The Financially-Scarred Millennials

I have no idea where the jet planes, islands, and tigers on a gold leash are.

I have no idea where the jet planes, islands, and tigers on a gold leash are.

A new study found that millennials are the most fiscally conservative generation since the Great Depression, according to the Los Angeles Times.

Not only does this mean that we are more likely to save money, but it also means we are less likely to invest in the stock market. In fact, the study found that more than two-thirds of millennials don’t think it’s a good idea to invest.

The reason our generation is so financially risk-averse? The recent recession apparently scarred us.

“They have a Depression-era mind-set largely because they experienced market volatility and job security issues very early in their careers, or watched their parents experience them, and it has had a significant impact on their attitudes and behaviors,” said the head of investor insights at UBS, the company that conducted the study.

We, like the generations that have come before us, are not forced to take crash courses in financial planning in high school or college. But while we may have access to more financial information and guidebooks than any group of twenty-somethings that came before us, the financial consequences of messing up through a bad investment or business endeavor are far greater for us than they ever were for our parents.

For millenials, the hope of achieving the American Dream is long gone. Maybe Lorde (a.k.a. the new voice of our generation) is on to something: we are living in the ruins of the palace in our dreams.