A new approach to raising money-smart kids needs to be embraced by parents of Generation Z (children born between 1997 and 2004). While the parents are adjusting to a tough economy and a "new normal" for investing, the children will be forever marked by the recession and the societal changes because of it. Parents in the past may have wrestled with whether or not to give an allowance and if so, whether to tie it to chores. Parents today have a bigger dilemma. They are wondering how to raise a self -sufficient child and the answer to that question will make or break whether the child survives and thrives financially in the future.
There is no doubt that Generation Z will feel the compounding effects of the bursting of the real estate bubble in 2008 with a net loss of wealth in American households of $11.2 trillion dollars. While these youngsters slept soundly in their beds at night, there were decisions made that mortgaged their future with $700 billion initially committed for TARP, $1.2 trillion for federal stimulus programs, and $6.4 trillion for Federal Reserve rescue efforts. Forget "new normal." This is the "normal" for Generation Z. They are facing an uncertain future with continued high unemployment rates, increasing cost of college tuition, and the possibility of a sustained period of low growth in the U.S. economy.
Three Financial Lessons Gen Z Needs to Learn to Survive
