By Sarah Hauer
Milwaukee Journal Sentinel
WWR Article Summary (tl;dr) Brian Jacobsen, chief portfolio strategist for Wells Fargo says that when it comes to financial planning, rules change. He adds, “Every generation has had to deal with changes in technology, cultural norms, politics and economics.
Go to school. Get a job. Save. Buy a house. Invest.
The basic moves to ensure a healthy financial future seem easy enough. But for some people just entering the workforce, it feels like the rules have changed.
Those who were still growing up during the financial crisis in 2007 wonder: Are smart financial moves still the same?
“The rules are always changing,” said Brian Jacobsen, chief portfolio strategist for Wells Fargo. “Every generation has had to deal with changes in technology, cultural norms, politics and economics.
“The young adults of today were children during the global financial crisis. They may have been affected by seeing their parents’ anxieties, but parents may have been more affected than kids in terms of attitudes.”
During the global financial crisis, stocks tanked and unemployment rose. The labor force dealt with job losses and insecurity. Once notable saving and investment portfolios were near worthless.
“The Great Recession made homeowners and business decision makers more risk averse,” said Marquette University professor Mark Eppli.
“Prospective homeowners no longer look at home ownership as a great low- or no-risk investment with near certain upside. Business executives quickly cut expenses after the Great Recession to maintain or grow profitability. However, they have been very slow to invest in new ventures to raise top line revenue.”
Here are some examples of how young adults are dealing with, or ought to be dealing with, common financial issues.
Rebecca Murray, 28, graduated from the University of Wisconsin-Milwaukee with a degree in social work and $30,000 in debt. She’s worked multiple jobs at nonprofits and a university since leaving school.