Last week, I saw this tweet from MoneySense:
Generation Y is outspending older Canadians on luxury items. Fancy that. This & other stories in the roundup:moneysense.ca/?p=29906
— MoneySense(@MoneySenseMag) June 20, 2012
That led me to this weekly round-up, which finally led me to this article from the online version of the magazine Canadian Business.
You’re probably aware that GenY is mired in debt, lacks employment, and is excessively educated. Despite those depressing facts, GenY’s spending on luxury goods grew more than any other generational cohort.
Reading this, I felt a twinge of shame. As you may know, I’m vintage ’87.
I’m starting to feel like GenY’s failure is a foregone conclusion. And it’s for the most pathetic reasons of all: laziness, apathy, and straight-up hedonism.
A lot of smart writers like Rob Carrick have sympathy for our generation. It’s kind of them. We do face legitimate problems, but that only merits a certain amount of leeway.
Our grandparents had some problems, too. They beat Hitler and put men on the moon.
What have we, the Echo Boomers, done? After 9/11, everybody my age started hating George W. Bush. Then they all got baked and just kinda rode longboards. Hipsters emerged. We’re post-modernism’s cruel parody of the Greatest Generation.
To my fellow Gen-Yers, and specifically the Pop’n'Chips set: seriously, suck it up. I am sick of you. Your failure is not for lack of good advice (except about the housing bubble — I’ll give you a pass if you foolishly bought a condo in Toronto).
Nevertheless, the late GenYs are only in highschool now, so there’s still a chance. I’m going to lay it out one last time. Here’s a super easy three step guide on how to not be an indebted, over-educated, self-indulgent, unemployed loser (i.e. the typical GenY kid in his 20s).
Step 1: Don’t Get a Useless Degree
If you get a B.A. in Anthropological Post-Modern Women’s Cultural Studies, you are the author of two things:
- A ton of subjective, navel-gazing, terrible essays; and
- Your own misery.
You need to be the solution to your own problem by getting a credential that’s in demand. You don’t need to be an economist to choose the correct credential.
If you get a Latin degree, I wish you all the best. Maybe you’ll become a successful lawyer. Most likely, you won’t. Sorry for chuckling when I see you at an Occupy Wall Street rally.
For the Kids
If you’re a 17- or 18-year old kid who is about to graduate highschool, here’s all you need to learn from this article:
- Get a useful credential. This could be a trade certificate. No, not Early Childhood Education or kitchen chef. I’m talking about getting your electrician or pipefitting papers. Alternately, you could get a degree – but make sure it’s in Engineering or an applied science.
- Go to the oil patch.
Step 2: Get a Job
Proper alignment of labour supply and demand is essential to a healthy economy. The truth: there is demand for labour in Canada. The problem for GenY grads? The demand isn’t in Ontario (nor is it demand for hair stylists).
If you’ve followed Step One (Don’t Get a Useless Degree), and you’re willing to move, you’ll get a job. On the other hand, if you can’t handle doing TWO things right, then you’re lazy or selfish or both.
For the Unemployed B.Ed.s
If I hear one more B.Ed. living in Southern Ontario moan about how they can’t find work, I’m going to lose it. Teaching is a great job – it pays extremely well and only takes an extra year of school (if you’ve already got a BA in Philosophy). That makes it very attractive to a large subset of graduates – the ones who have no prospects in the labour market and who can’t create their own jobs. As a result, no, you will not find a job in your hometown. At best, you’ll run on the supply teaching treadmill for years. What’s the solution?
Move. Way up north. Northern Ontario, perhaps. Nunavut, even. Wherever there’s a job. There are a TON of jobs for teachers, but not in Oshawa (if you think that’s far north or the middle of nowhere, you’re an insufferable Torontonian). Northern jobs pay well. They must pay well, or else they wouldn’t attract enough workers (Canada’s north is a harsh environment).
Oh, you’re not actually up for a challenge, huh?? You just like saying it on your resume? Well, you should probably stop lying to people about how you like to “challenge” yourself when really you just like mountain biking. You want to stay in Guelph with the BF and BFFs? Don’t be hating when I laugh at your story on ‘Til Debt Do Us Part.
