Theế hệ y


What separates Generation Y from X? And hey Gen Z, welcome lớn the party! What’s the cutoff? How old is each generation? Are they really that different?

It’s easy to lớn see why there is so much confusion about generational cohorts.

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If you’ve sầu ever felt muddled by this "alphabet soup" of names — you’re not alone. The real frustration hits when you realize that Millennial consumers represent the highest-spending generation in 2020 — with a projected $1.4 trillion tab.

And though their current wealth has been dragged down by not one but two “once-in-a-lifetime” economic crises during their most impactful career years, Millennials stvà to lớn inherit over $68 trillion from Baby Boomer parents by the year 2030, setting them up khổng lồ potentially be the most wealthy generation in U.S. history.

Generation Z isn’t far behind, projected to lớn hit $33 trillion in income by 2030 — that’s more than a quarter of all global income — và pass Millennials in spending power the year after. 3

No matter how you slice the data, the younger generations have never been more critical to lớn your financial institution’s future.

Unless you understvà who they are và what they want, you won’t capture a dollar of their money.

People grow older. Birthdays stay the same.

A comtháng source of confusion when labeling generations is their age. Generational cohorts are defined (loosely) by birth year, not current age. The reason is simple — generations get older in groups. If you think of Millennials as college kids (18 - 22), then not only are you out of date — you’re thinking of a stage in life, not a generation. Millennials are now well out of college, & that life stage is dominated by Gen Z.

Another example, a member of Generation X who turned 18 in 1998 would now be over 40. In that time, he or she cares about vastly different issues & is receptive sầu to lớn a new phối of sale messages. Regardless of your age, you will always belong lớn the generation you were born inlớn.

The breakdown by age looks lượt thích this:

Baby Boomers: Baby boomers were born between 1946 & 1964. They"re currently between 57-75 years old (71.6 million in the U.S.)

Gen X: Gen X was born between 1965 và 1979/80 and is currently between 41-56 years old (65.2 million people in the U.S.)

Gen Y: Gen Y, or Millennials, were born between 1981 và 1994/6. They are currently between 25 and 40 years old (72.1 million in the U.S.)

Gen Y.1 = 25-29 years old (around 31 million people in the U.S.)

Gen Y.2 = 29-39 (around 42 million people in the U.S.)

Gen Z: Gen Z is the newest generation, born between 1997 and 2012/15. They are currently between 6 & 24 years old (nearly 68 million in the U.S.)

The term “Millennial” has become the popular way lớn reference both segments of Gen Y (more on Y.1 and Y.2 below).

And as for “Zillennials,” those wedged at the tail end of Millennials & the start of Gen Z are sometimes labeled with this moniker — a group made up of people born between 1994 và the year 2000.

Realistically, the name Generation Z is a placeholder for the youngest people on the planet. It’s likely to morph as they leave sầu adolescence and mature inkhổng lồ their adult identities.

Why are generations named after letters?

It started with Generation X, people born between 1965-1980. The preceding generation was the Baby Boomers, born 1946-1964. Post World War II, Americans enjoyed new-found prosperity, which resulted in a "baby boom." The children born as a result were dubbed the Baby Boomers.

But the generation that followed the Boomers didn’t have a blatant cultural identifier. In fact, that’s the anecdotal origin of the term Gen X — illustrating the undetermined characteristics they would come to lớn be known by. Depending on whom you ask, it was either sociologists, a novedanh mục, or Billy Idol who cemented this phrase in our vocabulary.

From there on it was all down-alphabet. The generation following Gen X naturally became Gen Y, born 1981-1996 (give or take a few years on either end). The term “Millennial” is widely credited to Neil Howe, along with William Strauss. The pair coined the term in 1989 when the impending turn of the millennium began to feature heavily in the cultural consciousness.

Generation Z refers lớn babies born from the late 90s through today. A flurry of potential labels has also appeared, including Gen Tech, post-Millennials, iGeneration, Gen Y-Fi, and Zoomers.

Splitting up Gen Y

Javelin Research noticed that not all Millennials are currently in the same stage of life. While all Millennials were born around the turn of the century, some of them are still in early adulthood, wrestling with new careers và settling down, while the older Millennials have sầu a home & are building a family. You can imagine how having a child might change your interests & priorities, so for kinh doanh purposes, it"s useful khổng lồ split this generation into Gen Y.1 & Gen Y.2.

Not only are the two groups culturally different, but they’re in vastly different phases of their financial life. The younger group are just now flexing their buying power. The latter group has a more extensive history and may be refinancing their mortgage and raising children. The contrast in priorities and needs is stark.

The same xúc tích và ngắn gọn can be applied to lớn any generation that is in this stage of life or younger. As we get older, we tover to lớn homogenize & face similar life issues. The younger we are, the more dramatic each stage of life is. Consider the difference between someone in elementary school & high school. While they might be the same generation, they have sầu very different views and needs.

