RANDALL HALLETTNSFA NATIONAL CONFERENCE, 2015

GENERATIONAL GIVING

The Basics

2

Each GenerationConsists of approximately a 20-year span (not all demographers and generation researchers agree on the exact start/stop dates)Has a unique set of values Reacts to the generation before themLooks at their generation as the standard of comparisonLooks at the next generation skeptically “these kids today…”Those born on the “cusp” may have a blended set of characteristicsThey are either idealistic, reactive, civic or adaptive

How Generational Births Will Impact Retirements

2,500,000

2,700,000

2,900,000

3,100,000

3,300,000

3,500,000

3,700,000

3,900,000

4,100,000

4,300,000

4,500,000

1940

1952

1955

1958

1961

1964

1967

1970

1973

1976

1979

1983

1986

1989

1992

1995

1998

2001

2004

births

(Boomers)

(Xers)

(Millennials)

Who Is Working Today?

43%

10%14%

33%

Veterans

Boomers

Gen X

Millennials

1,000 die per day

7,198 turned 60 every day in

2006

Youngest are 5 years old

Half the size of the

generations on either side

of them

Change in American Workers

The Generations

The Baby Boomers1943–1964

Core Values

Optimism

Team Orientation

Personal Gratification

Health and Wellness

Personal Growth

Youth

Work

Involvement

Divorce reached a low in 1960 of 9% Families moved due to GI Bill, GI housing

and industrialization First generation to live miles from

extended family Family size smaller (2-3 children) Few grandparents in the home Moms stayed home – no daycare Children spent significant time with

adult role models (mostly mom) Perception of the world as “safe”

Baby BoomersImportant EventsRosa ParksFirst Nuclear Power PlantThe Civil Rights ActJohn Glen Orbits the Earth Cuban Missile CrisisMartin Luther King Leads March on Washington, D.C.President John F. Kennedy AssassinationNational Organization for Women FoundedMartin Luther King and Robert F. Kennedy AssassinationsWoodstockWatergateKent State IncidentVietnam War

Baby-Boomer Results Very idealistic - banned together and walked through life with their fists held highGeneration gap occurred between them and their parentsCaptured phrases like “why be normal” and “question authority”They weren’t friendly toward authority figuresDid not get along with their parents and swore they would not raise their kids like they were raisedAs adults - work an average of 55 hours per week

How Boomers Learn

Want things to fit into the “big picture”

Want recognition for how well they have done

Team oriented, work well in groups

Like to explore and analyze, look at different views

Follow instructions well

Good with content

Boomer’s Educational ExperiencesOverwhelmed the school system, large class sizes

Ability grouped (red birds and blue birds)

Question authority but respect position

See life as an adventure (and school)

Emphasis on team work (cohort education)

Need silence to concentrate

Were told “you are lucky to be here, others are standing in line to get in.”

Want to feel valued

Rarely tested and not for school performance (PSAT, SAT)

Boomers at Work

Ethic = long hours show commitment

Team oriented and relationship builders (don’t like conflict – can’t we all just get along)

Not budget minded

Sensitive to feedback

Marketing to BoomersAre individualistic so they like “customized and custom-made products”

Want to look successful (lots of stuff)

Seek self-improvement

Products/services that help them reach a balanced life (work/home)

Like technology but see the problems that come with it

Boomer’s Take-Aways

The Gen X1965-1997Divorce reached an all-time high

Single-parent families became the norm

Latch-key kids were a major issue of the time

Children not as valued – looked at as a hardship

Families spread out (miles apart)

Family size = 1.7 children (many only-children)

Perception of the world as “unsafe”

Average 10 year old spent 14 ½ minutes a day

with a significant adult role model

Parents looked around and said – we need to do

this better

Core Values

Dedication

Hard Work

Conformity

Law and Order

Patience

Delayed reward

Duty before

pleasure

Adherence to

rules

Honor

Gen X Important Events Women’s Liberation Protests Watergate Scandal Energy Crisis begins Tandy and Apple Market PCs Mass Suicide in Jonestown Three Mile Island Iran Hostage Crisis John Lennon Shot and Killed Ronald Reagan Inaugurated Challenger Disaster Exxon Valdez Oil Tanker Spill HIV

Generation X ResultsThis is the conscientious, extremely pragmatic, self-sufficient generation that has a ruthless focus on the bottom-line.

