Wallet Watch

That’s the question that has walletwatch stumped, despite being a member of Gen Y himself.

For example, when a member of Gen Y is running short of cash between paydays, where does (s)he turn to for the best advice on where to get a loan? Or when its time to buy a car? Or buy a house? Or what is the best credit card to choose?

Our country does a pretty poor job of financial education in general. Wouldn’t it be terrific if, for example, we taught high school students Finance 101 — how to balance a bank account, how to buy a house when you’re ready, and the importance of saving for retirement. And it seems that unlike their parents, Gen Y is less likely to get its advice from the bank teller in our neighborhood, given that Gen Y does its banking online or with bank tellers who are on the other side of bulletproof glass. And Gen Y is probably unlikely to go to financial literacy seminars either.

Based on anecdotal stories, it seems that many twenty- and thirty-somethings turn to parents in these situations. It seems mother (and father) still knows best when it comes to who to see about buying a home, or what are the best 401(k) options. But this only reinforces the theory that wealth is generational. That is, children whose parents were homeowners are likely to become homeowners themselves due to family culture.

Another answer is that Gen Y is using each other for financial advice. walletwatch has certainly had many conversations with Gen Y’ers about what savings options are the best (I recommend ING Direct), who has the lowest fees on Roth IRAs, and where the best real estate investments are.  Another answer is the internet — there’s a host of personal finance bloggers and columnists. But unfortunately the internet is full of financial scams (although less so post-housing crisis).

So where does Generation Y get its financial advice? I’m still trying to figure this one out and will keep blogging ’til I do.