Presentation on theme: "Dollars and (non)Cents: Generational Attitudes towards Paying for College."— Presentation transcript:
Dollars and (non)Cents: Generational Attitudes towards Paying for College
Generations defined Millenials Born 1977 – 1992 (about 21 – 36 today) ~30% of the adult population ~75 million people Generation X Born 1965 – 1976 (about 37 – 48 today) ~19% of the adult population ~45 million people Baby Boomers Born 1946 – 1964 (about 49 – 67 today) ~34% of the adult population ~80 million people 2
Millenials Large percentage from divorced families Respect those that help them. Feel entitled Expect authority figures to fix things/resolve conflicts for them Energetic workers who prefer collaboration and “coaching” management style More apt to trust social/technical networks than proximate individuals Has a “parents will pay” attitude about finances and is hyper brand oriented Generally optimistic and feel they can make a real difference 45% use a credit card for necessities/70% define financial stability as paying all bills on time 28% have been contacted by a bill collector in the past year 24% have missed a credit card or other debt payment in the last 12 months 3
Generation X Historically high rates of divorce First generation of latchkey kids where both parents worked View respect as based on personal character and relationships Treat work as a means to an end. Value leisure Skeptical of large organizations. The entrepreneurial/small business generation Place trust largely in personal connections Skeptical of large organizations Financially take a hedge and borrow approach Relatively more pessimistic 4
Baby Boomers Strong nuclear family Respect accomplishments and credentials Treat work as significant. Long hours, lots of meetings, status conscious Tend to question authority and respect the successful Financially are spenders and borrowers Believe they make a significant contribution to society 5
What does all of this mean? There is a large generation of borrowers that look at education as an entitlement Handholding will be the new norm Millenials don’t know the difference between good and bad debt Being poor while ordering a Starbucks coffee and texting on an iPhone PLUS borrowing is often “reluctant” borrowing Technology is the key to outreach Generation X is loading up on parent debt but increasingly find it hard to afford Perspective, perspective, perspective – loan balances are still affordable even with the current cost of college For older students/families, trust is the key to connecting with delinquent borrowers For younger students, messaging and how it’s channeled is the key to connecting with delinquent borrowers Borrowers will continue to subordinate student loan debt Race shapes borrowing habits and debt 28
Your consent to our cookies if you continue to use this website.