A change in confidence
Zach Hagadone
In the epigraph to Ernest Hemingway’s famous novel The Sun Also Rises, the author included this six-word quotation from Gertrude Stein: “You are all a lost generation.”
Stein, a powerful writer and social critic, was referring to the generation that came of age during World War I and its attendant social and economic crises. Her point was that kids like Hemingway never really had a chance starting out. If they weren’t killed, crippled or psychologically maimed by the war, then they were practically guaranteed an adulthood haunted by poverty. The result was a deep cultural cynicism and mistrust – even disbelief – in supposedly sacred institutions.
Since then, Stein’s “Lost Generation” moniker has been used in other times when war or economics (or both) cause young people to lose faith in “the system.” It’s been applied to Vietnam War veterans and, more recently, the cohort that reached working age during Japan’s economically bleak 1990s.
Today’s Lost Generation may well turn out to be college-age Americans, who are looking uneasily from the university walls at a devastated labor market, a shattered body politic, two wars that have been gobbling up lives and the federal budget since many of them had baby teeth, and a financial system held together by the policy equivalent of duct tape and baling twine.
Kids these days may be excused for a certain measure of trepidation, and it’s starting to show up in a big way. According to a recent study funded by the National Endowment for Financial Education, a full 93 percent of college students say the economic crisis has affected their financial lives – most notably in the area of “financial confidence.”
Conducted at the University of Arizona from February 2009 to April 2009, the Arizona Pathways to Life Success in University Students found an average 19 percent drop in self-assessed financial knowledge, even as factual knowledge of financial basics held steady.
That means students today simply don’t think they have the tools to save, maintain good credit or adopt other financially mature behaviors.
Understandably, this lack of financial self confidence has bred risky habits. The study reports a 78 percent increase in students postponing health care, a 26 percent increase in students using one credit card to pay off another, and average credit card debt skyrocketing 64 percent.
These trends are evidence of something deeper, the study suggests. An overwhelming number of students reported they have “only some” trust in government, business, banks and other major institutions, and 20 percent reported “hardly any confidence.”
I’ve spoken with adults whose own views would probably fit right with that breakdown, but they’ve already established working lives, bank accounts, credit scores and educations. In short, they’ve already “bought in.”
Lacking trust or belief in the institutions that are supposed to govern their futures, and lacking any say in the matter, students are ham-stringing themselves by refusing to invest in the first place.
For instance: dropped classes have increased 169 percent; “leaves of absence” have risen 106 percent; quality of relationships and psychological well-being have fallen 6 percent and 5 percent, respectively; and physical and academic well-being have each declined 3 percent. Educational debt has also increased a shocking 80 percent.
None of this is even remotely offset by the study’s one bright spot: budgeting has increased roughly 3 percent among students who reported feeling the most affected by the crisis.
When I graduated from college seven years ago, things were somewhat better. With a degree in-hand I had about $17,000 in student loan debt – not bad compared to some of my classmates – and a job right out of the gate. I hadn’t ruined my credit and was living in a nice apartment in downtown Boise.
Most important, I had about four years to establish myself before the wheels came off the economy. I still didn’t have time to build up a retirement account, seniority in a company or invest in a home, so I expect that things will be harder for me in the coming years than I would have expected back when I was 18.
I can’t imagine stepping into this mess as a newly minted grad at the tender age of 22, and I bet a lot of the 22-year-old grads can’t either. That’s why, according to the study, the crisis of confidence among college students may end up being one of the biggest sleeper threats to the nascent economic recovery – made all the worse because it can’t be fixed by a bailout and it’s the antithesis of a “shovel ready” project.
According to the study, the best solution is going to come from parents:
“‘From the current study, we know that nearly 80 percent of students are financially dependent on their parents, and we know from earlier APLUS research that parents are the top influencer when it comes to students’ financial knowledge, attitudes and behaviors,’ Beck says. ‘That puts parents in a powerful position to help their young people navigate the wake of crisis in ways that repair and restore our economy rather than hobbling it for years to come.’”
![[Print]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/print.png)
![[Email]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/email_2.png)
![[RSS Feed]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/rssfeed.png)
![[del.icio.us]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/delicious.png)
![[Facebook]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/facebook.png)
![[linkedin]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/linkedin.png)
![[Twitter]](http://idahobusinessreview.com/wp-content/plugins/tdc-sociable-toolbar/twitter.png)
Subscribers get free access to our whitepaper library. Recent topics include: |
|
Already a subscriber? Claim your Whitepapers here. | |
February 15th, 2010 at 12:29 pm
Remember that the generation that had the least – the one that grew up in the 30s – became known as the “Greatest Generation.” The circumstances of today’s young generation fits that moment in history much more than that of the Lost Generation. Both the challenges and opportunities are greater than we faced after WWI. Fix Wall Street, the health care system, end dependence on foreign oil and the $700B/yr cash outflow that goes with it, and create a more vibrant, innovative economy, and this generation won’t be “lost” at all. These are tall orders, but are they more daunting than defeating the Wehrmacht? I don’t think so.
