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By Harland Clarke - Generation Y: Why They’re Worth a Second Look
With an unemployment rate of more than 13 percent and an average salary of $39,700 , financial institutions might be inclined to dismiss Gen Y, the demographic group also known as “Millennials.” They may be currently struggling, but Gen Y is still very optimistic about their financial future. Nearly 90% of those 18-34 believe they have enough money now or expect that they will in the future.You should be optimistic too.
According to Javelin Strategy and Research, in just two years, by 2015, Gen Y income will exceed that of Baby Boomers. By 2020, their income is projected to exceed that of both Baby Boomers and Gen X. That’s just seven years away.
By 2025, Gen Y’s combined income is expected to account for 46% of the nation’s income. Gen Y consumer spending is expected to grow to $1.4 trillion annually and represent 30 percent of total retail sales by 2020. So, while Gen Y might not have assets or a lot of spending power today, they will. And unless you go after this crowd now and get them firmly entrenched, you’ll miss a huge opportunity