A job isn’t for fulfillment. It’s for money. Otherwise most of us would be volunteering for a foodbank or travelling Europe all the time. Oh right, Gen Y does the latter constantly. You live in an absolutely magical time and place – an abundance of material wealth, lots of free time to pursue your passions, and incredible technology. Even still, menial jobs and hard work are below you, GenY. No wonder you’re unemployed.
Do you think your Great Grandparents toiled on farms to find themselves? Do you think your Grandpas slung metal in a factory for fulfillment?
If this truth is some kind of sacrilege to your Theory Y-enlightened PC sensibilities, then it proves one thing: guidance counsellors have successfully rendered impotent our entire generation. Your “Employment Development Officer” isn’t working for “recognition” and “satisfaction”. He or she works for money. Think about it.
Step 3: Don’t Spend Like an Idiot
This one’s self-explanatory. The Baby Boomers had it easy on Steps #1 and #2, so they succeeded. But, unlike their parents, the Boomers – as a whole – flunked on #3. There’s a reason that most of their net worth is tied up in houses and they haven’t generated appreciable assets: they spent too damn much money. They may have a workplace pension so they won’t have to eat catfood. You, on the other hand, probably won’t enjoy Defined Benefit golden handcuffs.
The answer is simple: save money. Below are six rules. They don’t explain how to save money in every specific situation. That would take a book (are there any publishers out there who want to take a chance on “How to Not Be Money-Stupid” by Joe Wood??). In lieu of the book, here are the rules:
Rule #1: spend less than you make.
Rule #2: pay yourself first.
Rule #3: maximize the surplus of your revenue over expenses.
—Rule #3 (a): Structure your life intelligently to avoid high fixed costs.
—Rule #3 (b): budget carefully to avoid high variable costs.
Rule #4: maintain a modest lifestyle (even a student poverty-esque lifestyle, if necessary).
Rule #5: pay with cash or have the cash to pay it off.
Rule #6: maximize your tax-advantaged accounts every year. It never gets easier, only harder, so start now.
Conspicuous consumption is cool today. Your iPhone will be pretty lame when you’re in debt at age 50.
And that’s the 3-Step program. You didn’t even need to buy my book.
Whoa, way harsh Tai! [Maybe that's more of a Gen X reference, but I've got few years on ya, so bear with your elder here.]
… but good points. I wish high schools and even universities spent some time properly counseling their students on the first point, though it’s probably not in their interest to do so. And I don’t even mean telling students about “what you can do with a xyz degree”, which is often meaningless and hypothetical. The important questions are more pragmatic, in my opinion. Start with “What kind of lifestyle do you want?” Ultimately, you need a degree that will get you the job that will align with your lifestyle expectations (not just career ones), otherwise you may end up unhappy AND poor. Of course, that won’t help if your lifestyle expectations are out of whack with your realistic job prospects, or self-contradictory; a job that pays a mint for not a lot of work (and lots of vacation time) probably doesn’t exist.
And “amen” to your point that a job isn’t for fulfillment (or fun). I am envious of people whose jobs are their life’s passion, but (luckily for my mental health, LOL!) they tend to be rare. I like my job, don’t get me wrong – at least, most days. But the most important thing about it is that it gives me the wherewithal (and time) to do the things I really enjoy in life, not to mention support my family. I’m not sure it’s fair to expect any more than that from a job. I remember one prize specimen on TDDUP who, being unemployed, was discussing his career aspirations with a counselor and expressed his inability to work some particular job because it wouldn’t be fulfilling. He was in debt, with little to no job experience, and no specialized degree – gah! But perhaps he was expecting to land a job with six weeks’ vacation, and a six figure income straight out of school. Wouldn’t be the first time, I’m sure.
