In these pages, we've discussed the psychological aspect of deflation, which can be summarized as an increasingly conservative mindset among consumers, producers, borrowers and lenders.
Well, it turns out that "Generation Z," those born between 1996 and 2010, have become known as tightfisted.
You see, the Great Recession hit just as the oldest of that generation were seeking jobs and assuming some financial responsibility. Plus, they saw the financial struggles of their relatives and neighbors.
Apparently, their frugal ways have remained intact, even years into an economic recovery.
Read this excerpt from an April 25 Bloomberg article:
The kids of Generation Z are about to become the planet's biggest consumer spending force. That portends many opportunities in the globe's two largest economies, the U.S. and China. But retailers and brands in many developed nations with less robust economies aren't cheering. That's because their Gen Z youth have grown up in the shadow of financial crises and economic recessions, leaving them indelibly marked by frugality.
Surveys show that unlike millennials, many members of Generation Z are cautious about excessive consumption. After seeing their parents walloped by the 2008 financial crisis, they're attracted to thrift stores, sustainable brands, and saving for a rainy day -- even when they have steady jobs and rising wages. That's particularly true in Europe and Japan, where growth has failed to bounce back as it has in the U.S. and China. Those Gen Zers, born in the mid-1990s or later, are part of a generation that's entering the workforce with a far more cautious approach to spending than their predecessors.
"They've seen so much uncertainty that it's their normal, and [it] has made them much more realistic and practical about spending and saving," says Jason Dorsey, president of the Center for Generational Kinetics, a consulting firm. "So they created their own version of what spending should be according to the circumstances that existed when their spending habits were formed."
You can read the entire article by following the link below: