Generation X Steps Up

“Generation X sets itself apart in two ways. First, GenXers are emerging as the
“consumer” generation of today. Second, they are resilient and relatively optimistic.
While pressure to buy material possessions remains relatively consistent for most
generations, 34% of Generation X agree that the pressure they feel to buy more and
better material possessions is greater than before, up from 29% in 2009. And, 61%
of Generation Xers report feeling like the bar is constantly rising in terms of the basic
necessities in life, an increase from 58% in 2009.

“Despite this, Generation X is the only generation to be as optimistic about their

personal financial situation this year as they were last year – 46% expect it to get

better, vs. 35% overall. And almost on par with Boomers, 32% of GenXers say

they’ve achieved the dream, up from 24% in 2009. Furthermore, 80% of GenXers

believe it’s possible for them to achieve the dream, compared to 70% overall and

just 53% of Boomers. Generation X, with a significant amount of time left in the

workforce to both continue to spend and build their safety net, remains resilient and

optimistic about their future.”

A significant number of Americans are helping their family members financially – even though they may also be struggling themselves. Nearly half (47 percent) of Americans say they have given money to a family member in the past year so they can pay their bills, and more than one-third (35 percent) have had a family member give them money in the past year.

A Rising Bar of Expectations
Though many are struggling to make ends meet, needs and expectations continue to increase. More than half (58 percent) of Americans believe that the bar is constantly rising in terms of the basic necessities in life. Three in ten (29 percent) feel more pressure to buy more and better material possessions. Americans also expect more from the American dream itself. Since the first Study in 2006, Americans are more likely to define the dream as financial security (from 59 percent to 65 percent), family and children (from 42 percent to 58percent), a comfortable retirement (from 31 percent to 36 percent) and marriage (from 21 percent to 29 percent). Not one component of the dream has decreased during this time.

“Given the financial pressures that most Americans are facing, one might expect us to recalibrate somewhat, but instead, Americans are expecting even more for themselves – all while dealing with mounting stress from their daily lives,” said Hirschhorn.

Despite Efforts, Americans Close to the Financial Edge

Many Americans still find themselves close to financial ruin should they lose their job: 45 percent could not take care of expenses for more than a month, and 65 percent could not do so for more than three months. And, their fears of job loss are high with more than half (55 percent) of Americans concerned about losing their job.

In addition, the lack of a personal safety net (a “cash cushion,” retirement savings as well as auto, health, home and life insurance) appears to be contributing to the pessimism about some Americans’ own personal financial recovery. Two-thirds (69 percent) of Americans do not feel that they currently have an adequate safety net, and 95 percent of those are concerned about it.

Considering all these financial pressures, it’s no surprise that stress is running high, with 45 percent of Americans saying that concerns about how they are going to “make ends meet” are keeping them up at night, and 52 percent saying they feel more stress in performing their job requirements.

Safety Net

Americans who consider themselves to have an adequate personal safety net are twice as likely to feel they have achieved the American dream as those who do not (57 percent vs. 24).

“This result, combined with the response that 77 percent of Americans say that they are working toward creating a personal safety net, may be telling us that building a safety net is an important prerequisite for Americans to be firmly on the road to recovery – both emotionally and financially,” added Hirschhorn.

Methodology

From April 14 – 21, 2010 Strategy First Partners in conjunction with Penn Schoen Berland conducted 2,201 online surveys in the United States among the general population as part of The 2010 MetLife Study of the American Dream.

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