February 15th, 2010 at 1:58 pm
The parents might be happy to help if they had any money to help out WITH….(oh, sorry Zach; I meant “..with which to help out.”
February 15th, 2010 at 6:59 pm
You have compressed time a bit, there Zach. When these soon to be grads were in Middle School, this country was at peace with the world and we had a BALANCED budget–in fact we were lowering the amount of debt we had. The eight years of “Shrub”..he was too much of a light weight to be called a Bush–saw us more than double our national debt, start two wars–one the dumbest foreign policy decision by America, EVER!-and piss of the world with our arrogant, self-centered ways.
You don’t have to go to their kindergarten years or earlier for these grads to see when times were much better. Just have think back to when the hormones were starting to kick in!
February 17th, 2010 at 1:58 am
[...] For Living The Life Of Your …A reflection on partnership working Autism Charitys
November 8th, 2010 at 1:21 am
Thank you……
I totally go along you! I have often felt that way but nobody really would like to take it as seriously as we do apparently. Excellent blog anyway, I am going to have to stop by more frequently….
December 10th, 2010 at 12:53 am
I appreciate the time you positioned on this purpose or on this post. although u have fascinating ideas.
April 29th, 2011 at 3:22 am
ben 10 oyunları…
sünger bob oyunları…
April 29th, 2011 at 11:06 am
çizgi film oyunları…
çizgi film izle…
April 29th, 2011 at 1:27 pm
kral oyun oyna…
yeni oyunlar…
May 1st, 2011 at 2:29 pm
Software, Graphics…
Games,Ebooks,Documentaries…
May 2nd, 2011 at 2:01 pm
mobilya kampanyaları…
mobilya, öobilya kampanya…
May 3rd, 2011 at 6:18 am
kitap özetleri…
kampanyaları…
May 3rd, 2011 at 2:46 pm
Biber Hapı…
biber hapı, biber kapsülü…
May 3rd, 2011 at 3:43 pm
Fx15…
Fx15, Fx15 hapı…
May 6th, 2011 at 12:20 pm
billiards…
Free Online Games billiards ! play Now http://arbgate.com/billiards.html...
May 8th, 2011 at 1:50 pm
Maurers…
Maurers, Maurers zayıflama…
May 10th, 2011 at 8:18 am
kiralik daire…
kiralik daireler, kiralik daire…
May 15th, 2011 at 3:24 pm
Hey {this is a|this can be a|it is a} {real|actual} cool {website|web site}…
Hey I found this website to be really fascinating! Bookmarked!…
May 23rd, 2011 at 1:00 pm
Sears Printable Coupons…
It is always advisable to have printable coupons which you can download and print them instead of going for purchasing the coupons physically….
May 25th, 2011 at 1:14 pm
Great Site…
[...]check this out as this contains important information about[...]……
May 26th, 2011 at 2:59 am
How to buy replacement Windows?…
If you would like to buy replacement windows, then you need to know how to go about it to make the best choice….
May 27th, 2011 at 3:32 pm
online casinos usa…
online casinos usa…
May 28th, 2011 at 8:39 am
Solar Panels For Homes…
[...]Home made solar panels in your household developed over time as the distinct alternate in the soaring necessities related to household electrical power……
May 29th, 2011 at 1:00 am
How To Burn Belly Fat?…
[...]stomach fat could be an extremely spirit killing personal problem and is also the main cause of numerous soundness bad aspects along with loss of libido, weakness, depression and hot flushes and it all is in the end a shift in hormonal agent produ…
May 29th, 2011 at 10:44 am
Why don’t others write as good as you?…
If perhaps all of the sites at the top 10 could write like your story there. You have earned lots of credit because of this. Thumbs up!…
May 31st, 2011 at 7:55 am
Get Healthy With A Colon Cleanse…
[...]just below, are some totally unrelated sites to ours, however, they are definitely worth checking out[...]…
May 31st, 2011 at 11:43 pm
Transmission Rebuild Kits…
[...]transmission rebuild kits alter for each vehicle type or maybe over the discretion with the retail merchant. Second take into consideration may be the value allowance……
June 3rd, 2011 at 1:43 pm
The best website……
[...]here are some links to sites that we link to because we think they are worth visiting[...]……
June 4th, 2011 at 5:41 am
Trackback Link…
[…] … great article that everyone should read […] …
June 4th, 2011 at 8:46 am
Nice Site…
[…] … great article that everyone should read […] …
June 4th, 2011 at 9:53 am
Please read my blog too!…
I enjoyed reading yours!…
June 5th, 2011 at 1:00 am
Trackback Link…
[…] … great article that everyone should read […] …
June 6th, 2011 at 2:01 pm
usa online casinos…
usa online casinos…
June 8th, 2011 at 10:53 pm
Nice Site…
[…] … great article that everyone should read […] …
June 10th, 2011 at 2:49 am
Links Trackback…
[...]Sites of interest we have a link to[...]……
June 11th, 2011 at 5:55 am
Our Trackback…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
June 11th, 2011 at 7:01 am
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……