Marketing to lớn young generations as a single cohort will not be nearly as effective as segmenting your strategy và messaging.

Why are generation cohort names important?

Each generation label serves as a short-hand lớn reference nearly đôi mươi years of attitude, motivations, & historical events. Few individuals self-identify as Gen X, Millennial, or any other name.

They’re useful terms for marketers & tover to lớn trickle down inkhổng lồ common usage. Again, it’s important khổng lồ emphakích cỡ that referring to a cohort only by the age range gets complicated quickly. Ten years from now, the priorities of Millennials will have changed — & kinh doanh tactics must adjust instep. There are also other categories of cohorts you can use to lớn better underst& consumers going beyond age or generation..

Rethành viên, these arbitrary generational cutoff points are just that. They aren’t an exact science, and are continually evolving.

Whatever terminology or grouping you use, the goal is to reach people with marketing messages relevant to their phase of life. In short, no matter how many letters get added lớn the alphabet soup, the most important thing you can vì is seek to understand the soup du jour for the type of consumer you want lớn attract.

What makes each generation different?

Before we dive into lớn each generation, remember that the exact years born are in dispute, because there are no comparably definitive thresholds by which the later generations (after Boomers) are defined. But this should give sầu you a general range lớn help identify what generation you belong in.

The other fact lớn remember is that new technology is typically first adopted by the youngest generation & then is gradually adopted by the older generations. As an example, 96% of Americans have sầu a điện thoại thông minh, but Gen Z (the youngest generation) is the highest user.

The Baby Boomer Generation


Boomer Birth Years: 1946 khổng lồ 1964

Current Age: 57 lớn 75

Generation Size: 71.6 million

Media Consumption: Baby boomers are the biggest consumers of traditional truyền thông media like television, radio, magazines, and newspaper. Despite being so traditional, 90% of baby boomers have sầu a Facebook account. This generation has begun lớn adopt more giải pháp công nghệ in order to lớn stay in touch with family members & reconnect with old friends.

Banking Habits: Boomers prefer khổng lồ go inkhổng lồ a branch to lớn perkhung transactions. This generational cohort still prefers to lớn use cash, especially for purchases under $5.

Shaping Events: Post-WWII optimism, the cold war, & the hippie movement.

What"s next on their financial horizon: This generation is experiencing the highest growth in student loan debt. While this might seem counterintuitive, it can be explained by the fact that this generation has the most wealth and is looking to lớn help their children with their student debt. They have a belief that you should take care of your children enough to mix them on the right course và don"t plan on leaving any inheritance. With more Americans outliving their retirement fund, declining pensions, & social security in jeopardy, ensuring you can successfully fund retirement is a major concern for Boomers.

Generation X


Gen X Birth Years: 1965 khổng lồ 1979/80

Current Age: 41 to 56

Other Nicknames: "Latchkey" generation, MTV generation

Generation Size: 65.2 million

Media Consumption: Gen X still reads newspapers, magazines, listens lớn the radio, and watches TV (about 165 hours" worth of TV a month). However, they are also digitally savvy and spkết thúc roughly 7 hours a week on Facebook (the highest of any generational cohort).

Banking Habits: Since they are digitally savvy, Gen X will vày some research và financial management online, but still prefer to do transactions in person. They believe sầu banking is a person-to-person business và demonstrate brvà loyalty.

Shaping Events: End of the cold war, the rise of personal computing, & feeling lost between the two huge generations.

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What"s next on Gen X"s financial horizon: Gen X is trying lớn raise a family, pay off student debt, và take care of aging parents. These demands put a high strain on their resources. The average Gen Xer carries $142,000 in debt, though most of this is in their mortgage. They are looking to reduce their debt while building a stable saving plan for the future.

Millennials (Gen Y)


Millennial Birth Years: 1981 lớn 1994/6

Current Age: 25 to lớn 40

Other Nicknames: Gen Y, Gen Me, Gen We, Eđến Boomers

Generation Size: 72.1 million

Media Consumption: 95% still watch TV, but Netflix edges out traditional cable as the preferred provider. Cord-cutting in favor of streaming services is the popular choice. This generation is extremely comfortable with Smartphone devices, but 32% will still use a computer for purchases. They typically have multiple social truyền thông media accounts.

Banking Habits: Millennials have less br& loyalty than previous generations. They prefer to siêu thị product & features first, và have little patience for inefficient or poor service. Because of this, Millennials place their trust in brands with superior hàng hóa history such as Apple và Google. They seek digital tools to lớn help manage their debt và see their banks as transactional as opposed to relational.