Exactly! I love my current job (well x2 if you consider that I’m now on parental leave and taking care of my daughter). But starting out, I would have taken pretty much anything where the experience would improve my career prospects (and if I hadn’t been hired by the province before graduation, I would have broadened my criteria even further). I liked my first positions, but they paid much less (and offered next to no benefits). On this basis, some people wouldn’t stick it out. I used it as a chance to figure out how the organization worked, how to get better jobs and (most importantly) a ton about government procurement. The only reason I was competent enough to move up so quickly was because I seized the opportunity, and didn’t care whether it was “perfect” enough or my “passion” or “fulfilling”.
I think that a job is like music – you learn to like things over time. Further, a person might never love their current position, but it’s experience they can leverage into future career moves and, most importantly, they’re taking care of business.
I find this attitude all too common among students that come into the employment centre that I work. I’ve lost count now as to how many Cultural Studies majors have waltzed in looking for help landing that “good” job that’s “relevant” to their degree (outside of universities, what jobs are even relevant to Cultural Studies?). But being a History major, I should stop ranting before I start sounding like a hypocrite for I will probably be in a similar situation if I don’t join the masses going into graduate programs.
If I had one major tip for you it’d be this: don’t become a perpetual student. Because of the sheer numbers, Liberal Arts academia is becoming brutally cut throat. It’s a deadend, where you’ll arrive at debt and age 30 without having accomplished much of anything.
Great article Joe, my thoughts exactly.
Thanks, Leo! Hope everything’s good.
This was an excellent article! Made me burst out laughing in several places. I think it should be reading material for all gens, not just Y. I’d like to print this article out and staple it to the foreheads of a few people I know.
We have our fair share of lame Xers as well. (What age group do you think the architects putting up all these useless condos are?) But at least we grew up with the firmly entrenched ethos: “Work is probably going to suck, so do whatever you can. If it doesn’t suck, you’re sort of lucky ’cause that’s just not normal.”
That’s a great point on GenX. As Homer Simpson said to the Smashing Pumpkins in 1996, “Thanks to your gloomy, depressing music, my children no longer hope for the future I can not afford to give them.” Grunge was more frugal than the hipster movement.
A job you love is a luxury. It’s rare to start out in one. It requires hard work — but then again, that’s usually a foreign concept to the whiners we’re discussing.
Obviously you’re looking for a reaction, but the only one I’m going to provide is in response to the “useful” degree comment. Just because you have a degree in one subject doesn’t mean you have to work in that field – the majority of jobs don’t require special training.
As a History major I learned to write properly, analyze, and research. During my co-ops I worked for the government, a nuclear power plant, tech companies, etc. and gained a wealth of skills that helped gain employment later on.
Obviously you’re a hard worker. I’m glad you’ve succeeded in life. That’s fantastic and I wish every individual who reads this blog the best.
If I chose to NOT vaccinate my kids, statistically they’re very UNlikely to get polio. But it’d make me a stupid parent if I failed to vaccinate my kids. With degrees and credentials, you can look at employment statistics and income statistics; these are on my argument’s side. You only presented an anecdote.
The realities of the job market are that the average history grad will NOT get a good-paying job anytime soon after grad. Having a degree or credential that is applicable to an IN-demand field of work is, by far, the MUCH better bet when you’re placing your chips on the roulette board (usually some time in Grade 12).
I can’t, in good conscience, recommend that people shoot their careers in the foot by getting a degree/credential that isn’t in demand. I do, however, recommend co-op programs. TBH, I’ve never heard of a history degree co-op program; I’d love to learn more. Co-op is one of the reasons the trades are awesome — you can make $12 to $25 an hour while you get educated (not just when you get to college, but even before that in highschool!)
University of Waterloo offers many, many co-op programs. They’re the reason I attended the school. It’s a great and useful experience having to juggle exams and job interviews at the same time. Plus it gives that real world experience that all new grads need.
A good co-op program is worth its weight in gold. Highly recommend them — except for loosey goosey varieties where it’s heavily self-directed. A reputable co-op program will place you with a relevant employer and you will get paid.
And yes, I always look for a reaction to my writing
Otherwise my blog would be pretty boring and I doubt I’d get many hits. Thanks for commenting!
