This session is hosted by the Personal Finance & Family Transitions concentration areas of the Military Families Learning Network. For more information about this webinar and to access the recording, visit https://learn.extension.org/events/3108

1. PF SMS iconsPF SMS icons
learn.extension.org/events/3108
This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Military
Family Readiness Policy, U.S. Department of Defense under Award Number 2015-48770-24368.
Financial Planning Transitions for
Different Generations: Touchstones,
Tasks, & Teaching Strategies
1

2. Connecting military family service providers
and Cooperative Extension professionals to research
and to each other through engaging online learning opportunities
militaryfamilies.extension.org
MFLN Intro
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3. Today’s Presenters
3
Barbara O’Neill, Ph.D., CFP®, AFC, CHC
Extension Specialist and Distinguished Professor
Rutgers University
Lisa Hinz
Extension Educator, Leadership and Civic Engagement
University of Minnesota Extension
Brian Fredrickson
Extension Educator, Leadership and Civic Engagement
University of Minnesota Extension

4. Increase knowledge about
characteristics of generations living and
working in the U.S. today
Increase knowledge about generational
personal finance practices
Increase knowledge about generational
personal finance action steps
Increase knowledge about generational
financial education resources
4
Today, we’ll …

5. 5
What do you hope to
learn today?
Share in the chat pod.

6. To understand the man you have to know
what was happening in the world when he
was twenty.
― Napoleon
6
6

7. It has been said already, but bears
repeating: no blanket statement can sum
up an entire group of people. No book, no
chapter, no study, no research report can
attempt to do that either.
―Charlie Caruso, author, Understanding Y
7
7

8. a group that shares birth years, age, location, and
significant life events at critical developmental stages
Wikimedia Commons Wikimedia Commons
A generation is …
8

9. Pere/ Flickr CC2.0
9

10. Who are the generations?
Traditionalist ~ before 1946
Baby Boomer ~ 1946 – 1964
Gen X ~ 1965 – 1980
Millennial ~ 1981 – 1995
Gen Z ~ 1996+
Generational labels and years are not absolute. For this presentation, sources are drawn
from research as much as possible and adapted for clarity from Pew Research Center
and the Center for Generational Kinetics
Licensed by UMN Extension
10
10

11. Births by Generation
11
11

12. 25 or
younger
26-30
years
31-35
years
36-40
years
41 &
older
Age of Total Military Force
(N=2,120,505)
Source: 2015 Demographics: Profile of
the Military Community; Department of
Defense, Office of the Deputy Assistant
Secretary of Defense for Military
Community and Family Policy
Generations in our Military
12

13. 25 or
younger
26-30
31-35
36-40
41 &
older
Age of Total Military Force
(N=2,120,505)
Millennials &
Gen X
Gen X
Millennials
Gen Z &
Millennials
Source: 2015 Demographics: Profile of
the Military Community; Department of
Defense, Office of the Deputy Assistant
Secretary of Defense for Military
Community and Family Policy
Generations in our Military
Gen X, Boomers,
& Traditionalists
13

14. 0
100,000
200,000
300,000
400,000
500,000
600,000
Ac=ve Duty
Members
Ac=ve Duty
Enlisted
Ac=ve Duty Officer Selected Reserve
Members
Selected Reserve
Enlisted
Selected Reserve
Officers
Age of Ac=ve Duty & Selec=ve Reserve -
Enlisted & Officers
25 or younger 26-30 31-35 36-40 41 & older
n 25 or younger – Gen Z & Millennials
n 26-30 years old – Millennials
n 31-35 years old – Millennials & Gen X
n 36-40 – Gen X
n 41 and older – Gen X, Boomers, &
Traditionalists
Source: 2015 Demographics: Profile of the Military Community; Department of
Defense, Office of the Deputy Assistant Secretary of Defense for Military Community
and Family Policy
Active Duty & Selective Service
14

