“My dear graduates, let me be frank, the best years are very much ahead of you. And they can be whatever you want them to be … You’re going to continue to evolve in unforeseen ways. What defines you now will be mere shades and hues of a more vibrant you over the next five, 10, 50 years. Honestly, I can’t think of anything more liberating than that, knowing that life will look differently than you think it will.”
~ Actress Octavia Spencer, Commencement Speech for Kent State University Class of 2017
We are coming up on the tail end of another graduation season, with another set of young adults going into the world – to strive and to build, to work and to spend. This will be the first half of a series about the youngest generation of adults, focusing on their generalized approach toward money matters and what companies are poised to benefit from them.
This year’s high-school graduates fall just past the midpoint of the birth years that demographers use to define Generation Z (1997-2010). More than half of Gen Z are now legally adults. The generation ranges in age from 13 to 26.
Demographics are destiny – that’s what our Head of Research, Tom Lee, constantly repeats as a mantra. This forms part of the foundation for his perennially outperforming Granny Shots stock list. Demographics are why Lee looks for companies involved in AI and automation, and demographics are why Lee looks for companies poised to benefit from the rise of Millennials.
The Pew Research Center defines Millennials as people born between 1981 and 1996. That means the oldest Millennials are now in their 40s, entering their peak earnings years. They will remain influential for decades to come. But Gen Z is the future. Over the next two decades, they will follow in the footsteps of their predecessors, growing their income and spending power. With a size comparable to that of Millennials, Gen Z is about to play an increasingly prominent role in driving the U.S. and global economies.
Gen Z differs from previous generations in one key respect: its members wield more influence on their parents (typically Generation X) than previous generations did with their parents. Between their growing impact on the market and their already significant influence on Generation X, it makes sense to examine what our youngest adults think, how they might change society (hopefully for the better), and which companies are poised to benefit.
“Give me a child until he is 7, and I will show you the man.” ~ Aristotle
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