Gen-X Files
By William L. Willard, CLU

Code of Generation X:

There's no free lunch; if I want something I've got to
go after it myself. And if I work hard enough, I'll get it.

"Generation X" are the 40 million or so people born between 1965 and 1976. Often referred to as "Gen-Xers" --"Xers" for short-- these "twenty and thirty somethings" are children of the Baby Boomers.

But don't mistake Gen-Xers for Boomers. Generation X detests labels--including the "Gen-X" tag it’s been stuck with--and has no illusions about the future. Boomers seem to think they're entitled to Social Security, to their homes appreciating 400 percent and two pensions...because that's what happened to their parents. At the same time, Gen-Xers are not just younger Yuppies. While they work hard, they don't see striving for financial success as an end in itself. But don't mistake Gen-Xers for Boomers. Generation X detests labels--including the "Gen-X" tag it’s been stuck with--and has no illusions about the future. Boomers seem to think they're entitled to Social Security, to their homes appreciating 400 percent and two pensions...because that's what happened to their parents. At the same time, Gen-Xers are not just younger Yuppies. While they work hard, they don't see striving for financial success as an end in itself.

Gen-Xers are...

Less status-conscious than their parents, Gen-Xers are not into show; they want results. Many Xers no longer view college as the only way to prepare for vocations leading to rewarding careers. Sharp young people today, with or without college degrees, are becoming a significant economic and social force. Less status-conscious than their parents, Gen-Xers are not into show; they want results. Many Xers no longer view college as the only way to prepare for vocations leading to rewarding careers. Sharp young people today, with or without college degrees, are becoming a significant economic and social force. Less status-conscious than their parents, Gen-Xers are not into show; they want results. Many Xers no longer view college as the only way to prepare for vocations leading to rewarding careers. Sharp young people today, with or without college degrees, are becoming a significant economic and social force. Less status-conscious than their parents, Gen-Xers are not into show; they want results. Many Xers no longer view college as the only way to prepare for vocations leading to rewarding careers. Sharp young people today, with or without college degrees, are becoming a significant economic and social force.

Boldly putting their own stamp on business. Launching hi-tech and other types of companies at a record clip, Gen-Xers are less tied down by old notions of bureaucracy, and they're ready to try out their own management styles. Yet, in spite of that and the long hours many Xers put in, they view financial prosperity as but a by-product of a well-rounded life, not the main event. Boldly putting their own stamp on business. Launching hi-tech and other types of companies at a record clip, Gen-Xers are less tied down by old notions of bureaucracy, and they're ready to try out their own management styles. Yet, in spite of that and the long hours many Xers put in, they view financial prosperity as but a by-product of a well-rounded life, not the main event.

Already competing with Baby Boomers for jobs. Even now Gen-Xers and younger Boomers are knocking heads in the workplace as both groups try to assert themselves at the same time. "The images are so familiar, they’re cliches," observe Pamela Kruger and Stephen Danelian, in "Stop the Fight," in Fast Company, October, 1998. Already competing with Baby Boomers for jobs. Even now Gen-Xers and younger Boomers are knocking heads in the workplace as both groups try to assert themselves at the same time. "The images are so familiar, they’re cliches," observe Pamela Kruger and Stephen Danelian, in "Stop the Fight," in Fast Company, October, 1998.

"In this corner, the over-the-hill gang: senior executives who are utterly clueless about technology and dangerously out of touch with markets. In this corner, the kiddy corps: know-it-all Webheads who can’t run their own lives, let alone a company…It would be funny if it weren’t so damn counterproductive…Maybe it’s time for peace between the generations. Time for both sides to stop fighting with each other."

But don’t bet on it.

Risk-takers. Surveys find adversity, challenges, and the high risk of failure, far from discouraging Gen-Xers, have produced a tough, even ruthless edge. Resilience, the willingness to abandon a losing project and try again, is fundamental. Risk-takers. Surveys find adversity, challenges, and the high risk of failure, far from discouraging Gen-Xers, have produced a tough, even ruthless edge. Resilience, the willingness to abandon a losing project and try again, is fundamental.

Motivated to make a difference. Gen-Xers are attracted to careers that compel interest and provide the challenge of competition. Thirty years ago, Peter Drucker in The Effective Executive, wrote: "Doing the right thing is more important than doing things right." Judging by the wave of successful Whiz Kids with neither formal business education nor conventional management training, Drucker's message resonates. Motivated to make a difference. Gen-Xers are attracted to careers that compel interest and provide the challenge of competition. Thirty years ago, Peter Drucker in The Effective Executive, wrote: "Doing the right thing is more important than doing things right." Judging by the wave of successful Whiz Kids with neither formal business education nor conventional management training, Drucker's message resonates.