15. 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Enlisted Officers Enlisted Officers Enlisted Officers Enlisted Officers
Army Navy Marine Corps Air Force
Number of Ac=ve Duty Enlisted Members and Officers by
Service Branch and Age
25 or younger 26-30 31-35 36-40 41 & older
n 25 or younger – Gen Z & Millennials
n 26-30 years old – Millennials
n 31-35 years old – Millennials & Gen X
n 36-40 – Gen X
n 41 and older – Gen X, Boomers, &
Traditionalists
Source: 2015 Demographics: Profile of the Military Community; Department of
Defense, Office of the Deputy Assistant Secretary of Defense for Military Community
and Family Policy
Active Duty by Service Branch
15

16. 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Enlisted Officer Enlisted Officer Enlisted Officers Enlisted Officers Enlisted Officers Enlisted Officers
Army Na=onal
Guard
Army Reserve Navy Reserve Marine Corps
Reserve
Air Force Reserve Coast Guard
Reserve
Number of Selected Reserve Enlisted Members and Officers
by Reserve Component and Age
25 or younger 26-30 31-35 36-40 41 & older
n 25 or younger – Gen Z & Millennials
n 26-30 years old – Millennials
n 31-35 years old – Millennials & Gen X
n 36-40 – Gen X
n 41 and older – Gen X, Boomers, &
Traditionalists
Source: 2015 Demographics: Profile of the Military Community; Department of
Defense, Office of the Deputy Assistant Secretary of Defense for Military Community
and Family Policy
Selective Reserve by Component
16

17. 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
25 or younger 26-30 31-35 36-40 41 & older
Age of Military Spouses - Ac=ve Duty & Selected Reserve
Age of Military Spouses - Ac=ve Duty & Selected Reserve Ac=ve Duty
Age of Military Spouses - Ac=ve Duty & Selected Reserve Selected Reserve
Source: 2015 Demographics: Profile of the Military Community; Department of
Defense, Office of the Deputy Assistant Secretary of Defense for Military Community
and Family Policy
Spouses: Active Duty &
Selective Service
17

18. U.S.
Genera6ons
by the #s
Now - 2050
18

19. Poll: Which generation are you?
19

20. Tradi=onalists
a.k.a “Greatest Genera=on”,
Silent, Builders
• Great Depression
• WW II
• Rural Life
• Automobile
• Family-Faith-School
• Telephones (party line)
• Silver Screen
• Big Bands
Image via Photospin
20
20

21. • Can-do attitude matched
with Will-do
accountability
• Most financially secure in
recent years
• Value obedience & duty
over individualism &
pleasure
Strengths of Traditionalists
• Loyal
• “We are all in this
together” mentality
• Value training
• Believe in law and order
• Thrifty
21

22. Baby Boomers
• Suburbia
• Vietnam
• Civil Rights
• Kennedy
Assassination
• TV
• Beatles & Elvis
22
Randstad Canada/CC BY 2.0
22

23. Randstad Canada/CC BY 2.0
Strengths of Boomers
• Size of their cohort –
political leverage
• Sense of equality
• Value hard work
• Team Players
• Challengers of status
quo
• Notoriously good
networkers
• Drive to learn and
improve, become self-
actualized
• Own considerable
proportion of nation’s
wealth
23

24. Generation X
a.k.a. Gen X, Busters, Post-Boomers
• Disco, Rap, Michael
Jackson, & MTV
• Watergate
• Iran Contra Scandal
• Challenger Disaster
• Berlin Wall down
• AIDS
• Computers
Licensed by UMN Extension
24
24

25. • Survivor mentality
• Adaptable
• DIY / Start from scratch
(means no rules)
• Pragmatic
Strengths of Gen X
• Prioritizing
• Risk Takers
• Willing to rock the boat
• Independent
• Tech Savvy
25

26. Millennials
a.k.a. Gen Y, Nexters, Internet Generation
• Tech Boom
• Multiculturalism
• 9/11 Attacks, Oklahoma
Bombing, & Columbine High
School Shootings
• TV Talk shows and Reality
TV
• Internet, email, cell phones
Licensed by UMN Extension
26
26

