Today at TILE we talked about the desire of young adults to learn about financial services, the frustration parents feel talking about wealth, and the need for next generation financial services. When do we stop focusing on literacy and start developing a financial identity? Why aren’t there financial tools that appeal to Gen Y? When will financial institutions begin to recognize there is a new generation of consumers – who have different expectations and different ways of communicating?
At TILE, “Next Generation Financial Services” is a vision inspired by young people and delivered through tools they can relate to. Generation Y is out to change the world. They’ve already altered our political process (i.e. the 2008 Presidential election), the values we cherish (i.e. environment first!), and how we communicate (i.e. texting and instant messages). This is all before they have control of the $1 trillion+ they stand to inherit in the next 10 to 15 years!
Our research has shown that young people want to learn, but ”old people” and “old firms” are speaking the wrong language. Think about it, there are a lot more grandparents learning to text than young kids writing hand written letters. This is the first time the onus is on the older generation – financial institutions need to learn to text too!
Traditional educators focus on literacy – open a book, listen to a lecture, or memorize definitions. TILE is about moving from literacy to identity – from education to action! If we want young adults to be responsible consumers of financial services in the future, we need to stop telling them what we want them to know and start giving them the tools to connect what they care about to their financial life. For example, how do spending habits relate to the market? How can my collective giving impact the market or other people?
What does this mean for the TILE community? There is finally a place to develop a financial identity and bring together all the pieces of our financial life – Spending, Growing, and Giving. While parents or grandparents fund the accounts, TILE members set their own preferences, privacy level, budgets, and donation amounts. The TILE Library is filled with engaging content and answers to all sorts of questions and the Learn to Grow module will jump-start those long overdue conversations with financial advisors. Parents can feel comfortable knowing that TILE is a safe place and advisors get to build a positive brand image. Whether every day, a few times a week, or just when you feel like it, there is now a place to get lost in learning and begin to build a financial identity. At the end of day, TILE members can not only become better investors, but maybe tomorrow’s financial experts!
- Amy