Interested in good personal relationships. Embracing racial and cultural diversity more genuinely and less self-consciously than any generation before them, Xers are also more likely to be tuned-in to personal relationships and fun. They're quicker to do business with someone they like and believe to be competent than with someone claiming to be an "expert." Interested in good personal relationships. Embracing racial and cultural diversity more genuinely and less self-consciously than any generation before them, Xers are also more likely to be tuned-in to personal relationships and fun. They're quicker to do business with someone they like and believe to be competent than with someone claiming to be an "expert." Interested in good personal relationships. Embracing racial and cultural diversity more genuinely and less self-consciously than any generation before them, Xers are also more likely to be tuned-in to personal relationships and fun. They're quicker to do business with someone they like and believe to be competent than with someone claiming to be an "expert." Interested in good personal relationships. Embracing racial and cultural diversity more genuinely and less self-consciously than any generation before them, Xers are also more likely to be tuned-in to personal relationships and fun. They're quicker to do business with someone they like and believe to be competent than with someone claiming to be an "expert."

Delaying marriage and starting families. Maybe because they've seen so many Boomers end up in divorce court, the so-called challenge of being single in a couples-oriented world no longer squares with the demographics. Delaying marriage and starting families. Maybe because they've seen so many Boomers end up in divorce court, the so-called challenge of being single in a couples-oriented world no longer squares with the demographics.

"Recreational sex carries little emotional commitment, but to this generation emotional commitment guarantees nothing either. A relationship often would no sooner reach the commitment stage than it would implode. It had run out of room to grow. Career-building came first… .[Gen-Xers] tend to be more tolerant of premarital sex than earlier generations, but much less tolerant of extramarital sex." (Source: The Wall Street Journal, 7/6/98)

More stable when they do marry, Xers are about nesting, making a house a home. Today's newlyweds are typically more mature, well-established and have higher incomes than in the past. Many are stable, ready-made two-income couples who have planned just when to start having children. Some already own homes and cars, and have acquired debt and are using it to their advantage. More stable when they do marry, Xers are about nesting, making a house a home. Today's newlyweds are typically more mature, well-established and have higher incomes than in the past. Many are stable, ready-made two-income couples who have planned just when to start having children. Some already own homes and cars, and have acquired debt and are using it to their advantage. More stable when they do marry, Xers are about nesting, making a house a home. Today's newlyweds are typically more mature, well-established and have higher incomes than in the past. Many are stable, ready-made two-income couples who have planned just when to start having children. Some already own homes and cars, and have acquired debt and are using it to their advantage. More stable when they do marry, Xers are about nesting, making a house a home. Today's newlyweds are typically more mature, well-established and have higher incomes than in the past. Many are stable, ready-made two-income couples who have planned just when to start having children. Some already own homes and cars, and have acquired debt and are using it to their advantage.

Rediscovering traditional family values. Appalled by the moral relativism and situational ethics of their parents' generation, Xers also don't buy the notion that the government-as-nanny-state knows best. Their message: It doesn't take a village, stupid, it takes parents! Rediscovering traditional family values. Appalled by the moral relativism and situational ethics of their parents' generation, Xers also don't buy the notion that the government-as-nanny-state knows best. Their message: It doesn't take a village, stupid, it takes parents! Rediscovering traditional family values. Appalled by the moral relativism and situational ethics of their parents' generation, Xers also don't buy the notion that the government-as-nanny-state knows best. Their message: It doesn't take a village, stupid, it takes parents! Rediscovering traditional family values. Appalled by the moral relativism and situational ethics of their parents' generation, Xers also don't buy the notion that the government-as-nanny-state knows best. Their message: It doesn't take a village, stupid, it takes parents!

In a word: Gen-Xers are unique. They don't do things or look at the world the way their parents did, and they have to be approached and worked with accordingly. In a word: Gen-Xers are unique. They don't do things or look at the world the way their parents did, and they have to be approached and worked with accordingly.

