Yes and no. Young people still need to save, invest, and plan. But on many objective measures, things are not going well for gen Y. The facts just keep coming: Average tuition is up over 250 percent since 1976, revolving debt is up 24 percent in the last five years, and 2004 male graduates earned less after inflation than they did 30 years ago. Half of recent college grads have failed to pay some of their debt. And there is a staggering array of places to spend our money, including online and on luxury goods that simply didn't exist 20 years ago.
There aren't any secrets to personal finance. People have been saying similar things for 50 years: Know where your money is going, save more, invest your money, and grow it. But instead of seeming like lectures, personal finance can actually be relevant and engaging to young people. When I am teaching on the subject I try to tell stories about dumb things I've done with money, simple steps to save and invest, and how to think about money (like the difference between being cheap and frugal).
In the end young people today are facing the same issue their parents faced, desires are limitless and money is scarce. What is most important is that young people today learn to talk about money. Learn how to gather more information in order to make smarter decisions and learn to save more earlier than previous generations because a social safety net will not likely be available in 20 years.
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