For the iPod generation, some things will never be the same. Many teens and young adults, raised on gadgets and designer goods, are facing their first economic downturn, and with it, an increasingly unpredictable financial future.
For the iPod generation, some things will never be the same.
Many teens and young adults, raised on gadgets and designer goods, are facing their first economic downturn, and with it, an increasingly unpredictable financial future.
While their parents cope with falling home values and grim stock returns, American youth lope toward the job market with fewer opportunities, more debt and less certainty about how to manage money, according to some financial educators.
"From my standpoint, almost halfway through college, it's kind of scary because I'm not sure what the job market will be," said Wes Sherrill, a sophomore at the University of Charleston. "What I expected in terms of salary and opportunities are completely shot now."
Sherrill, who studies finance and business administration, said he saves money from his part-time job and thinks carefully about his spending. He's already trying to develop skills and make contacts that will help him after college.
"A lot of kids turn a blind eye, and that can come back to bite you. We have to open our eyes to look at the hammer that's coming down. It's going to continue to beat us," he said.
Today's youth are struggling with rising costs and worries about immediate financial concerns such as bills, groceries and gasoline, instead of saving for the future, according to Qvisory, a nonprofit advocacy group for young adults.
A Qvisory study from July found that over half of the respondents age 18 to 34 years old reported having credit card debt. About 57 percent said they pay only the minimum amount of their card payments monthly, racking up interest charges.
Credit card debt can be a major struggle for many young people, leaving them in trouble beyond their college days, said Dr. Robert Bliss, an associate professor of business at UC.
"It's a vicious cycle, and restraint can be very hard for people who are 20 years old, when there is pressure from peers to keep up," Bliss said.
Chelsea Ray, also a student at UC, does not have a credit card. But nearly all of her friends do.
Ray, who studies finance and heads the UC Students In Free Enterprise club, said today's young people need to spend with discipline and learn from the recent market bailout.
"I think it's an excellent wake-up call. People my parents' age financed and refinanced and refinanced their debt," Ray said. "They can't pay it back now because they could never afford it in the first place."
However, young people don't learn wise financial practices from their parents when their parents stay silent.
"Money is often a household taboo. People don't sit down and show their children, 'This is our budget, this is where the money actually goes,'" said Justin Southern, communications director for the West Virginia State Auditor's Office.
Over the last decade, state and federal offices have begun to stress financial principles as part of academic and technical education.
Through West Virginia Jump, the state chapter of a national financial literacy group, teachers can now spend a week at Finance University where they learn from business professionals for free.
Things such as stock market games and online flash programs have helped pique interest in learning about money.
For the iPod generation, some things will never be the same.
Many teens and young adults, raised on gadgets and designer goods, are facing their first economic downturn, and with it, an increasingly unpredictable financial future.
While their parents cope with falling home values and grim stock returns, American youth lope toward the job market with fewer opportunities, more debt and less certainty about how to manage money, according to some financial educators.
"From my standpoint, almost halfway through college, it's kind of scary because I'm not sure what the job market will be," said Wes Sherrill, a sophomore at the University of Charleston. "What I expected in terms of salary and opportunities are completely shot now."
Sherrill, who studies finance and business administration, said he saves money from his part-time job and thinks carefully about his spending. He's already trying to develop skills and make contacts that will help him after college.
"A lot of kids turn a blind eye, and that can come back to bite you. We have to open our eyes to look at the hammer that's coming down. It's going to continue to beat us," he said.
Today's youth are struggling with rising costs and worries about immediate financial concerns such as bills, groceries and gasoline, instead of saving for the future, according to Qvisory, a nonprofit advocacy group for young adults.
A Qvisory study from July found that over half of the respondents age 18 to 34 years old reported having credit card debt. About 57 percent said they pay only the minimum amount of their card payments monthly, racking up interest charges.
Credit card debt can be a major struggle for many young people, leaving them in trouble beyond their college days, said Dr. Robert Bliss, an associate professor of business at UC.
"It's a vicious cycle, and restraint can be very hard for people who are 20 years old, when there is pressure from peers to keep up," Bliss said.
Chelsea Ray, also a student at UC, does not have a credit card. But nearly all of her friends do.
Ray, who studies finance and heads the UC Students In Free Enterprise club, said today's young people need to spend with discipline and learn from the recent market bailout.
"I think it's an excellent wake-up call. People my parents' age financed and refinanced and refinanced their debt," Ray said. "They can't pay it back now because they could never afford it in the first place."
However, young people don't learn wise financial practices from their parents when their parents stay silent.
"Money is often a household taboo. People don't sit down and show their children, 'This is our budget, this is where the money actually goes,'" said Justin Southern, communications director for the West Virginia State Auditor's Office.
Over the last decade, state and federal offices have begun to stress financial principles as part of academic and technical education.
Through West Virginia Jump, the state chapter of a national financial literacy group, teachers can now spend a week at Finance University where they learn from business professionals for free.
Things such as stock market games and online flash programs have helped pique interest in learning about money.
A financial component is also now a required part of high school civics classes, and many financial literacy materials are available to teachers for free.
Still, students are not retaining information as well as educators hoped. Nationally, their scores on Jump's biannual survey of financial literacy have sunk or stagnated since the organization started in 1995.
High school students across the country answered only 48 percent of questions correctly this year, a drop from 52 percent correct in 2006's survey.
In West Virginia, students from 10 randomly selected high schools answered only 51 percent of the questions correctly in the 2008 Jump survey.
"Those numbers are actually better than the national average, but 51 percent is not very good. It's still failing," Southern said.
The hope is that policymakers, educators and businesspeople in West Virginia can join together to promote consistent financial education as part of the public school curriculum.
In January, President Bush created the President's Advisory Council on Financial Literacy to monitor personal financial education.
With the U.S. Treasury department, the council is sponsoring The National Financial Challenge this month, for the second year. Students take the challenge online between Nov. 3-26, aiming for top honors, like with the Presidential Physical Fitness Award.
On the state level, the Treasurer's office is implementing its NetWorth program, which is a long-term strategy to present financial literacy information for K-12 students, bridging the gap between the textbook and the pocketbook.
Despite low scores, there is evidence that young people are reacting to the fears of a recession. Keeping a budget may be a change for these staple buyers of the retail industry, but paying $4 a gallon for gas and increases at the grocery store have caused them to scale backs in other areas.
Qvisory found that about 73 percent of the 18- to 34-year-old survey respondents have changed their habits by staying home more often. About 70 percent are using more coupons and spending less on music and clothing.
"Young adults are the most of any demographic to be pulling back this year. They're concerned about how they'll pay for things," said Ellen Davis, vice president of the National Retail Federation.
Because they have never faced a crisis before, they might be more timid than their parents and grandparents, who have seen recessions come and go, Davis said.
Living with moderation, said Sherrill, the U.C. student, isn't the end of the world. Saving money can be the difference between a small and a large fry at a fast food joint, buying things in bulk or only taking care of your own glass on a night out.
"People don't understand the long run. They forget about last Friday night when they bought a round for everybody at the bar. I'd say that it's a fallacy that you can't have a good time. Be frugal and maybe have fewer good times," Sherrill said.
Although jobs might be harder to find and salaries might be lower, America's young people will get through the looming recession with a little savvy, said Bliss, the U.C. professor. Unlike those their senior, they probably won't lose their life savings, retirement funds or their homes if they stay out of debt.
Also, moderation, combined with education, could leave them better prepared for the future.
"It's going to turn around," Bliss said. "There's more good than bad for the future. There will be more oversight, more accountability and new jobs, too."
Reach Kellen Henry at khe...@wvgazette.com or 348-5179.
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