money

JWT's February AnxietyIndex quantitative study examined attitudes around current events with a sample of both 18-29 year olds as well as a small sample of teens.

Young people are certainly feeling the effects of the recession, 77% are feeling nervous or anxious as a result of the economic conditions. Its nearly even with the overall 18 and over sample.

Teens, however, are a little less anxious but still 64% are. The difficult stat is the 46% of parents who don't think their teens are worried about the economic conditions. Unfortunatly, 71% of teens surveyed are more likely to have increased anxiety as a result of talking to their parents (the ones who don't think their kids are worried). Sixty percent draw anxiety from conversations with teachers about the economy.

When looking at the issues that concern most Americans and comparing it to youth, the economy is overwhelmingly the number one issue with cost of living following behind, and health care in a near third place. Where young people are even with the overall electorate is with their concerns about job security and our current military hostilities. Interestingly, few Americans have fears about the political leadership which probably accounts for the high job approval ratings for the President.

Closer examination about attitudes and anxieties that young people have - its interesting to see that 60% of young people feel like they are being dealt with unfairly during this recession. This makes some of the work that 80 Million Strong is doing even more important. The 80M project, if you haven't heard, is working to develop support among young people to lobby Congress and the White House to look at the economic conditions and job market from the youth perspective as well as the middle aged perspective - because youth unemployment is actually greater than overall unemployment. This, of course, while we shoulder obscene debt from college or predatory credit card companies.

Further, only 34% say their friends have interesting "entrepreneurial" jobs to make money, and 70% say most of the people their age are worried about the recession.

Check this one out. Due to the difficulties we're facing more teens are being forced to think about things normally left up to adults. This can have an interesting effect on youth as they grow as well. Ideally, they'll be more likely to be aware of their own financial situation and more aware of predatory credit card companies. But those choosing whether or not to attend college might put off such a huge purchase because they fear for their own financial stability.

Most encouraging is that while the top three fears of youth have to do with jobs after graduation, giving up things because of financial hardships, and concerns about their parents, the forth major concern is that the condition of the planet being left to their generation will be less than they feel they deserve. On the chart of concerns, this is actually the only ideological concern for teens. The others consisted of typical ego issues and economic hardship questions.

I think this gives some interesting room for Congress and the White House to work in the upcoming years. Not only are 18-29 year olds deeply concerned about the environment, but up and coming voters very seriously care about the condition of the planet. I think this might even put to bed any concerns about our environmental progress over the next several years. As Global Warming Deniers die off they'll be quickly replaced with strong environmentalists.

Finally, when looking at what things both young people and teens are willing to give up in tough economic times an overwhelming number said they couldn't give up their internet connection or cell phones, because they use it for social connectivity. Ninety percent of teens said they had to have an internet connection, and only 11% of 18-29 year olds said they'd be willing to give it up. Seventy-three percent of teens wouldn't give up their phones, and 89% of 18-29 year olds wouldn't. This also gives us a pretty strong picture of the best way to communicate with young people probably won't change for a long time. Online and cell phones were a major connection from campaigns and orgs this election, they'll only become more powerful with attitudes like this.

JWT is coming at this from a product and marketing perspective so ideas about anxiety among groups are important to them. Here's why they say things like fear is important:

"Fear is rising fast amid a worldwide recession that has corporations slashing jobs around the globe and many consumers unsure about making the next credit card or mortgage payment. Add a 24-7 media environment in which bad news spreads fast and repeats endlessly, and you have a highly anxious world—and tens of millions of consumers seeking guidance and assurance.

That’s why we believe anxiety matters. Anxious consumers look for brands that can give them a sense of control over their lives, whether that means staying within their budget at the supermarket or finding cheap alternatives to going out. Navigating consumer anxieties is not about exploiting fear. It’s about finding better ways to connect with consumers looking for trust, credibility and answers."

Products are no different than candidates and politicians. Those who can give comfort and trust in a time of crisis and help create a sense of control will be the most successful.

cross posted on College Dems of NY blog: http://www.collegedemsny.com/blog

A loan package of as much as $200 billion could be going to private loan companies of student loans, according to the Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2008/11/27/AR2008112702570.html?wpisrc=newsletter

Student advocacy are alarmed that Treasury Secretary Hank Paulson would approve of such a move without better consideration as to how the money would benefit students in the long run.

According to WaPo:

"A bailout for the providers of usurious private student loans will not solve the college affordability crisis caused by the failing economy, and would actually be detrimental to many students and consumers," nine advocacy groups wrote in a letter sent last week to Treasury secretary Henry M. Paulson Jr., after he signaled that the department was developing the program. "However, if you continue to pursue any form of rescue for private student loans, it would be unconscionable to do so without also providing better consumer protections."

The biggest concern is that the taxpayer money to student loan companies won't decrease the loan rates. Furthermore, the money would be better spent by the government taking on more responsibility in issuing Federal Direct Loans.

Currently the federal government issues the following loans:

1. Federal Direct Subsidized Loan: 6% interest rate (no interest accumulates while student is in school)
2. Federal Direct Unsubsidized Loan: 6.8% interest rate (payment not due until student finishes school but interest accrues)
3. Federal Direct Parent Loan: 7.8% interest rate (parents pay loan)

Often loans from private insurers, Sallie Mae being the biggest, is that interest rates are twice the amount, between 11-13%.

More from WaPo:

The student and consumer advocacy groups who wrote Paulson say that far too many students unnecessarily take on private student loans. One out of five undergraduate private student loan borrowers did not first take out federal loans, according to a study by the American Council on Education, which represents college and university presidents. Experts and government officials say students should always exhaust federal student loans before they turn to private ones.

The estimated 8 percent of undergraduates who take out private loans often are swayed by misleading and deceptive advertising, then saddled with interest rates two or three times as high as federal loans, according to the Nov. 19 letter to Paulson, also signed by the U.S. Public Interest Research Groups, U.S. Student Association, National Consumer Law Center and the Project on Student Debt.

We can only hope that Congress will take a better look at how this can better student aid. Decisions about the bailout money have yet to be finalized.