27. Strengths of Millennials
• Size of their cohort
– 1/3 of the U.S. pop.
– 1/4 of the world’s pop.
• Civically engaged
• Tech-able
• Positive expectations -
hope
• Carefully weigh options
before making
decisions*
• Continuous learners
• Value collective action
• Coming in to money
• Strong team ethic
• Driven to make a
difference
• Open to adaptation
• Achievement oriented
27

28. Gen Z Digitals
a.k.a iGen, Centennials
28
• Technology revolution
• Considerable diversity
• Instant results; constant
feedback
• Skill gaps
• Global mindset - local reality
28

29. Strengths of Gen Z (after 1996)
• Size of their cohort
• Stronger work ethic and
entrepreneurial sprit
• Skilled web researchers
• Diversity breeds
awareness
• Most diverse “rainbow”
generation
• Autodidactic mindset:
can and will teach
themselves what they
need to know
• Flexibility
29

30. • Funding Entitlements vs. Program
Sustainability
• Time and Effort
– To understand
– To build relationships
• Innovation vs. Institutional Knowledge
• Racial shifts
30
Potential Challenges or
Tensions
30

31. 31
ü Continuous learning,
experimenting, and
adapting is essential
at all ages.
ü Encourage frequent
and meaningful
contact across all
generations
ü Follow reports based
on data.
31

32. 32
Thoughts?
Questions?
32

33. • Books
– Deal - Retiring the Generation Gap
– Taylor – The Next America (& interview)
• Web
– Pew Research Center
– Center for Generational Kinetics
– interview: “Millennials to bear the
burden of boomer’s social safety net” - David
Green interviews author Paul Taylor, The Next
America
http://creative-commons-
images.com/handwriting/h/human-
resources.html
33
33

34. Generational
Personal Finance
Practices
34

35. https://www.youtube.com/watch?v=sU5KBUGvM3U
Talkin’ ‘Bout My Generation
35

36. The Influence of Early
Environments
“What imprints on younger people impacts
them for the rest of their lives”
- Cam Marston, Generational Insights
https://generationalinsights.com/about/
36 36

37. NEFE Generation Definition
37

38. Generational Touchstones
Source: National
Endowment for Financial
Education
38

39. Life Cycle Tasks That All
Generations Pass Through
Source: Take
Charge Today,
formerly known as
Family Economics
and Financial
Education (FEFE)
39

40. The Financial Life Cycle
40
Source: Take
Charge Today,
formerly known as
Family Economics
and Financial
Education (FEFE)
40

41. Generations Defined
Source: Dr. Ethel G. Jones,
Louisiana Tech University, School of
Human Ecology
Source: Wall Street Journal:
https://www.wsj.com/articles/analysis-of-
the-generations-isnt-an-exact-
science-1468575000
41

42. Generational Differences Activity
Source: Dr. Ethel G.
Jones, Louisiana Tech
University, School of
Human Ecology
42

43. Question #1:
How much do you know
about generations and
personal finance?
43

44. Generational
Personal Finance
Practices
44

45. Poverty Levels by Generation
45

46. Spending Behavior
Source: Bank of America/Merrill Lynch
Take-aways: Millennials spend the most
on eating out, Gen X spends the most on
housing, Baby Boomers spend the most
on furniture/building, and Traditionalists
spend the most on groceries.
Source: Dr. Ethel G. Jones, Louisiana Tech
University, School of Human Ecology
46

47. Source: Bankrate Spending
Index, July 2017:
http://www.prnewswire.com/
news-releases/millennial-
spending-habits-differ-from-
older-
generations-300491437.html
Millennial Spending vs. Others
47

48. Payment Behavior
Source: Next Gen
Personal Finance:
https://
docs.google.com/
presentation/d/
1e6qcFBx6K-
UNpXmzllpGalXKgU4t4
XoNspucTFeUJ24/
edit#slide=id.g1821069
9ce_1_6
48

