Gen Y embraces frugality
Generation Y. They traveled to Europe, wore designer duds, had their own cars and were programmed and nurtured with activities throughout childhood. Now the turbulent economy has them undertaking a new pursuit, pinching their pennies.
Academic researchers at the University of New Hampshire have labeled Gen Y as the "entitlement generation." Such entitlement has been commonly blamed on the media - MTV, the swanky lifestyles of Hollywood and wealthy teenage superstars.
Laura Kohl (left), Charlotte Sandgren and Rochelle Stinar (far right) and Travis Chaput worked in a small group during a class project. The students are part of Pat Swartout's Customer Relations Marketing course at Central Lakes College in Brainerd. Brainerd Dispatch/Kelly Humphrey
Students in Pat Swarthout's Customer Relations Marketing course at Central Lakes College agreed "blinged out" rappers make for easy scapegoats, but said we need to look closer to home, directly at the openhanded parents. The students stated that parents who fulfilled their kids' every demand are the real culprits.
"Where are the coloring books?" asked Travis Chaput, referring to the video game playing youngsters of today. Travis says he's in the minority of Gen Y who learned the value of a dollar. "Parents contradict themselves. They would say, 'I didn't have that growing up,' yet they turn around and buy it anyway."
The new recession culture has noticeably affected Swarthout's students. They've found area resort jobs once geared for teenagers now going to older workers. Furthermore, the class questioned the availability of positions for educated workers in the lakes area. With the lack of employment opportunities, the class agreed on the need for higher education.
"The reality is, a bachelor's degree today is comparable to having an associate's," said class member Sarah Dockendorf.
Young mothers in the class questioned the system in which they qualified for financial aid for school only after having a child. "It doesn't make sense. You'd think the government would want us to better ourselves before having a child," Charlotte Sandgren said.
"Have a kid. Go to college" joked peer Ashley Kimball.
Around the country Gen Y'ers are embracing the novel moment of frugality, as evidenced by recent retail numbers. Sales at upscale shops such as Neiman Marcus and Nordstrom's have dropped, while sales at Walmart and Target are up.
As a result of the recession, frugal lifestyles are now regarded as a responsible manner of living and in some instances seen as chic for Gen Y'ers. Yet Swarthout's students disagreed. The class consensus was that Brainerd has embraced frugality for some time. The students have always sought good deals and watched their money. In fact, only five of the 20 or so students have a credit card, as the majority of students don't "trust themselves" with a credit card.
Entertainment on a frugal budget in Brainerd means pursing free activities such as meeting friends for cards or bonfires and hanging out at local parks and beaches for these financial savvy Ys. Certain luxuries have been sacrificed, new trucks sold, fewer trips to the Cities taken and shopping allowances cut.
To stretch budgets further, the students advocate coupon use. Students utilize the Internet and newspaper to find coupons. When asked if they didn't mind cutting out coupons, "not at all" was the class agreement.
These Gen Y'ers are proactively making positive financial decisions, which are especially hard in a materialistic society where "if you don't drive an expensive car, make a six-figure income, etc., you feel poor, all because of media and peer influence," said Chaput.
MITCH HALLAN is the Dispatch employment advertising coordinator.