# Children aren’t the only ones with changing attitudes to money
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-07-21
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Changing Demographics: The Future of Financial Literacy
Meta Description: As demographics evolve, financial decisions change for tomorrow's consumers. Learn how Experian's data-driven model helps brands adapt for the future.
Tags: featured
Tag URLs: featured (https://financedigest.com/tag/featured)
URL: https://financedigest.com/children-arent-the-only-ones-with-changing-attitudes-to-moneyhtml

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_**Richard Jenkings**, demographics expert at_ [_Experian_](http://www.experian.co.uk/)

It’s tempting to think children will pick up everything they need to know about financial matters, just as and when they need to.

However, demographics are changing and tomorrow’s consumers will be different from those of today. Any lessons they pick up now, as children, may be not be relevant when it’s time to cash them in as financially independent adults with important decisions to make.

Earlier this month, My [Money](https://www.financedigest.com/money-management-for-couples-navigating-finances-in-a-relationship.html "Money Management for Couples: Navigating Finances in a Relationship") Week ran with the aim of improving schoolchildren’s financial literacy. Yet it also offers a reminder for brands to consider how they market to changing demographics, and what messages will [hit at the right time](https://www.financedigest.com/coca-cola-hbc-flags-one-time-195-million-hit-from-russian-operations.html "Coca-Cola HBC flags one-time 5 million hit from Russian operations") for the right segment – when they are most receptive.

The only constant in life is change – and change is happening faster than ever. It’s no wonder that young people face an often-bewildering array of financial lifestyle choices, products, and [important decisions when the backdrop is more changeable than ever](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever").

Experian’s model is based on a wide range of data, including demographics, lifestyle, social, economic, behavioral, [product consumption](https://www.financedigest.com/food-grade-phosphates-market-regional-industry-segmentation-analysis-by-production-consumption-revenue-and-growth-rate-by-2027.html "Food Grade Phosphates Market Regional Industry Segmentation, Analysis by Production, Consumption, Revenue and Growth Rate by 2027"), service and channel preferences for more than 49 million UK adults, as well as a 220,000-strong YouGov panel. It offers a view on the [changing demographics of consumers](https://www.financedigest.com/the-future-of-retail-and-the-ways-that-retail-has-changed-for-consumers-during-the-pandemic.html "The future of retail and the ways that retail has changed for consumers during the pandemic"), covering lifestyle and attitudes to finance.

**Don’t assume the future is going to be the same**

As the [cost of living rises](https://www.financedigest.com/fortum-says-rising-costs-of-nordic-power-trading-are-worrying.html "Fortum says rising costs of Nordic power trading are “worrying”") and consumers struggle to get on the property ladder, older demographics that exist today will disappear as recognisable forces – and new ones have already emerged. For one, over the past decade over one [million people who would previously have bought houses](https://www.financedigest.com/spains-king-felipe-reveals-2-6-million-euros-in-wealth-in-bid-to-make-royal-house-more-transparent.html "Spain’s King Felipe reveals 2.6 million euros in wealth in bid to make Royal House more transparent"), have been forced to rent instead. The often insurmountable challenge of securing a property has now [made Britain](https://www.financedigest.com/britains-next-buys-failed-furniture-retailer-made-com-400-jobs-axed.html "Britain’s Next buys failed furniture retailer Made.com, 400 jobs axed") a country of renters who prefer to put their discretionary spending on cars or holidays rather than expensive houses.

The Millennial generation and the Centennial generation just coming into the workforce are different in many ways to proceeding generation. They are not email responsive: to them it is ‘old hat’. They do their thing collectively on social media. For the older, professional, population, using Facebook is cool, but for Millennials, it’s so [last year](https://www.financedigest.com/crypto-investors-step-up-risk-management-after-last-years-meltdowns.html "Crypto investors step up risk management after last year’s meltdowns") – or last decade!

They [care about social](https://www.financedigest.com/tmwi-appointed-by-zeiss-vision-care-to-drive-integrated-paid-social-campaigns.html "tmwi appointed by ZEISS Vision Care to drive integrated paid social campaigns") issues. They have shown a [rise in political participation brought into clear focus by the recent election and are not afraid to share](https://www.financedigest.com/world-shares-rise-u-s-yield-curve-inverts-after-strong-jobs-data.html "World shares rise, U.S. yield curve inverts after strong jobs data") their emotions and get involved, as we have seen recently in reactions and support to events in Manchester and London. To communicate, a brand must be genuine and have be socially-conscious bulletproof.