Wow, hey, that’s a really satisfying rant. Makes me think of Rick Mercer speed walking down those alleyways, sounding off to the camera.
You’re right, all these points are pretty much common sense. Not sure how this works over time, seems those soft arts degrees have always attracted a subset of the population.
I followed the plan you laid out for finding gainful employment. I was in a technical field (geology), and was willing to work in the north. I never made huge money doing it, but got a fair wage and studied investing on my own. I was able to leave the workforce at the young age of 30 and focus on my investments. Go north, gen X. It was almost music to my ears to hear my co-workers talk about how they hated the small northern town I loved working in. That’s the sound of job security.
lol thanks, Rick Mercer’s streeters are a highlight of Canadian television.
Good for you. A lot of communities are extremely challenging to say the least (and travelling for work is rarely a cake walk, anyway). As you note, the jobs aren’t in short supply up there — the willpower down here is what’s lacking.
I at one point was taking both ancient greek and latin. I was good at it and I liked it. One day in class however I asked my professor what I could do with it after university. He said well you have two options. You can take over my job when I retire or you can impress your friends. In other words not very useful at all.
Being a scholar is ok but not everyone wants to teach and if they all did there wouldn’t be enough jobs available anyway. Too many degrees seem uselless in real life.
Scholarly research and academia are an integral part of society and they’re critical to human development. That doesn’t mean it can employ everybody, nor does it mean that everybody’s cut out for it. Further, it’s expanded too much into post-modernist tomfoolery like Cultural Studies (I don’t want to get into the Sokal Affair, but if anybody wants to debate the merits of Cultural Studies then I’ll throw down). If you were super rich I’d say you should study classics because you enjoy them; perhaps this is a degree you could pursue in retirement?
Thank you, thank you, thank you! For many years, I’ve ignored the derision of my peers, who grumbled over my good luck and who now, seem to be almost angry that I have succeeded at retiring while in my early 50s. They completely fail to grasp that my “good luck” was my own doing, or more significantly, that their lack of luck is the result of their poor lifestyle choices. I consistently spent significantly less than I made, invested wisely, and positioned myself for jobs that furthered my goal of independent wealth rather than personal fulfillment. As my parents put it, a job isn’t about personal fulfillment, a job is to get. That said, I find the peace of mind that comes from financial security and the empowerment of considering a job optional now to be personally fulfilling indeed, much more so than from any SUV, home upgrade, or iphone my “unlucky” acquintenances are enjoying.
And to those who now want to clawback government pensions from people like me, who sacrificed much in their youth to be able to get to a position of affluence, all I have to say is “sour grapes”.
You’re welcome x 3. Good for you, congrats on your retirement! Based on my pension, I plan to be able to retire at 56. Even without a pension, I plan to have sufficient assets to retire at around the same time.
Defined benefit pension plans are expensive, but usually half (sometimes more or less) of the costs are born directly by the employees, and the other half is a benefit that a potential employee should consider as part of his or her whole compensation package (often something is given up in exchange for it; such pensioned positions often can’t possibly offer an opportunity for significant bonuses and they have a pay scale that doesn’t compete with similar non-pensioned positions). The grass is always greener, right?
My sentiments exactly.
I see some crazy stuff here at work. Young guys in their twenties buying $40K+ pick-ups, financed of course. It will go nice with the motorcycle rocket they have as well. Lulled into a false sense of security by living with the parents still.
Or other guys in their twenties who don’t want to wait to get through law school and decide to be an expendable contractor and buy a $40K+ Camaro!
I’m forty and I’ve only ever bought two cars in my life for $20K each. What is with these kids?
I knew a co-worker who was earning 70k+ a year. He owned 2 luxury cars and was looking at a third. He had no debt, but owned no assets (besides his supposedly valuable cars). Just a recipe for absolute disaster later in life. He could have paid off a house by now. Maybe he’d prefer to live in a Lexus if he got laid off?
I think it’s important for kids to move out from their parents’ houses. Not only does it massively improve one’s relationship with his/her parents, it forces a person into real life – priorities, bills; just a sense of responsibility. Living with the parents can easily result in a case of serious arrested development (AD is also my favourite comedy series of all time).