49. Comfortably Cashless
Source: Next Gen Personal Finance:
https://docs.google.com/presentation/
d/1-2R_jszVMwlVW2mUvrnPM-
EFo6GqhIpRIK9z1LfuinE/
edit#slide=id.g1821408edd_0_0
49

50. Credit Cards By Age
Source: Next Gen
Personal Finance:
https://docs.google.com/
document/d/
170znpcLfVahk3H7O4Gq
bS1u124ABMvuxsvc4DD
3X0kM/edit
50

51. Credit Card Debt by Age
Source: Next Gen Personal Finance:
https://docs.google.com/document/d/
1LcYwZIXZf1AC0i7v3I6sJEumCt9xZBsAXu8OSAYbx7Y/edit 51

52. Credit Scores By Age
Source: Credit Karma: https://www.creditkarma.com/trends/age
52

53. Source: Value Penguin via Next Gen Personal Finance:
https://docs.google.com/document/d/1sgTUFbCvNyUbEyAiIiUNsXIAxX9PD4OSoACjt0xzczE/
edit
Auto Insurance Premiums by Age
53

54. Source: Value Penguin via Next Gen Personal Finance:
https://docs.google.com/document/d/
13kyHDBg91oCZUzmWip7PRCi9CUmFDmg89d1kXHBkuLM/edit
Health Insurance Premiums by Age
54

55. Health Care Barriers by Generation
55

56. Income Tax Filing by Generation
Source: GO Banking Rates:
https://www.gobankingrates.com/personal-finance/43-percent-americans-file-
taxes-comfort-home-survey-finds/ 56

57. Question #2:
Comments so far?
57

58. Saving and Investing Behavior
Source: T. Rowe
Price Report, Issue
135, Spring 2017,
p. 14-15;
https://
individual.trowepric
e.com/staticFiles/
Retail/Shared/
PDFs/
pricereport_spring.
pdf?
van=pricereport-
spring
58

59. Cash Asset Allocation
Source: Blackrock survey
via Investopedia:
http://
www.investopedia.com/
news/millennials-are-risk-
averse-and-hoarding-
cash/?lgl=rira-baseline-
vertical
59

60. Savings Goals
Source: Merrill
Edge Report,
spring 2017:
https://
olui2.fs.ml.com/
Publish/Content/
application/pdf/
GWMOL/
Merrill_Edge_Repo
rt_Spring_2017.pdf
60

61. Generational Saving
Perceptions
Source: Merrill Edge
Report, spring 2017:
https://olui2.fs.ml.com/
Publish/Content/
application/pdf/GWMOL/
Merrill_Edge_Report_Sprin
g_2017.pdf
61

62. Multi-Generational Housing
Arrangements
Source: Next Gen
Personal Finance:
https://
docs.google.com/
presentation/d/
1RgiqeOwXdA6_Hsyjh
TyKhq1S51tB3GOj0kIn
QsItLh4/
edit#slide=id.g9991859
6f_0_129
62

63. Young Adults Living with Parents
Source: Pew Research
Center:
http://
www.pewsocialtrends.org/
2016/05/24/for-first-time-in-
modern-era-living-with-
parents-edges-out-other-
living-arrangements-for-18-
to-34-year-olds/
63

64. Question #3:
Thoughts? Comments?
64

65. Generational
Personal Finance
Action Steps
65

66. Generational Overview
Source: Hagen Jokela, Hendrickson, & Haynes (2013). Teaching Financial Literacy Across
the Generations. Journal of Extension, 51(1); https://www.joe.org/joe/2013february/tt6.php 66

67. General Financial Action Steps
Source: David Lerner
Associates’ Guide to
Smart Retirement
Strategies, David Lerner
Associates, Inc.,
Syosset, NY
67

68. Blog Post about Generations
Source:
https://moneytalk1.blogspot.com/2017/07/
personal-finance-tasks-by-decade.html
68

