Generations & investment (5/7): generation Y (1980-1999)

The term Generation Y refers to the sociological generation of people born between 1980 and 1999. Americans also use the expression digital natives Or net generation to point out that these children grew up in a world where the personal computer and the Internet became increasingly accessible. The Internet, television and social networks took over from the military, education, religion and family.

The Ys in brief according to Wikipedia:

• They did not have to endure the threat of Cold War apocalypse.
• They consider the moral transformations of the 1960s and 1970s to be acquired and sometimes outdated.
• They did not know the world without AIDS.
• They were young enough when consumer computing and portable electronics were widely introduced to have acquired an intuitive mastery of them that generally surpasses that of their parents (hence the name "digital natives").
• They were born with the beginnings of the general public's interest in environmentalism (which was previously the business of a minority, and often assimilated to the extreme left).
• They were born when IBM chose Microsoft's operating system for its PC.

As much as the " X " are cynical, as much as the "Y" are confident in the future. However, since they have been on the job market, the economy has been accumulating recession after recession. The "Y" generation thus experiences unemployment as soon as they leave school despite their diplomas, their curiosity and their skill with new technologies. Economic crises, including the Internet bubble in 2000 and the recent financial crisis have made it more difficult for them to access housing, which means that they leave the family home later than previous generations.

Ils ont néanmoins raison d’être optimistes. D'ici 2015, la génération Y devrait représenter 15 % de la population européenne et 40 % des actifs en France. Avec le départ des boomers à la retirement, une pénurie de main d’œuvre s’annonce à l’horizon 2017. Ceci dérange d’ailleurs certains employeurs : les « Y » sont rares et savent ce qu'ils valent. Pour les membres de cette génération, l'autorité n'est pas toujours synonyme de compétence. Ils n'ont pas peur de se comparer aux autres. Ils sont autant à l'aise pour communiquer à l'aide des technologies que directement. Ils refusent de travailler durant les fêtes et week-ends et veulent des congés pour décompresser, car la santé mentale et physique s'avère être leur priorité. Ils recherchent une meilleure quality of life, balancing work and personal interest. They think short-term and are very mobile.

The "Y"s like to understand what is happening, find meaning in what they do. The origin of the name comes for some from the English phonetics of the expression "Y" (pronounced "Why"), meaning "why".

If the " X » appear a bit like the antithesis of boomers, the "Y" are closer to a synthesis of the two previous generations. They are very close in some ways to the "X", while adding a "boomer" touch that marks their difference. While the "X" reject and flee the hierarchy, the "Y" question their competence, but without however the demanding side of the boomers. THE " X » and the “Y” seek quality of life, work-life balance. While the “ X » will arbitrate in favor of privacy, the "Y" will make sure to win on both counts, based on their skills, so as not to lose the purchasing power necessary to satisfy their consumption needs. If the boomers sought success to fulfill themselves, the "Y" seek above all the financial success, allowing him to consume as he pleases.

As for the " X ", the relational side, teamwork, ethics and sustainable development are more important to the "Y" than personal achievements. Yet this generation is more fond of brands, consumer goods, which brings them a little closer to the boomers. We can consider the "Y" as "social independents". Their relational needs are paradoxically all the more important as they are independent. They group together with people who have the same affinities, they form communities, they exchange on virtual platforms, forums, blogs... and of course social networks.

The "Y"s who influence the world are even rarer than the " X ", given their age. However, it is a safe bet that their search for financial success, their diplomas and their "socially independent" side will quickly give them access to the strategic positions abandoned by the baby boomers, for whom the " X » are not necessarily of interest.

There is, however, a very famous example of a company founded and run by a "Y", Mark Zuckerberg (1984), and which is tailor-made for this generation: 72% users of Facebook are under 34. According to the Wall Street Journal, in May 2009, a Russian investor offered $200 million to increase the company's capital to $10 billion on condition that he be given a seat on the board of directors. Mark Zuckerberg reportedly refused because he says he is only open to proposals that will give his social network more latitude. Social, but independent, a pure-blooded "Y".

Zuckerberg's mentor, Steve Jobs had a lot of admiration for his young protégé and for his refusal to sell Facebook. The company will go through an IPO in April 2012, should raise 10 billion and be valued at 100 billion market capitalization on the first day of trading.

Although their goals are different, boomers and millennials share a certain independence and thirst for success. According to the 2010 Forbes ranking of the world's richest people, Mark Zuckerberg's fortune is estimated at $6.9 billion. At age 23, he held the title of youngest billionaire on the planet.

The "Y"s in the blogosphere

The "Y" generation, given their attraction to the Internet and social networks, are obviously very numerous on the blogosphere. In particular, their orientation towards quality of life and financial success has caused the number of blogs dedicated to wealth management and enrichment outside the workplace to explode. Some blogs like journaly and geny-finances openly display their generational origins.

http://www.capitalstory.fr/

http://www.devenir-rentier.fr/

http://www.investisseurdebutant.com/

http://www.boomerandecho.com/

http://www.journaly.com/

http://geny-finances.blogspot.com/

http://www.mes-finances-mode-demploi.fr

In our next article we will discuss the new silent generation.

 Sources: Wikipedia, dividendes.ch