Shaping Events: The Great Recession, the technological explosion of the mạng internet & social truyền thông media, và 9/11

Gen Z


Gen Z Birth Years: 1997 khổng lồ 2012/15

Currently Aged: 6 lớn 24

Other Nicknames: iGeneration, Post-millennials, Homeland Generation

Generation Size: 68 million

Media Consumption: The average Gen Zer received their first Smartphone phone at age 10.3 years. Many of them grew up playing with their parents" sản phẩm điện thoại phones or tablets. They have sầu grown up in a hyper-connected world & the smartphone is their preferred method of communication. On average, they spend 3 hours a day on their Mobile device.

Banking Habits: This generation has seen the struggle of Millennials và has adopted a more fiscally conservative approach. They want lớn avoid debt and appreciate accounts or services that aid in that endeavor. Debit cards top their priority danh sách, followed by Mobile banking.

Shaping Events: Smartphones, social truyền thông media, never knowing a country not at war, & seeing the financial struggles of their parents (Gen X).

What"s next on Gen Z"s financial horizon: Learning about personal finance. They have a svào appetite for financial education & are opening savings accounts at younger ages than prior generations.

If you want to lớn know more about Gen Z, check out this deep dive inkhổng lồ their truyền thông consumption & banking habits.

Do generations use công nghệ differently?

Younger generations have often led older Americans in their adoption and use of technology, and this largely holds true today.

Although Baby Boomers may trail Gen X and Millennials on native sầu công nghệ usage, the rate at which Boomers expand their use of công nghệ is accelerated.

In fact, Boomers are far more likely to own a smartphone than they were in 2011 (68% in 2019 vs. 25% then).

Are generations the best way khổng lồ categorize consumer behavior?

Knowing generational trends is important, as they can unveil similar attitudes & behaviors among consumers who experienced world events at the same life stage as their cohorts. And it doesn’t hurt khổng lồ understand these age groups since marketing tools & audience segmentations generally include age as a factor.

But the generations don’t tell the whole story và their behaviors can be hard to lớn lochồng down. After all, every generation grows up. So. can you rely on age ranges alone? Here"s what we think.

Do generations bank differently?

Absolutely, and for several reasons.

Each generation has been in the workforce for different lengths of time và accumulated varying degrees of wealth.

Baby Boomers have sầu an average net worth of $1,066,000 & a median net worth of $224,000.

Gen Xers average net worth is around $288,700, but the median is $59,800.

Millennials have sầu an average net worth around $76,200, but their median net worth is only $11,100.

Gen Z"s average net worth is difficult lớn report on since so much of the generation has no net worth or career as of yet.

Each generation is preparing và saving for different life stages; be that retirement, children"s college tuition, or buying a first oto.

Each generation grew up in evolving technological worlds and has chất lượng preferences in regard khổng lồ managing financial relationships.

Each generation grew up in different financial climates, which has informed their financial attitudes và opinions of institutions. However, in the past year, the COVID-19 pandemic has become the great equalizer, as all generations have sầu had to adapt to lớn a new way of banking & living.

How are these banking differences appearing in the marketplace?

Ease of use vs. personal service.

If you think bots are taking over the world, you might be right. But for Millennial và Gen Z consumers, this isn’t necessarily a bad thing. In fact, according to a recent Adobe Analytics study, 44% of Gen Z và 31% of Millennials have used a banking chatbot to answer their questions. And before you think that must be a terrible user experience, over half of both groups who actually used a chatbot said the experience was better than talking to lớn a real person.

However, for more complicated banking tasks, even the younger generations prefer the added assistance of a human representative sầu.

Security still comes first, always. But each generation has their own priorities.

When choosing a new place to lớn ngân hàng, “security” was the top-rated concern across Gen Z, Millennials, Gen X, & Boomers. “Reputation” (also known as your brand) finished second for both Gen Z and Millennial consumers.

However, for Gen Z and Boomer consumers, branch locations was the second most popular result, with “reputation” cthất bại behind. Younger consumers still care about branch locations, but weight it around the same cấp độ as an institution’s digital và ứng dụng services.

For Generation X, digital and ứng dụng services were edged out by in-person tư vấn. For Baby Boomers, banking local was more important.4 However, before you write off the importance of your online & mobile banking for these consumers…

Technology isn’t just for younger generations anymore.

The trend has long been for each new generation khổng lồ adopt digital & Mobile banking services more readily. But the COVID-19 pandemic has turned on a new wave of late-adopters who now ngân hàng digitally, too.

According to lớn a recent Zelle survey, now 82% of seniors age 55+ are banking online more frequently — with 61% and 55% turning to lớn social media & di động banking more frequently too.5

That lines up closely with the start of the Baby Boomer demographic (currently ages 57 lớn 75). And while only time will tell how lasting this shift to digital tools & services will be, the more positive your digital experience, the more likely you are to lớn extkết thúc your digital reach with this generation.

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Today, older generations are behaving more lượt thích younger generations. And if you want khổng lồ succeed in tomorrow’s market, you already need to lớn meet these younger generations where they are. Now is the time lớn extkết thúc your br& of great service beyond the branch.

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