While they don't hoard pennies like their Depression-era grandparents, today's young people will forever be affected by the Great Recession.
Entering the workforce during a down economy creates attitudes that could last up to 20 years, according to a recent study led by Yale economics professor Lisa Kahn.
This generation will be plagued by risk aversion, and the belief that hard work no longer guarantees success. Compound that with a fear of confrontation, and you've created a more passive workforce.
But Generation Y -- defined loosely as anyone born in the mid '70s to 90s -- also brings a lot to the table.
They're more risk averse
“Because they have a limited history, they are much more likely to change their behavior due to a single year’s performance in the markets than an older person, who might have several decades of experience,” says Stefan Nagel, an associate professor of finance at Stanford University's Graduate School of Business.
Low returns in the 1970s caused younger investors to be more risk averse even into the 1980s:
"They pulled their money out of the stock market at higher rates than older investors, who still had memories of better returns in the 1950s and 1960s and were therefore more confident that the market would rebound."
Because of this, they won't invest as much -- into the stock market, or any one job
In his study, Nagel says this risk aversion will create a "vicious cycle" of investors being too skittish to reinvest their money: "Those who experienced high inflation were less likely to invest assets in bonds, preferring inflation-proof cash-like investments."
This attitude also extends to how workers view jobs: young people are less likely to feel a sense a loyalty to any one employer.
They question traditional hierarchies
When making a business deal with a member from this generation, it's essential that all parties involved act as if they were of similar ranking. In other words, if you expect to be treated differently because you are of a higher rank, think again.
Younger workers are more willing to challenge managers and traditional hierarchies, so communicating on a more casual tone between equal ranks will make the meeting run smoother.
See the rest of the story at Business Insider
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