2 Shar­ing and Econ­omy Fi­nances

Young peo­ple save by shar­ing, dream of own­ing real es­tate and are en­dur­ing fi­nan­cial hard­ship.

Bulletin - - Credit Suisse Youth Barometer -

The shar­ing econ­omy is one fo­cal point of the 2018 Credit Suisse Youth Barom­e­ter. Among re­spon­dents, this eco­nomic model is quite pop­u­lar, earn­ing a grade of be­tween 6.7 and 7.1 out of 10. What drives its pop­u­lar­ity → Fig­ure 2.1? One driver of the shar­ing econ­omy could be the strained fi­nan­cial sit­u­a­tion of young peo­ple to­day (see next page). The as­ser­tions “Shar­ing saves money” and “By shar­ing, I can buy things that I would not have oth­er­wise been able to af­ford” garner strong agree­ment – this fun­da­men­tal con­cept has al­ready been seen in the shared apart­ments of the ’70s, and now tech­nol­ogy makes it fea­si­ble for a wide va­ri­ety of goods to be eas­ily and safely shared with strangers – things like bi­cy­cles, va­ca­tion rentals of all sizes, jobs, loans (crowd­fund­ing) and cars.

“Mil­len­ni­als have grown up in close con­tact with tech­nol­ogy, and the idea of ‘ shared con­tent’ is fa­mil­iar to them,” says Giulia Ranzini, an ex­pert on youth and the shar­ing econ­omy at the Free Univer­sity of Am­s­ter­dam → p. 70. “So they take a fun­da­men­tally dif­fer­ent ap­proach to own­er­ship.” She adds that the idea of own­ing dig­i­tal mu­sic, for ex­am­ple, seems ab­surd to a 19-year-old.

In­ter­est­ingly, though, the con­cept of shar­ing has by no means re­placed own­er­ship as a sta­tus sym­bol. The ma­jor­ity of young peo­ple still want to keep valu­able things for them­selves → Fig­ure p. 70. Shar­ing ul­ti­mately

of­fers more op­tions. But the de­sire to ac­cu­mu­late wealth is still very im­por­tant to this gen­er­a­tion.

A clas­sic el­e­ment of the Youth Barom­e­ter is to ask sur­vey par­tic­i­pants what they would do if given a large amount of money → Fig­ure 2.2. Fit­ting the im­age of the new, earnest youth of to­day, re­spon­dents in all coun­tries would de­posit around one quar­ter of the money into a sav­ings ac­count, with the most in Switzer­land (27 per­cent). An­other 10 per­cent of the money would be saved for a rainy day and yet an­other 10 per­cent for buy­ing a house. In ad­di­tion to smaller amounts spent on va­ca­tions or cars than in years past, this is the first year that young peo­ple would in­vest part of the money in cryp­tocur­ren­cies.

Fur­ther state­ments re­gard­ing fi­nan­cial mat­ters serve to fur­ther so­lid­ify the im­age of a con­sci­en­tious gen­er­a­tion → Fig­ure 2.3. The vast ma­jor­ity want to own a home: 84 per­cent in Switzer­land, 90 per­cent in the US, 94 per­cent in Brazil and 92 per­cent in Sin­ga­pore. Eq­ui­ties seem to be a fa­vored in­vest­ment ve­hi­cle in or­der to reach this goal. Around a quar­ter of those sur­veyed also viewed char­i­ta­ble do­na­tions as a high pri­or­ity.

In a way, one might get the im­pres­sion that the young peo­ple in this sur­vey were liv­ing a sort of “youth without child­hood.” The sit­u­a­tion on the la­bor mar­ket is rough

→ Chap­ter 1, and, when it comes to money mat­ters, prac­ti­cal­ity and scarcity rule the day. Around half of the young peo­ple with fi­nan­cial obli­ga­tions such as mort­gages feel that these are a bur­den (59 per­cent in the US, 46 per­cent in Brazil and 48 per­cent in Sin­ga­pore). In Switzer­land, that group ac­counts for 39 per­cent.

Newspapers in English

Newspapers from Switzerland

© PressReader. All rights reserved.