It’s no secret that the recession has had a lasting effect on the entire nation, but some experts believe that for late teens and young adults, in particular, the recession could have scarred them for life. Researchers from UCLA and the International Monetary Fund have recently determined that the recession could have had the same lasting effects as the Great Depression.
The Implications of the Recession
The researchers said there are likely to be some definite implications of the recent recession on the current generation of young Americans. They believe that many will likely take on similar behaviors to those from the Great Depression by becoming conservative spenders and investors. This will come, in part, from the struggles they saw in family and friends as they take time to contemplate the power they will have over their own destiny.
Specific Concerns of Late Teens and Young Adults
The researchers noted that there are a few major concerns that individuals in this age group will likely have in reference to the recession:
- They will likely concern themselves with home values just as they watched their parents do.
- Once they started working, they may constantly concern themselves with getting laid off.
- They may worry about the security of their 401(k) plans.
- Many will probably not want to risk their money in the stock market due to watching their parents lose thousands.
According to recent research from Fidelity Investments, Americans ages 22 to 33 are shifting toward more conservative financial behaviors as well. The experts believe it may take many years for Americans to adopt a liberal attitude toward the economy and finances again.
Have you become a more conservative spender since the recession?