 years ago. Because of Sept. 11th, Gen Y's occupational priorities may have shifted from financial rewards to intrinsic rewards such as satisfaction or helping society. The terrorist attacks showed that life can end abruptly, without warning. It doesn't matter how much money a person has/saves if they are not alive to enjoy it. Gen Y is making sure that they save for the future, but they are not disregarding happiness in their employment. After all, people save money to ensure future gratification--Gen Y says 'Why not try to be happy today?'

Question O #5--'My job/career must provide a high degree of independence.'

For this question, the mean difference is significant at the .032 level. The results indicate that Gen Y believes this statement to be LESS true than it was 2 years ago. This might be explained by a shift in occupational priorities as well. Independence is often correlated with instability in a job/career, and it is highly possible that Gen Y is now more concerned about the security of their jobs.

SOCIETY AND FAMILY

The results from a series of ANOVAs on society and family is reported in Tables 3 and 4. The questions that yielded significant differences between the pre 9/11 and post- 9/11 samples include:

Question S #5--'Involvement in community improvement activities is my responsibility.'

For this question, the mean difference was significant at the .032 level. The results indicate that Gen Y believes this statement to be MORE true than it was 2 years ago. The overwhelming support from the American people following the disaster of September 11th likely inspired many people in this country to help out in their own communities. Sept. 11th was a wake-up call to the entire nation, and Generation Y is no exception. Maybe they also want to 'reconnect' with the natural world that they've been taking for granted and taking advantage of for so long. Whatever the case may be, the tragedy of 9/11 has opened our eyes to the situations in our own communities that could greatly use our help. Gen Y has definitely seen this and, hopefully, this attitude will not fade anytime soon.

Question S #6--'My generation is less likely to 'give something back' to society than our parents and grandparents.'

For this question, the mean difference was significant at the .041. The results indicate that Gen Y believes this statement to be LESS true than it was 2 years ago. Basically, the result for this question is such because of the high possibility that many Gen Y members have already (and recently) partaken in volunteer activities.

Question F #5--'My parents have been through a divorce.'

For this question, the mean difference was significant at the .000 level. The results indicate that Gen Y believes this statement to be MUCH LESS prevalent than it was 2 years ago. Frankly, there is no strong conclusion that can be drawn from this result. A large number of the persons we surveyed this year simply (yet coincidentally) have different family backgrounds from those persons surveyed 2 years ago.

Question F #6--'Divorce is an acceptable way to end a marriage if the couple elects to do so.'

For this question, the mean difference was significant at the .000 level. The results indicate that Gen Y believes this statement to be MUCH LESS true than it was 2 years ago. Although the result for this question relates strongly to the result from question, F #5, a fairly solid conclusion can be drawn from this data. Divorce has lost much of its acceptability. The post-Sept. 11th Gen Y that we surveyed seems to care much more about finding true love and maintaining a healthy relationship with their spouses.

CONCLUSION

September 11th could have been a major factor in lessening the confidence that America's youth has in its government. Civil rights have been sacrificed for the sake of security--(airline searches, bugged phones, etc.). Due in part to the attacks and consequent war/war threat, consumer spending was slowed to a halt and confidence was, and still is, shaky at best. 9/11 has undeniably altered the principles and reorganized the priorities of Generation Y.

Gen Y currently feels that our government should be more responsible in their spending. Defense spending has increased since 9/11, and it's possible that Y is worried about paying the price when they begin to pay their annual taxes. Y has very little confidence in America's social security system and, thus, will be taking other measures to ensure a stable retirement income. They will likely invest heavily in the stock market and real estate and saving will be much more prevalent than it was in previous generations. Y does not feel secure about relying on outside sources to provide for them in the future. They feel that they will have to provide for themselves.

Gen Y values happiness and inner satisfaction as well as money as a key factor in determining employment. Y is comfortable with less independence in their careers as long as they're happy with their jobs. September 11th likely inspired many people in this country to help out with their own communities. Gen Y seems to care much more about finding true love and maintaining a healthy relationship with their spouses since 9/11.

Generations with the strongest degree of cohesiveness are due in large part to the times in which they grew up. September 11th clearly and visibly affected us all, and in the end, Gen Y will be a strong generation because of the togetherness they've experienced and the value-shifting they've inevitably undergone.

CAVEAT

Despite the priority shifting that has been noted since 9/11, interpretation of these results should be guarded. First, the recession, high unemployment, a return to deficit spending, and the crash of the stock market all confound these results. This is the first bad economy in Gen Y's life and is probably at least partially responsible for some of the shifting in values. Secondly, these respondents are now two years older and hopefully two years more mature. This increased maturity may be the cause of value-shifting. Some researchers doubt that the observed differences are due to the terror attacks. Ebenkamp argues that it has had surprisingly little impact on (supposedly impressionable) young adults. In fact, Sept. 11th's most significant impact on Gen Y could be its role in solidifying Y's core traits--including having a civic purpose, possessing grand ambitions, and feeling optimistic about the future. According to expert William Strauss, major public events such as the terrorist strikes tend to crystallize a generation's developing characteristics rather than direct them down a different path (Ebenkamp, 2002).

