(video from DigProjects)
The financial crisis of 2008 to ??? may turn out to be the defining event of their generation. Todd Woodward, a savvy Millennial Marketer, believes the crisis may be the event that distinguishes Millennials from the generation immediately following behind them. No doubt the childhood experiences of today’s middle schoolers and younger children will be quite different; the Millennials were the children of plenty and the next generation will likely be the children of scarcity.
So how will Millennials cope with the financial crisis? Last week I suggested that they are unlikely to make immediate or drastic changes in their spending habits (or savings) because they already consider themselves cash-strapped. Here are a few more predictions:
1. Many will return to school. According to GMAC’s Application Trends report, “economic changes and GMAT test-taking patterns suggest that the highest level of growth in (graduate school) application volume may occur, after which a slowdown is likely to begin.”
2. Many will seek alternative jobs in the not-for profit sector. With career advancement iffy, many will decide to focus on other ‘rewards’ for working. Making a difference is a key Millennial value. Many will reason that there will never be a better time to try. GMAC’s annual Corporate Recruiter survey says “Overall, salaries for MBA graduate hires will likely remain at the 2008 level. Yet, the majority of nonprofit and government organizations as well as energy and utilities firms plan to increase average annual base salaries for new MBAs)”
3. Many will try to supplement their income with side jobs.. Instead of spending less, Millennials will become creative about generating income from what 26-year old Arneta in the video above calls ‘a side hustle’. Arneta styles hair, her boyfriend makes videos. She believes many Millennials will become more entrepreneurial, and so do I. As she points out, a side hustle not only generates income, but also provides experience.
4. Many will redirect their careers. An article in today’s Wall Street Journal (“Summer on the Street, Before the Fall“) describes the lives of three summer 2007 interns at Morgan Stanley in New York. Today only one is working full-time at Morgan Stanley after graduating in May. The others? One delayed his graduation from Rutgers to take more business and accounting courses. The other had a subsequent internships at Lehman Brothers in the media-relations department and now has a wedding and fashion photography business. I expect to see students in the MBA program at Notre Dame who might before have been fixed on finance careers start taking a harder look at marketing and management.
5. Many will move back home. Helicopter parents will continue to provide a social safety net for Millennials in need. And Millennials will not feel uncomfortable about moving back in with Mom if it comes to that.
6. Some will sign up for military service. Time magazine reports that the US military surpassed its recruiting goal. A total of 184,841 new recruits were added to active duty service with the National Guard recruiting the most and overshooting its goal by the most. Second in line was the Army Reserve.