HahahahahahahahahahahahHahahahahahahah
Sometimes when you start out doing something you love, it can ruin your love for it.
So following your passion is not always the best option either.
Absolutely. Doing something you love is one thing. Getting paid for what you love can change the equation.
Loved this article! Great points man, glad I clicked over from Moneysense. I write similar stuff often. We take entitlement to a while different level eh? I am one of the B. Ed graduates that moved to a fairly isolated place to get a job, and I am so happy I did. I never intended to do anything else. Yet when I talk to several of the complainers from my grad class who are working at Starbucks and Chapters, they refuse to come join me in my school division even if I were to put in a good word for them. It’s no different than people who believe that EI is their god-given right for life, and are incensed by the whole idea that the economy could force them to move to a place where there is a demand for workers. The complete idiocy and widespread arrogance of that view completely astounds me. Thanks for the rant fellow clear-sighted Gen Y’er!
You’re welcome and thanks for the visit/comment. I stop in on Y&T every once in a while, I like what you’ve done with the place.
Yeah — I could see if there weren’t ANY jobs ANYWHERE, but there ARE, and they’re just too lazy. I think a more efficient EI program would provide significant financial support to help people move. Moving is very expensive, so I can see an out-of-work electrician with a young family saying “I really can’t afford to move from Ontario to Alberta”. If he got $10,000 in reimbursed gas, moving fees, flights – whatever – then suddenly it’d be more tenable to get off EI. The moving deduction can be a huge help — a year after the fact. Clearly we need to shift the help to *today*.
You’re welcome and thanks for the visit/comment. I stop in on Y&T every once in a while, I like what you’ve done with the place.
Yeah — I could see if there weren’t ANY jobs ANYWHERE, but there ARE, and they’re just too lazy. I think a more efficient EI program would provide significant financial support to help people move. Moving is very expensive, so I can see an out-of-work electrician with a young family saying “I really can’t afford to move from Ontario to Alberta”. If he got $10,000 in reimbursed gas, moving fees, flights – whatever – then suddenly it’d be more tenable to get off EI. The moving deduction can be a huge help — a year after the fact. Clearly we need to shift the help to *today*.
And most importantly…grow up and stop suckling on the teats of your parent (s) Sorry for all the mistakes we made in your upbringing but even a life sentence is only 25 years! Stop having temper tantrums when we say no. Chip in for gas when we drive your sorry —– around. Don’t ask to buy the car for ten bucks. Better yet -take the bus. Stop thinking we are still suppose to pay for your meals when we go to a restaurant. Sure would be nice if you treated us once in awhile. Stop thinking you are entitled to live rent free in OUR HOMES or rental properties. You actually believe you’re a joy to have around…pleez…Stop thinking our vacation homes are YOUR vacation homes. What’s ours is ours, not what’s mine is mine and whats yours in mine. Get a clue, what’s your frequency Kenneth? Poop and scoop kiddies. Clean-up your own messes. Deal with your own crap. Believe it or not you pompous little Prince and Princesses we have our own issues to deal with and lives of our own. And speaking of our lives….keep your snotty little noses out of them., Think we don’t know that you’re just worried we may be spending all the money you hope to inherit. Hee Hee…we are!. Surprise Surprise It’s OURS!!! Stop trying to pad your pockets at our expense. You have the rest of your life to make money, we are heading towards retirement. Guess what, when you grow up you are supposed to ease our burden and help us out! So Gen Y when do you plan on growing up? I mean really growing up. And that has nothing to do with your job,degree,bank account or how smart you may think you are….snicker,snort. We wanna cut the cord baby. We want adult relationships. You know ones that are mutually respectful and where there is give and take. Sure would be nice to count on you once in awhile. Stop your stomping,sobbing,sniffing,swearing,and put your big boy/girl panties on. Our job as parents is to give you roots and wings. You got the roots ….time to make like a bird and flock off.
……..Rant……..Parents of Generation Y…….