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
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
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
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.
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.
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
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
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,
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.
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.
Automatic transfer is an impactful tool in savings: “Everyone should have a savings account,” claims David Weliver, founding editor of Money Under 30, “But... for the goals you have and not when you’re strapped for cash” (2018). Additionally, keeping this new account with separate bank lowers their risk of putting funds back into a primary account and washes away the temptation to overspend. Another way to prepare for the future is by setting up a retirement plan. Katie Lobosco, writer for CNN money states, “If your employer doesn't offer a 401(k), you can contribute to an IRA or Roth IRA to save for retirement” (2017). Young adults should always have a retirement plan that suits their needs. For example, a Simplified Employee Pension, or SEP, is especially for young entrepreneurs and self-employed business people. Researching retirement allows people to individualize it to their needs and continue to be current with every update. Setting forth monetary saving targets will lead the next generation to be determined, hard-working people who are not afraid of the
When it comes to investing, millennials adhere to a different approach than their parents. Young investors, who have been through two market crashes, have developed skepticism and mistrust towards banks and traditional advisory services. Many millennials prefer to save and forgo investing all together. For those willing to test the market, technology and social trends play a significant impact on their decision making. With millennials now outnumbering baby boomers in the U.S., many traditional financial services strive to connect with the younger generation. This comes on the heels of a noticeable upward trend in financial technology and online wealth management. Through the use of technology, robo-advisors have built a successful foundation for attracting young investors.
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,
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.
With all this financial crisis among many young individuals, it is can be easily inferred that this results in a great pushback on individuals achieving “financial independence” and “reaching adulthood.” Society often defines individuals as reaching adulthood when they become economically stable and are able to take major responsibilities, such as having children. Many older generations criticize the younger generation for being more reliant on their parents.