Background Introduction This article aims to discover the savings projects that best appeal to young people in current economic environment. UN (2015) declares that the worldwide labour market circumstances persist challenging and the general situation is further complicated. In Europe, tension situation of Ukraine causes an unfavourable effect on economic recovery activities and confidences, which makes the reconstruction of euro region remain risky and unstable. On the other hand, employment rate decreased sharply after the financial crisis and job creation is extremely insufficient. Moreover, youth unemployment rates keep relatively high in European countries, such as, 53% in Spain, 44% in Italy and 35% in Portugal (World Economic …show more content…
According to Berry (2011)’s report, the UK government developed the National Employment Savings Trust (NEST) and automatically enrol workers into pension scheme, which is already leading some young workers to a long-term savings track. Furthermore, Tipper (2014) believes that Generation Y can resonate with tenable investment approaches if savings sector could build user reliance in investing by adopting auto-enrolment programme. Networking This research proposal uses Delphi technique to refine the research topic area. It is about forming a group of individuals who are related to or concerned about the research area to develop a more particular research idea (Saunders et al., 2006). I explained to three relevant course lecturers that my research idea was involved with helping young people use financial products to save and plan for their future. And we generated a few specific ideas, such as: the economic aspects that required young people to start saving; the features that young people look for in savings projects; roles of governments and savings sector in developing preferable savings projects. After discussion, I refined my research idea to: what savings projects best appeal to young people in current economic climate. Literature Review In recent years, savings in pension is always the major savings project appeal to
When I asked Ms. McGlashan what were the three biggest personal finance mistakes that she sees young people struggle with, she said, “Savings, young people don’t invest, or invest in the wrong things.” Ms. McGlashan
When the economy crashed in 2007 the youth was hit the hardest. The unemployment rate for people aged 25-32 was over 8 percent in 2013 (Machado “How Millennials…”). Instead of working dead-end seasonal jobs, Millennials would rather use this opportunity to do something they may have never had the opportunity to do otherwise. Also, growing up seeing their parents 401k’s wiped clean and hearing talk of failing social security program has caused Millennials to distrust their retirement options. In fact, only 6 percent of Millennials believe they will obtain the same benefits as their parents, and half believe that there will be no more money in social security by the time they graduate (Machado “How Millennials…”).
In this article Nona Aronowitz believes that the Millennial generation is risk aversive because statistically a large percentage of them are doing simply that – avoiding risk. Whether it is saving more of their paychecks, paying down debt instead of incurring new debt, or living at home, avoiding financial risks seems to be popular with this particular generation. Aronowitz describes the Millennials she interviews as “happy they’re not drowning financially and able to pursue fulfilling projects” (Aronowitz). Now only if I could learn a trick or two from them I would be better off.
This paper explains what Prize Linked Savings accounts are, offering both definition and description. “This paper describes these products, provides examples of their use, argues for their potential popularity in the United States – especially to low and moderate income non-savers – and discusses the laws and regulations in the United States that largely prohibit their issuance.” This information comes from a credible set of authors from a credible institution. There is a vast amount of information regarding PLS accounts that will be useful for the core idea and implementing it as well as providing possible rebuttals. This is my first solution for the second part of my plan. Prize-linked saving accounts will have two positive effects on the
Younger generations think they have plenty of time to plan and retirement seems too far in the distance future. But the earlier they begin saving for retirement, the more financially stable they will be at retirement age. Saving a little over a longer time accruing interest over the persons working years would develop into a nice retirement nest egg. Youth today will need to work harder at saving, in comparison to their grandparents and even their parents, due to economic factors and because social security and pensions lack reliability.
Many adults and teenagers living in the present day still do not know why saving money is important. As much as we all hope emergencies won’t happen, the truth is we all know that sometimes they are unavoidable. If you do not have a safety net to lean on when these problems arise they can rapidly turn into additional debt and loans. Setting a little money aside will assist you when these life emergencies arise. Saving money also helps people achieve and aspire to their personal, social, political, and environmental goals. Once you have enough money saved you can become financially independent and able to make your own choices about how to spend your money. Additionally, saving money gives you peace and satisfaction. Knowing that you have your finances in control feels commendable. Not having to worry about sudden emergencies or costly repairs lowers your stress levels. Saving money helps in sudden emergencies, assists
According to a Pew Charitable Trust report, more than half of Americans have less than one month of income saved in case of emergency. This is in direct contradiction to the advice given by most financial experts to have at least three to six months living expenses on hand for unexpected situations, such as a job loss. It is interesting to note that all levels of income had the same lack of savings; therefore, it is not necessarily a problem with the amount of income, but instead with an inability to save. So, in order to get the nation where it should be in terms of savings, there should be a great emphasis on educating the average American on how to go about creating a savings.