What This Means to You

Gen-Xers are better savers than their parents. In this, they are more like their grandparents, the Matures. A study by Alliance Capital Management revealed that 68 % of Gen-X parents were setting money aside for their children’s college education, compared to just 51% of Boomers between age 30 and 49. The average Gen-X Moms and Dads start putting money away for college when their kids are 2½, while most Boomers waited until theirs were 7. (Source: "Guess Who Didn’t Save for College," Pamela Kruger, New York Times, 3/8/98) In this, they are more like their grandparents, the Matures. A study by Alliance Capital Management revealed that 68 % of Gen-X parents were setting money aside for their children’s college education, compared to just 51% of Boomers between age 30 and 49. The average Gen-X Moms and Dads start putting money away for college when their kids are 2½, while most Boomers waited until theirs were 7. (Source: "Guess Who Didn’t Save for College," Pamela Kruger, New York Times, 3/8/98) In this, they are more like their grandparents, the Matures. A study by Alliance Capital Management revealed that 68 % of Gen-X parents were setting money aside for their children’s college education, compared to just 51% of Boomers between age 30 and 49. The average Gen-X Moms and Dads start putting money away for college when their kids are 2½, while most Boomers waited until theirs were 7. (Source: "Guess Who Didn’t Save for College," Pamela Kruger, New York Times, 3/8/98) In this, they are more like their grandparents, the Matures. A study by Alliance Capital Management revealed that 68 % of Gen-X parents were setting money aside for their children’s college education, compared to just 51% of Boomers between age 30 and 49. The average Gen-X Moms and Dads start putting money away for college when their kids are 2½, while most Boomers waited until theirs were 7. (Source: "Guess Who Didn’t Save for College," Pamela Kruger, New York Times, 3/8/98)

Many Gen-Xers also understand that lifetime financial security is within easy reach of people who develop good money habits early, who don't just get ad hoc advice about insurance and other financial products, but build relationships with people like you and other professionals such as tax attorneys and CPAs.Many Gen-Xers also understand that lifetime financial security is within easy reach of people who develop good money habits early, who don't just get ad hoc advice about insurance and other financial products, but build relationships with people like you and other professionals such as tax attorneys and CPAs.

Xers who get the message can benefit from it as they grow through one generational cohort to the next. They represent Generation X at its best, and reveal this generation's potential. Xers who get the message can benefit from it as they grow through one generational cohort to the next. They represent Generation X at its best, and reveal this generation's potential.

Here’s one now…

"About a year and a half ago, Beth Gorny, 27, switched employers thinking her new job was great, except for one thing. The firm didn’t offer automatic withdrawal for 401(k) retirement savings. Gorny joined an effort to persuade the human resources department to add the benefit. "About a year and a half ago, Beth Gorny, 27, switched employers thinking her new job was great, except for one thing. The firm didn’t offer automatic withdrawal for 401(k) retirement savings. Gorny joined an effort to persuade the human resources department to add the benefit. "About a year and a half ago, Beth Gorny, 27, switched employers thinking her new job was great, except for one thing. The firm didn’t offer automatic withdrawal for 401(k) retirement savings. Gorny joined an effort to persuade the human resources department to add the benefit. "About a year and a half ago, Beth Gorny, 27, switched employers thinking her new job was great, except for one thing. The firm didn’t offer automatic withdrawal for 401(k) retirement savings. Gorny joined an effort to persuade the human resources department to add the benefit.

"Top managers agreed and kicked in a provision for company contributions. Gorny signed up and is contributing 7 percent of her pay to the account.

"Gorny…is doing the right thing to cushion herself against whatever may happen to her generation in retirement, which may include cutbacks in Social Security or Medicare benefits, forced retirement, high medical costs or higher costs of living. She started saving early; she has been consistent; and she chose a reasonably aggressive investment fund in which she put her savings, a stock mutual fund." (Source: "Young People Must Save Earlier for Retirement," The Tampa Tribune, 10/22/98)

Helping Matures and Boomers prepare for and enjoy long, well-financed retirements...keeping Gen-Xers’ wealth accumulation plans on track no matter what...helping "Cyber Boomers" chart their own course to the good life. These are the kinds of issues that will be keeping financial services professionals busy in the years ahead.Helping Matures and Boomers prepare for and enjoy long, well-financed retirements...keeping Gen-Xers’ wealth accumulation plans on track no matter what...helping "Cyber Boomers" chart their own course to the good life. These are the kinds of issues that will be keeping financial services professionals busy in the years ahead.

Want to Know More?

Financial services representatives who want to know more about Generational Marketing should not miss these Marketing Guides available from Pelican Island Publishing:

The Mature Market - A Generation at the Crossroads
Boomers! - Marketing to the "Me Generation"
Marketing to Generation X - New Ideas in a Changing World

These publications offer profiles of key generational "markers," a review of the expectations each age group has of financial services advisors, plus cohort-specific prospecting tips and hands-on approach techniques.

William L. Willard, CLU is a financial services journalist of some renown. He's also a long-time friend and associate. Bill's writings for clients, about markets, and in many training programs bring information to practitioners that they can't easily get from other sources and rarely as well written or usable. You can contact Bill by email w.willard3@knology.net, by phone at 727-724-8338 or fax at 727-724-9069.

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