The Destiny of (Y)our Echo:
How Are You Preparing the Next Generation?
April, 2007
by Kelly C. Ruggles
One generation parents another. As children mature, a delicate balance becomes the greatest challenge: shelter children and simultaneously create values and independence.
Presently, two generations demand the majority of America's attention. One cannot ignore the dominant influence of the generation known as "Baby Boomers," generally categorized as people born between 1946 and 1964. Yet, a larger and considerably different generation steadily matures. The Baby Boomers have given birth to a generation of "Echo Boomers." Other titles such as "Generation Y" and the "Digital Generation" also refer to the children born between 1979 and 1996.
Some demographers may interpret the Echo Boomers with births ranging from 1977 to the present. Additionally, some may have been born to "Generation X," a smaller generational classification with births ranging from the mid 1960's to the late 1970's.
| Children will generally imitate their parents and spendthrift parents will often raise financially careless children. Direct children toward a path of a diligent investing early in life and saving will be a natural act as an adult. |
Many differences separate the Baby Boomers from the Echo Boomers. As children, the Baby Boomers appreciated a one hour show on Channel Thirteen. Echo Boomers may watch more than thirteen channels in any given hour. Baby Boomers once played records whereas Echo Boomers will break records. For Baby Boomers, Walt Disney had a place in California; his Florida resort was simply a concept until 1971. Soccer was a foreign sport for most Baby Boomers while most Echo Boomers play the sport.
The Echo Boomers are expected to influence changes in marketing, advertising, brand loyalty, and product longevity. Their attitudes and spending habits will be formed by an increasingly diversified society and the cautionary threats of terrorism. They will face continued issues such as crime, violence, disease, and the role of government. The generation's descriptive names suggest variables and repercussions.
As this younger generation gains momentum, Baby Boomers and others must address the financial considerations surrounding their families. Baby Boomers will be forced to make concurrent financial decisions regarding retirement planning, elderly parent care, college expense funding, and their own long-term care needs.
Regardless of the generational differences, our society cannot ignore the loud echo. One day, Echo Boomers will receive inheritances from their parents, the Baby Boomers.
Inevitably, Echo Boomers will be influenced by society and develop opinions based on their experiences. However, parents will still play one of the most important roles in developing personal values and financial responsibility. Children will generally imitate their parents and spendthrift parents will often raise financially careless children. Therefore, people living a life of high debt and reckless spending behaviors should not expect their children to act prudently. Direct children toward a path of a diligent investing early in life and saving will be a natural act as an adult.
©2007, Kelly C. Ruggles
Kelly C. Ruggles, President of American Reliance Group, Inc., is a registered investment advisor. Mr. Ruggles is the author of "The Financial Playbook" for Retirement.
Mr Ruggles does not intend to provide personalized investment advice through this publication and does not represent that the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions.
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