In an article written by Jonathan Burton titled “What Teens Need to Know About Money; How to Have That ‘Big Talk’ About the Financial Facts of Life” the author is a supporter of getting credit cards in the hands of the young generation. About 35 percent of bankruptcies filed are from people younger than 35 years old (56). The author has the idea that by giving the younger generation credit cards now can help save them from bankruptcy by teaching them how to manage their money. Many people going into debt due to the fact they simply do not understand how a credit card works or how to manage their spending. Teaching the younger generation how to manage money with a credit card can save them from being in poor financial circumstances in the
When it comes to saving habits for younger generations, it is fairly hard to believe that the majority of adolescence do not have a lot of assets saved. Despite the fact that, in the article of “Investing: Money Plus (Lots of) Time Equals Excitement”, Carl Richards, a financial planner in Park City, Utah has come up with the idea of compound interest in such a way that, “If you start with one penny and double it every day for 30 days, you’ll end up with $5,368,709.12” (Richards, 2013, para. 5). This idea of compound interest relates to the norms of investing early and or starting to save up for assets into account. From here, it is significant to know that as a young adult, putting more savings into account allows a person to accumulate more,
People are not being able to save because they are putting their wants in place of their needs. Saving money is one of the hardest things to do. First they need to develop a budget to be in control of where their money is going. One should record their monthly expenses, and any money saved for the month put away for emergencies. Today, people are making more money than ever before and still living paycheck to paycheck. Developing a budget will get one accustomed to living within their means and will open up more money for saving.
Because we are in a generation of social media, Visa’s promotion of this “Financial Football” game app, it will be able to promote to the younger market and allow them to learn earlier the importance of savings. This will also give them an opportunity if they are going away to college to understand about school finances, their savings, and early investments that could help them as they get older. On this site, there is an option to get expert advice on the basics of savings and spending, life events, and money marketing. There are interactive games to give more of an understanding in layman’s terms. We all are not financially suave and understand better if it’s broken
The article “8 Financial Tips For Young Adults “ was written by Amy Fontinelle, a financial journalist and editor of websites, public policy organizations and books publishers. The author has written the definition of several hundred financial terms for Investopedia’s online dictionary as well as in depth tutorials on budgeting, banking and home buying. In addition, Amy Fontinelle has extensive experience editing corporate documents, public policy papers and articles,
Personal savings for American’s as a whole has been rapidly declining for the past two decades. Starting out at about 9% in the 1980’s, the average amount of savings that American’s had to start out the new century was almost at 0%. The decline suggests a constriction of consumer credit and a weakening in consumer confidence (Ellen, Wiener, & Fitzgerald 58). The lack of consumer confidence can easily be blamed on the recession of 2009. Americans are no longer confident in their retirement savings.
When you are young you always hear people saying it is never too early to start saving for retirement, but at that age the last thing you want to do is put your money towards ending the career you are just trying to start. It is hard to imagine a time where you won’t have to go to work on a daily basis, to make a wage, in order to pay your bills, but the ultimate goal is getting to that time in your life where you don’t have to go to work and the bills are already taken care of. The hope for everyone is that the bills are taken care of and you are able to focus on leisurely things you did not have an opportunity for while employed. What we fail to realize is that the longer we wait to save the more we have to be concerned with the pressure of time running out and not enough money saved. Not to mention the sooner you start saving the more time you give your money to grow.
Have you ever invested money in stocks or maybe received savings bonds as a gift? Those are just two different types of investments that could potentially help with future money plans. It is very smart to start investing money or looking at other ways to invest at a young age to prepare for the future. There are many different types of investments that individuals can use to achieve future savings and investment goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old young adult and then receive a ten percent investment rate every year on that initial investment, at the age of sixty-five years old you would turn that one hundred dollars into $1,083. Investing your money rather than saving or spending it is smarter and can help you with your future plans.