Isn't this just eerily reminiscent of what happened with depression babies?
Widespread, extended, negative macroeconomic event happens. Those experiencing these events at crucial development points in their lives (childhood, early adulthood) adjust their livelihoods to compensate. Even when the negative effects disappear, behavioral patterns have been set in stone.
Sure, there are obvious differences, e.g. we sometimes still fritter away our money on electronics we probably don't really need. Still, I think the similarities are pretty striking. We're a lot more like our grandparents than our parents.
As for the article, I think the car/housing situation is probably a really simple one to explain: millenials know first-hand how crippling debt can be (in the form of student loan debt). Even those lucky enough to escape that can see how awful it's been for our cohort.
Most of us are insanely debt-averse now (wasn't there just an article published recently that people under 40 are the most likely to have their mortgage paid off in full?), and cars and homes are the two items you might typically accrue debt for.
Bingo. My parents are from the Silent Generation, early enough to experience the Great Depression and WWII from the home front. And they're rather miserly with money.
This could be related to the observation that people who enter the workforce during a recession end up earning quite a bit less than those who don't.
When I tell people their first financial goal should be to eliminate their debt, I get crazy looks. Especially if they are older or are too young to understand college and other debt burdens.
Widespread, extended, negative macroeconomic event happens. Those experiencing these events at crucial development points in their lives (childhood, early adulthood) adjust their livelihoods to compensate. Even when the negative effects disappear, behavioral patterns have been set in stone.
Sure, there are obvious differences, e.g. we sometimes still fritter away our money on electronics we probably don't really need. Still, I think the similarities are pretty striking. We're a lot more like our grandparents than our parents.
As for the article, I think the car/housing situation is probably a really simple one to explain: millenials know first-hand how crippling debt can be (in the form of student loan debt). Even those lucky enough to escape that can see how awful it's been for our cohort.
Most of us are insanely debt-averse now (wasn't there just an article published recently that people under 40 are the most likely to have their mortgage paid off in full?), and cars and homes are the two items you might typically accrue debt for.