Born and raised at a time when children were at the bottom of our social priorities, Gen Xers learned that they could only count on one thing - themselves. As a result, they are very "me" oriented.

They are not active voters, nor are they deeply involved in politics in general.

Parents looked around and said “we have to do this better.”

How Gen Xers LearnTask oriented – like to learn new skills

Speed is important

Self-paced learning, independent learning

Want to have fun while they learn

Informal learning environments are best

Hate group work

Want feedback from teacher

Educational ExperiencesLearned to rely on self (don’t like group work)

Distrust authority

Seek challenging environment (career education emphasis)

Want feedback on progress

Want to do things their way – like no rules and freedom on assignments

Had honors programs

Funding cut to education

Testing “mania” began with them

First daycare centers arose with them

Many latch-key kids

Gen Xers as Workers

Cynical, pessimistic and impatient with poorer people skills

Want work-life balance

Think globally and seek independence

Like technology and want an informal work environment

Don’t want the boomers’ work ethic

Communication is important and talk to adults as friends/peers (not impressed with authority)

Believe reward should be based on productivity not hours worked

Want control of self, time and future

Loyalty to people not a company

Gen Xer’s Take-Aways

The Echo Boom/Millennials…

The Millennials are almost as large as the baby boom

The Millennials are the children born between 1982 and 2002 (peaked in 1990), a

cohort called by various names:

Generation Y Echo Boom

Net GenerationMillennials

MillennialsThis generation is civic-minded, much like the previous GI Generation.

They are collectively optimistic, long-term planners, high achievers with lower rates of violent crime, teen pregnancy, smoking and alcohol use than ever before.

This generation believes that they have the potential to be great and they probably do. We are looking to them to provide us with a new definition of citizenship.

The Millennial ChildhoodThe most monumental financial boom in history.

Steady income growth through the 1990’s.

Still great disparity between races.

Saw their parents lose all their stocks and mutual funds (college funds) during the early 2000’s.

Millennial School Experiences

Many private schools, charter schools, magnet schools – all to meet the needs of the individual child –many, many choices

School uniforms, child safety, high performance standards, character education, cooperative learning and community service

Goal oriented – outcome based education (what’s in it for me)

School is a means to an end – one must endure until the next level

Interactive, participatory and engaging – are consulted by adults

Everything 24/7 and available electronically

Millennial School ExperiencesNo “grunt work” - must do “meaningful work”, participate in decisions

International flavor, celebrate diversity, different is okay

Motivated by working with bright, motivated and moral people

Student makes judgments about truth and believability of what is taught

Classroom mainstreamed – multiple levels based on ability and interest

Constantly tested and compared to peers (learned to take tests so now of little use for college admissions)

Feel pressure for high achievement

How Millennials LearnTry it their way – always looking for better, faster way of doing things

Prefer graphics before text, reading of excerpts

Like small and fast processing technology –best when networked

Want instant gratification and frequent rewards (spot)

How Millennials LearnFocus on skill development – not memorization of what they perceive they don’t need to know

Productivity is key – not attendance – so make class worthwhile or they won’t come

Have different critical thinking skills based on their high tech world not thought processing (need help here)

Rely on teacher to facilitate learning

Group think and interaction

Millennials Want to LearnWith technology

With each other

Online

In their time

In their place

Doing things that matter (most important)

Source: Achievement and the 21st Century Learner.

U.S. Total Annual Income by Generation, 2007, 2012 & 2017 (Trillions)

31Source: Javelin Strategy & Research cited in eMarketer 11/3/08 (Latest data available)

$2.96

$4.20

$3.48

$3.29

$3.91

$2.37

$3.44

$3.67

$1.89

Baby Boomers

Generation X

Generation Y

2017 2012 2007

Gen Y Are More Likely to Make Their Own Investment Decisions Than Other Generations

According to Scottrade, an online investing firm…

51% of Gen y makes their own investment decisions compared with 40% of the total population.