69. Millennials (Gen Y)
Age 17-35 in 2017 (b. 1982-2000)
• Train for a career and establish a household
• Learn to budget and “pay yourself first”
• Organize a repayment plan for student loans
• Build an adequate emergency fund
• Fund a Roth IRA account for retirement savings
• Start 529 plans or other savings plans for
children
• Build a positive credit history
• Minimize taxes (e.g., tax credits)
69

70. • Explore financial institutions (bank, credit union, etc.)
• Increase investing expertise
• Invest for the long-term in stocks/stock mutual funds
• Buy life insurance to protect dependents and/or
private student loan co-signers
• Teach children about personal finance
• Balance YOLO/FOMO mindsets with financial
security
• Avoid “hoarding cash” to avoid investing
• Develop a personal financial identity
Millennials (Gen Y)
70

71. Generation X
Age 36-52 in 2017 (b. 1965-1981)
• Don’t forget about old retirement savings plans
• STILL invest for the long-term in stocks/stock funds
• Diversify investments and rebalance portfolio
• Enhance employment skills (build human capital)
• Try to “max out” retirement savings plan deposits
• Talk to aging parents about their finances
• Consider hiring a financial adviser
71

72. • At age 50, save more for retirement with catch-
up provisions for IRAs and employer savings
plans
• Manage increased need for credit and
insurance
• Understand that retirement savings generally
trumps college savings
• Don’t neglect health in pursuit of wealth
• Prepare a will if one wasn’t already created
Generation X
72

73. Baby Boomers
Age 53-71 in 2017 (b. 1946-1964)
• Decide when to take Social Security benefits
• Determine a retirement income strategy (e.g., 4%
Rule)
• Learn about Social Security, Medicare, and pension
• Investigate later life housing and living costs
• Learn about required minimum distributions (RMDs)
• Try to pay off all debt (including a home mortgage)
before retirement
• Start taking advantage of “senior discounts”
73

74. Baby Boomers
• Consider long-term care insurance or earmark a
portion of savings to “self-insure”
• Invest in college savings plans for grandchildren
• Consolidate accounts for simplification
• Consider taking classes and/or building networks
for a “second act” (e.g., freelance work)
• Review estate plan and adjust as needed
• Care for aging parents or other dependents
• Make the most of remaining paychecks to save for
retirement
74

75. Mature/Silent/Traditionalists
Age 72-90 in 2017 (b. 1927-1945)
• Get more strategic about philanthropy (e.g., large
gifts, charitable trusts, donor advised funds, etc.)
• Talk to children/heirs about finances and estate
plan
• Streamline/consolidate financial accounts
• Gift heirlooms while alive to see recipient enjoy
them
• Downsize and/or donate “stuff”
• Hire help as needed (e.g., yard work, cleaning)
75

76. Mature/Silent/Traditionalists
• Make it easy to manage money and pay bills (e.g.,
direct deposits and automatic withdrawals)
• Make sure family members know where to find
personal and financial documents
• Adjust lifestyle to a declining real income, if needed
• Take RMDs from retirement savings plans
• Regularly review beneficiary designation on life
insurance and retirement savings plans
76

77. Don’t Forget Generation Z!
Video:
https://www.youtube.com/
watch?v=K1HyDn7dZ1o
Born 1994-2010 (approx.)
next cohort of future employees
Video:
https://www.youtube.com/
watch?v=I7N1JJo6eFg
77

78. Gen Z Take-Aways
• Make up 25 percent of U.S. population
• 62% anticipate challenges: work with Boomers/Gen
X
• Realistic thanks to skeptical Gen X parents,
recession
• Competitive with “do it yourself” mentality
• 74% prefer to communicate face-to-face
• 75% say there are other ways to get a good
education than going to college
Source: https://www.inc.com/ryan-jenkins/generation-z-vs-millennials-
the-8-differences-you-.html
78

