Growing up my parents would joke that my great grandma hid money between the plates in her china cabinet. While this might sound strange, I would have to bet that many of you have heard similar stories from the elders in your family. As odd as this may sound I’m sure we can all agree that after going through the Great Depression, our grandparents had a pretty good reason for this strange behavior.
As the generation who will best remember our country’s recent recession, how does this economic dive effect the way we handle our money? A recent study by the Associated Press indicates that Americans lost an average of one-third the value of their assets during the lowest part of the recession. Since then over half have stated that they no longer worry about their finances. The same number of Americans, say they now feel more prepared for retirement and there has been a forty-two percent increase in retirement account contributions. Just about half of the population has built some kind of emergency fund and seventy-eight percent of people now feel they are better prepared for their future after the recession.
Now this survey was done on adults over the age of 25, but how do you think Generation-Y will be affected by the recession. Will we have as much credit card debit as our parents? Will we rely less on social security? Will we start saving for our children’s college educations way earlier in the game? No matter how the recession may have affected us, we all have a unique opportunity to learn from this recent financial crisis. We can all pass this knowledge on so someday our grandkids can make fun of US for doing something as ridiculous as hiding cash between our own fine china.
Until next time,