Only 5% of Gen Y has someone else making their investment decisions, compared with 10% of the total population.

34% of Millennials investors say their investment decisions are better than average, compared with 25% of the total population.

79% of Gen Y investors are using financial websites to get information, compared with 48% of the total population.

Scottrade is enhancing educational components of its online offerings for the Millennial consumer, and anticipating more mobile investing.

32Source: Marketing Daily, MediaPost 11/12/13)

WHAT ABOUT THE 2008 –2014 RECESSION?

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Debt and WorkTotal student loan debt exceeds $1 trillion; avg. debt per 2014

grad = $29,800 (Federal Reserve)

Unemployment rate for recent college grads = 8.8%

(Economic Policy Research Institute)

Between 2000 and 2013, wages for college grads decreased

8.5% or ~$3,200 (EPRI)

1 in 2 American adults aren’t saving for retirement (LIMRA)

39% of millennials expect to work indefinitely & won’t have

enough money to retire (Financial Times)

Generation Y Places High Value OnConnection to othersDiversityLiving first, working secondTime with friendsCivic activities Taking care of the environment Authenticity Quality Access to informationOngoing learning Career development Freedom to travel

35Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/2008

Expectation of Privacy

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Helicopter Parenting

37

Cell Phone TechnologyThey all have cell phones and expect to be in contact 24/7.

Not a phone – a lifestyle management tool

Staying “connected” is essential.

Communication is a safety issue for parents.

Communication has become casual for students (IM, email and cell phones.

What Millennials Want

Ability to work whenever and wherever they want.

Variation on the job

Continual feedback from supervisors

Opportunities to learn, retool and reinvent themselves

Challenge, new problems to solve

To be in charge of their lives and future

Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the

Generational Divide and Increasing Profits, 2007

What They Are Not Interested In

Time-honored traditions

Doing things the way they have always been done

Paying their dues

How their managers got to where they are (rank)

A work ethic that requires a 10 hour day

Unquestioning loyalty to a companyMarston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the Generational Divide and

Increasing Profits, 2007

Milleniam’s Take-Aways

Messages that MotivateVeterans◦ Your experience is respected here

◦ What has and hasn’t worked in the past is relevant

◦ Perseverance is valued

Boomers◦ You are important to our success

◦ Your contribution is unique and important

◦ We need you

Messages that MotivateGen Xers◦ Do it your way◦ There aren’t a lot of rules here◦ We’re not very corporate

Millennials◦ You will work with other bright, creative people◦ You can help turn this company around◦ You can be a hero here◦ We value independent workers◦ Your boss will help you succeed

Generation Z/Silents

Generation Z/SilentsStarts mid-2000’s until about 2017-2020

Will be raised on technology, they will not be scared of anything, they will be open to new ideas.

They will be into truth and loyalty and they will not be not afraid to voice their opinion.

They will be flexible and open to change.

They will be fearless and fun.

They will be the ‘new’ hope for our own future.

Their great-grandparents belong mostly to the Silent Generation and the Baby boomers form the core of their grandparents.

Their parents are seen as being roughly evenly divided between Generation X and Generation Y.

http://www.generationzbaby.com/generation-z.html

Older Generations Make Assumptions

That younger generations will measure success just as we have.

Young worker must pay their dues and follow the same paths to success as previous generations.

The company ladder will remain intact.

Workers go where the jobs are.

Marston, Cam, Motivating the “What’s In It for Me” Workforce: Managing Across the

Generational Divide and Increasing Profits, 2007

One Final WordIn case you're worried about what's going to become of the younger generation, it's going to grow up and start worrying about the younger generation. (Roger Allen)

About Your Presenter

Randall Hallett

Board Member, NSFA

Long time fundraiser (CDO) and advocate for secondary educational fundraising

Consultant in Healthcare Philanthropy

CFRE, Ed.D. Candidate, JD, MBA, BS

randallhallett@yahoo.com

402.943.6097