Although they will have a different financial life, many of the same principles of financially sound behaviour hold generally true: [Don’t spend beyond what you have or can afford to borrow… You will always have to trade](https://www.financedigest.com/online-trading-is-like-swimming-dont-jump-in-the-deep-end-without-having-lessons.html "Online trading is like swimming – don’t jump in the deep end without having lessons") off ‘jam today’ against ‘jam tomorrow’.

This group of [young adults](https://www.financedigest.com/financial-literacy-for-young-adults-essential-money-skills-for-success.html "Financial Literacy for Young Adults: Essential Money Skills for Success") in previous times would have been first-time buyers much earlier. Now their aspiration are as renters who hope to buy one day – if it ever becomes possible. They can also be termed as the ‘jilted generation’, because they are less well off than preceding generations who benefitted from factors such final salary pensions and high [house price](https://www.financedigest.com/uk-house-prices-show-unexpected-strength-in-october-nationwide.html "UK house prices show unexpected strength in October: Nationwide") inflation, at the right time for them.

Communicating with this new cohort of consumers requires a careful understanding of what has changed, and how economic and demographic factors are interacting to create new kinds of consumers [facing new kinds of challenges](https://www.financedigest.com/overcoming-challenges-faced-in-business-from-one-woman-to-another.html "Overcoming challenges faced in business: from one woman to another") – and needing new kinds of financial solutions and communications to cope with them.

**New styles of** spending now and later in life

Despite the hardships this [younger generation](https://www.financedigest.com/british-monarchys-fashion-mantle-passes-to-younger-generation.html "British monarchy’s fashion mantle passes to younger generation") face from high house prices, low wage growth, repayment of higher student loans and the cost of renting, they care strongly about their careers and tend to be very mobile and digitally literate. Given the economic challenges, enjoying the here and now seems a reasonable response to where they find themselves.

They should know of course that lots of long haul trips now less [money for savings](https://www.financedigest.com/saving-money-hacks.html "Saving money hacks") or pensions later. As always it’s about a sensible balance between [living well now and potentially living comfortably later](https://www.financedigest.com/cost-of-living-crisis-prompts-buy-now-pay-later-warning-from-uks-fca.html "Cost-of-living crisis prompts ‘buy now, pay later’ warning from UK’s FCA"). It’s easy for an older [person to give advice but much harder for someone living in interesting times](https://www.financedigest.com/elon-musk-named-times-2021-person-of-the-year.html "Elon Musk named Time’s 2021 ‘Person of the Year’") to actually take it.

Communicating with this generation is better over email than with their elders, but any interaction with them is more [fluid using their mobile device](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-fluid-warmer-devices-market.html "Innovation at periodic intervals to upscale the Fluid Warmer Devices Market") via apps – and they’re almost twice as likely to respond to social media than any other demographic. Unlike earlier generations, print media advertising is not a useful channel, but cinema or billboards still cut through.

As time goes on and the group of aging homeowners shrinks it may have a further knock-on effect on younger generations. When they become pensioners they will not be able to release the equity in their homes, which in [times past allowed a wave of money to flow](https://www.financedigest.com/in-line-transit-time-ultrasonic-flow-meters-sales-are-set-to-be-valued-at-us-337-5-mn-in-2021.html "In-Line Transit Time Ultrasonic Flow Meters sales are set to be valued at US$ 337.5 Mn in 2021") down generations. In time, there will be less money to pass onto following generations.

Part of My [Money Week for children is to begin to get a better understanding of the financial instruments and best practices to help them on their life](https://www.financedigest.com/minimalist-money-simplifying-finances-for-a-stress-free-life.html "Minimalist money: simplifying finances for a stress-free life") journey. For brands this means understanding customers closely both now, and how they interact with their finances – and those of other generations.

One of the challenges in [marketing is properly taking account of the gradual but seismic changes and adapting the communications](https://www.financedigest.com/military-communications-market-worldwide-growth-trendsleading-segments-and-opportunities-to-2028.html "Military Communications Market Worldwide Growth, Trends,leading Segments And Opportunities to 2028"), products and advice to a widening pool of experiences and audiences that will have remarkably different life experiences.

But in the end some things don’t change and Mr Micawber’s famous, and oft-quoted recipe for happiness hasn’t changed since Dickens wrote it down in his 1850 David Copperfield: “Annual income twenty pounds, annual expenditure nineteen \[pounds\] nineteen \[shillings\] and six \[pence\], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

Far be it for me to disagree.


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