When the Twin Towers fell, the adult world rocked, but a prior event foreshadowed this violence for Gen Y, thus molding them before Sept. 11th had a chance to do so. Strauss argues, 'The Millenials (Y) had a Sept. 11th before the rest of us, and it was called Columbine.' The 1999 school shooting had a major impact on young peoples' day-to-day lives, and, while they were already the most watched-over generation of children, they endured anxiety over post-Columbine safety and threats to their carefully constructed worlds. Schools sacrificed freedoms and creativity for the sake of security just as Americans have watched homeland security trample their civil liberties (Ebenkamp, 2002). As a result, Gen Y may have been the most able to deal with the blow of 9/11 and, thus, was not as affected by the events as other generations were.

REFERENCES

Anonymous. (2000). Generation to generation, The Christian Century, 8 Nov, 1139.

Anonymous. (2001). Pipeline--Back to basics, PC Magazine, 6 Mar, 71.

Colkin, E. (2001). Kids these days, Information Week, 12 Feb, RB1.

Ebenkamp, B. (2002). Why aren't they worried? Brandweek, 9 Sept, 29.

Gjertsen, L. A.(2002). Young seem hot prospects for nonbank products, American Banker, 23 July, 4A.

Godfrey, N. (2002) The 'duh' generation, ABA Banking Journal, Apr, 47.

Halliday, J. (2002). Headlights shine on younger buyers, Advertising Age, 8 July, ps-6.

Hatfield, S. L. (2002). Understanding the four generations to enhance workplace management, July/Aug.

Khermouch, G. (2002). Didja C that Kewl Ad? Business Week, 19 Aug.

Lovern, E. (2001). New kids on the block, Modern Healthcare, 29 Jan.

Sewell, C. (2002). Understand that you will never understand, Wireless Review, Jun.

Thomaselli, R. (2002). Keeper of the flame, Advertising Age, 23 Sept, 16.

Robert D. Montgomery, University of Evansville M. Gale Blalock, University of Evansville Graham T. Paxton, University of Evansville

Table 1: Analysis of Variance, Dependent Variable = Financial Wealth

Variable Attitudinal Statements F-Value P-Value

FW1 Personal financial security is an .871 .352
 important goal for everyone
FW2 I will be wealthier than my parents .002 .965
FW3 I will reach financial independence by .097 .755
 the age of sixty-five
FW4 My generation is less fearful of debt .877 .350
 than our parents and grandparents
FW5 I am taking steps now to plan for my .969 .326
 future well-being
FW6 I trust others to make financial 2.649 .105
 decisions that affect my future
 financial well-being
FW7 Society will pay for the government's 2.856 0.0902
 budget deficit by consuming fewer
 government services in the future
FW8 Society will pay for the government's 4.031 .046
 budget deficit by paying higher taxes
 in the future
FW9 I expect social security and a company 20.060 .000
 retirement plan to meet my retirement
 income needs
FW10 Parents have a responsibility to 7.870 .005
 provide a financial foundation for
 their children
FW11 I can manage my own financial affairs 1.628 .203
 (e.g., taxes, investments, savings)

Table 2: Analysis of Variance, Dependent Variable = Occupation

Variable Attitudinal Statements F-Value P-Value

O1 A balance between my personal life and .723 .396
 professional life is an important one
O2 My job/career must provide a high level .196 .658
 of self-satisfaction
O3 My job/career must provide a high level 1.137 .287
 of social status
O4 My job/career must provide a high level 5.372 .021
 of income
O5 My job /career must provide a high 4.644 .032
 degree of independence
O6 My generation will be more willing to .006 .940
 assume risk in order to achieve
 professional goals than our parents
 or grandparents
O7 My generation possesses an .010 .921
 entrepreneurial spirit that is
 greater than that of our parents or
 grandparents

Table 3: Analysis of Variance, Dependent Variable = Society

Variable Attitudinal Statements F-Value P-Value

S1 I do volunteer work because I am forced .292 .589
 to
S2 I do volunteer work because I want to 1.128 .289
S3 Societal norms (i.e., what others are .036 .849
 doing) influence my consumer choices
S4 My generation will be successful in 2.169 .142
 addressing some of societies problems
 (e.g., deficits, poverty) facing the
 U.S. today
S5 Involvement in community improvement 4.672 .032
 activities is my responsibility
S6 My generation is less likely to 'give 4.206 .041
 something back' to society than our
 parents or grandparents
S7 Today, people are becoming more reliant .623 .431
 on the government and less reliant on
 themselves than previously in our
 history

Table 4: Analysis of Variance, Dependent Variable = Financial Wealth

Variable Attitudinal Statements F-Value P-Value

F1 I expect to marry in the next 10 years 1.320 .252
F2 I expect to become a parent in the next 1.327 .250
 10 years
F3 I expect to share household work with .064 .801
 my spouse
F4 I want to establish my career before 2.552 .111
 having a family
F5 My parents have been through a divorce 21.815 .000
F6 Divorce is an acceptable way to end a 15.670 .000
 marriage if the couple elects to do
 so
F7 Divorce rates will decrease in the .625 .430
 future
F8 I expect my employer to provide .563 .454
 assistance to help me meet my family
 and childcare needs/extended sick
 leave