79. The Military Lifecycle
Source: Consumer
Financial Protection
Bureau (CFPB) Office of
Servicemember Affairs:
https://s3.amazonaws.com/
files.consumerfinance.gov/
f/documents/
201705_cfpb_OSA_Military
-Lifecycle-Report.pdf
79

80. Question #4:
Other action steps by
generation?
80

81. Generational
Personal Finance
Resources
81

82. Journal of Financial Planning
Blog Post
Source:
https://
practicemanagementblog.onefp
a.org/2017/06/27/be-a-gen-
savvy-planner-take-off-your-
generational-lenses/
82

83. A Classic: Journal of Family and
Consumer Sciences Article
Source:
O'Neill, B. and Brennan, P. (1997).
Financial
Planning Education Through the Life
Cycle. Journal of Family and
Consumer Sciences, 89(2), 32-36.
83

84. Military Saves:
Financial Strategies by Generation
Source: https://militarysaves.org/blog/1296-financial-strategies-by-generation
84

85. Life Cycle of Financial Planning
Source: Family
Economics and
Financial Education:
http://www.ktufsd.org/
cms/lib/NY19000262/
Centricity/Domain/94/
Life_Cycle_of_Financi
al_Planning_PPT.pdf
and
http://
mainstreetwealthgrou
p.com/wp/wp-content/
uploads/2011/12/
Life_Events_of_Finan
cial_Planning.pdf
85

86. Financial Tips for Generations
Source:
http://www.360financialliteracy.org/Topics/Budgeting-Spending/Budgeting-Saving/Real-life-Financial-Tips-for-
Different-Generations 86

87. Teaching Different Generations
Sources:
https://www.joe.org/joe/
2013february/tt6.php
and
https://www.slideshare.net/
sondramilkie/teaching-
financial-literacy-
engagement-of-
multigenerational-learners
87

88. NEFE® White Paper
Source:
http://toolkit.nefe.org/Portals/0/
NEFE%20Evaluation%20White%2
0Paper%20October%202016.pdf?
ver=2016-10-31-154554-707
88

89. Question #5:
Other good
generational personal
finance resources?
89

90. Key Take-Away for Practitioners:
Don’t Impose YOUR “Social Clock”
on Other People!
Social Clock: “a cultural timeline of
expectations of what people should do at a
certain age” (William Doherty, U of Minnesota)
– Late 20s/30s: “So when are you two going
to have a baby?”
– Late 50s/60s: “So when are you going to
retire?”
– Late 60s/70s+: “Are you still working?
Why?”
https://www.wsj.com/articles/its-ok-to-party-when-you-turn-60-1500914273
90

91. Connect with MFLN Family Transitions Online!
MFLN Family Transitions
MFLN Family Transitions @MFLNFT
MFLN Transitions
91

92. Connect with MFLN Personal Finance Online!
MFLN Personal Finance
MFLN Personal Finance @MFLNPF
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92

93. MFLN Intro
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to our private LinkedIn Group!
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94. Evaluation and
Continuing Education Credits/Certificate
MFLN Personal Finance grants 1.5 credit hours for today’s
webinar for AFC-credentialed through AFCPE and CPFC-
credentialed participants through FinCert.
MFLN Family Transitions issues a certificate of attendance to
those interested in receiving one from today’s webinar.
Please complete the evaluation and post-test at:
vte.co1.qualtrics.com/jfe/form/SV_ebMoeIoNIBF2eZT
Must pass post-test with an 80% or higher to receive certificate.
94

95. Personal Finance Upcoming
Event
2017 Personal Finance Year in Review
• Date: Tuesday, Dec. 5, 2017
• Time:11 a.m. ET
• Location: learn.extension.org/events/3070
For more information on MFLN Personal Finance go to:
militaryfamilies.extension.org/personal-finance
For more information on MFLN Family Transitions go to:
militaryfamilies.extension.org/family-transitions
95

96. militaryfamilies.extension.org/webinars
This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Military Family
Readiness Policy, U.S. Department of Defense under Award Number 2015-48770-24368.