3 GenerationsAspirations and hard choices in the new economy

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RESEARCH OVERVIEWBackground & Methodology

A year after the financial crisis, Sachs Insights embarked on an in-depth look at life in the new economy. Research was conducted September through October 2009 in 23 markets across the country and included:

• Half followed by affinity groups with close friends • 30 Self-reported “video confessional” diaries from: Atlanta, Denver, Detroit, Indianapolis, New Orleans,

Orange County, and more.• 130 respondents representing a range of backgrounds:

• Day in the Life interviews• Range of income, occupations, family composition, and ethnicity• Some hit hard (job loss, foreclosure)• Some more fortunate

25 in-depth ethnographies in: Boston, MA

Chicago, IL Dallas, TX

Los Angeles, CA New York City, NY

Orlando, FL Philadelphia, PA

Seattle, WA Washington DC

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Three Generations: Three Perspectives

Young BoomersAges 45–59

Generation XAges 30–44

MillennialsAges 22–29

• Many don’t have the financial security they worked for, hoped for, and expected at this life stage.

• Many see grim prospects in the current job market due to working their entire lives in traditional careers.

• Some are still cautiously optimistic regardless of the challenging economic uncertainty.

• They came of age in the 90s recession. Now they are experiencing another downturn just as many are building lives with families of their own.

• They live paycheck to paycheck and many can’t save for the future.

• They have low expectations for retirement. Many feel that work is a “life sentence.”.

• Many GEN Xers are trying to keep a positive outlook in the face of problems they see as outside their control.

• Having come of age in the post-9/11 era, many accept and expect that their world can (and will) change on a dime.

• Many are “stuck” and have had to put their dreams on hold.

• The downturn is seen as a wake-up call for their generation.

• Millennials turn to their support network of friends as a safety net.

• Social networks empower them to crowd-source jobs and homes.

Aspirations & hard choices in the new economyAn ethnographic exploration of the impact, realities, and opportunities of the economic downturn.

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Key Findings Across GenerationsAcross generations, they are redefining needs vs. wants.

Fear inspires a desire to save – a new behavior for a new reality

Many are focused on value – thrifty behaviors that once seemed “downscale” are now points of pride.

Time used to be a valued commodity – it was worth paying extra to save just a little.

Many now see value in investing time to plan, research, and locate the right price… it feels good to spend wisely. However, many miss the loss of spontaneity. Spending on a whim is now seen as a luxury.

They are leveraging online resources to find and create deals. Blogs, auctions, and social networks are channels for savings.

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Key Findings Across Generations (Continued)DIY is a point of pride – favored for home-improvement and self-improvement.

When it comes to dining, drinking and entertainment – home is the new “hotspot.”

Some purchases fall into the “gotta have it” category, such as smartphones, vacations, and healthy foods.

Although store brands are getting greater consideration, almost all have certain brands they simply will not give up.

Many are newly grateful for what they have and feel positively about living within their means. They aim to live life more simply.

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Thank You!

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