Decoding Tomorrow:
Futurism and Foresights Today

I was recently interviewed on the generational impacts of the economically downgraded times by an Australian magazine, and particularly how it relates to Gen Y.

Check out my answers to the journalist here:

1. How would you define Gen Y?
This the demographic born between 1979-1994 - people who have been exposed to the social markers of 'stranger danger', computers, the internet, cheque book parenting, and September 11 during their formative years.

2. Could you give me some examples of the challenges which may face Gen Y in the
current economic environment, and how do you think they will respond to them?
In 2006, one third of Australian credit card applications were from Gen Ys. It is estimated that 73% of Gen Ys were in 'substantial debt' even prior to the financial crisis, so access to money will be a challenge for them.

Having been brought up with 17 years of unprecedented economic growth, the new economic environment is a totally new ball game for Gen Ys, one in which they will need to learn to manage to manage their bank balances more responsibly. In the past, they were used to their parents guaranteeing their mobile phone contracts - now they may not find that the same buffer exists.
If the current financial crisis is anything to go by, who can blame them for having handled their own finances irresponsibly though, when society, governments and banks are not leading by example, and rewards financial excess with bailouts?

We will see a further deepening of the mistrust for financial institutions, and may see a move toward social networking based finance like Peer-to-Peer lending, which is perceived as more transparent and 'high trust'.

On the other hand, because of unaffordable real estate in Australia's major cities, a large proportion of Gen Ys have opted to stay at home well into their 20s, and few own sizeable share portfolios as neither superannuation nor saving for a rainy day has been as high a priority as backpacking in Nepal, or a new pair of designer jeans. In this sense, Gen Ys are more cushioned both in the short and long term than say Baby Boomers on the verge of retirement.
Gen Ys with insight will see this as a bump in the road, and learn from the experience.

3. Having lived through past economic hurdles, do you believe the economic
crisis will in hindsight be a pivotal point in time for Gen Y? Do you think the
economic crisis will change the way Gen Y act?
I think it will shape the future of banking and lead to greater corporate transparency, and this is something that is in tune with the Gen Y values system. Seeing the redundancies and corporate collapses first hand will lead to a new wave of entrepreneurialism amongst this creative and innovative generation, as they will be keen to take charge of their own destinies. In a sense the financial crisis proves that the Gen Y focus on living and spending for today is 'correct' - I mean, imagine saving for your superannuation for your whole life and then having a sub-prime mortgage debacle wipe out a life-time worth of savings?

Equally, starting up your own company has never been more affordable than now, and through social networking tools like facebook, myspace, and twitter communications and PR have been democratised. Gen Y don't only have their finger on the pulse of change in the world, in many ways they are the bloodstream of change in the world. They are for intellectual property infringing file-sharing, they get the web 2.0 mindset, they collaborate virtually, and having lived, breathed and dreamed online computer games, they are adaptable and team-oriented.

4. What good will come out of Gen Y because of the crisis?
It will bring to the surface their innovative bent, their creativity will shine through, and smart organisations will look to their Gen Ys for input into 'out of the box' marketing and branding campaigns that resonate with what will be Australia's largest consumer group by 2020. We will also see a greater focus not on regulation to steer the financial system, but transparency. Gen Ys have lived their entire lives for all to see on the web, and expect the same in return from the organisations they work for and invest in. The financial downgrade is also a great time for Gen Ys to upgrade their thinking - to learn, to observe and to position their business brains in profoundly connected ways so that they are in pole position when the economy turns again.

I am expecting that they will step up to the plate - if their employers won't let them, they will leave, because deep down they believe that they are better equipped to run a business than the guy in charge.

5. How will 'Gen Z' be different to Gen Y?
The 'bubble wrap' Generation is a product of Gen X (1964-1979), and is the current generation of babies born, ranging up to 'tweens' and early teens. They are already shaping parents' consumer patterns, and are seeing the financial crisis impact their parents first-hand. In this sense, they are likely to grow up more financially conservative than Gen Ys. On the other hand, they have been bubble wrapped in 'Baby Bjorns' by highly involved Gen X parents, shielded from any adversity by cotton-wool legislation, and seen more computer interfaces than human faces. This could well be the virtual generation who live as much of their lives in '2nd Life', as in first life. Expect soft skills training to be in massive demand as this generation enters the workforce over the next ten years.

6. To what extent do you think the economic and working environment of humans
effects their behaviour? Does a rapid change in environment change their
behaviour?
At the moment mass myopia is affecting human behaviour. While there is no doubt access to finance is impacting the economy, the question is how much of it is a reality and how much is just a crisis in consumer confidence? It takes a lot for people to actually change their behaviours - a study shows that 90% of coronary bypass patients go back to their old life-style patterns within 2 years of the surgery. We may see people pay off their credit cards or boost their savings accounts with the 'stimulus package' now, but even rapid change does not necessarily lead to long-term behavioural change. We thought we had learnt from 1987, 1997 and 2001, yet the current financial crisis shows that we are still affected by speed-blindness and greed.

Having said that members of my family who were exposed to the Great Depression were deeply affected by it and learnt to always freeze their left-overs and put money in the mattress. That may once again prove a wise move.