JWT’s AnxietyIndex is designed as a place to discuss how brands and consumers are responding to the global recession. With daily content updates, AnxietyIndex.com includes contributions from around JWT’s network, offering a truly global perspective.
As Canadian Boomers age, concern is building over the approximately $1 trillion that will be left behind in the country’s largest wealth transference in history. We’re seeing anxieties rise over this wealth transference, as well as conflicting opinions on what Boomers should be doing with their money leading up to and into their retirement. The Bank of Montreal, one of Canada’s top financial institutions, recently released a wealth transference report, predicting that on average each Boomer will bequeath around $100,000. What happens to this money? According to BMO’s study, 79 percent of beneficiaries will use it to reduce debt. Undoubtedly, student debt could be part of that bucket.
Stacked next to Boomers’ wealth transference anxieties, many are wondering: Do I support my kids now and risk my financial future or wait till after I die? A June study by Scotiabank highlights this financial dilemma. “Not surprisingly, Baby Boomer remorse over retirement planning arises as obstacles begin to appear in the path toward the comfortable lifestyles that we all dream of,” says Lisa Ritchie, Scotiabank’s SVP of Customer Knowledge and Insights, in a press release.
With these Boomer concerns making headlines, banks like BMO and Scotiabank are getting ahead of the issue and pointing consumers to the financial counseling and planning they provide—something we’ll see more brands do as this subject gains traction among Boomers.
In Colombia, the unemployment rate among young people hovers around 47 percent. For this cohort, the idea of a better future is a difficult dream to hold on to. There’s little hope of saving enough money for a home or going to college. Plus, Colombians tend to presume that opening a savings account will require a significant amount of money and come with too many terms and conditions. Many simply keep cash under their mattress or opt for other informal savings schemes.
Against this background, local banking institution Banco Caja Social is working to address the structural causes of poverty by trying to develop a culture that believes in the benefits of saving via a bank account. The bank helps by offering flexible terms and conditions that cater to each person’s needs. In a recent campaign, a TV commercial showcases a young man in a hard hat who’s seeking to “go further” in life by advancing in his education. “I have to save to accomplish my goals,” he says. “That’s why I opened my ‘Friend Account,’ to save. And I really save without being charged.”
For young people, the idea of having a bank on their side, helping them move ahead, may help motivate them to start banking and to do so with Caja Social.
Recently, a story on NPRhighlighted two dueling ad campaigns: a pro-spending campaign out of Finland that includes an ad featuring an evil-looking piggybank and reads, “Don’t feed the recession.” Meanwhile, a pro-saving effort from the American Institute of Certified Public Accountants advises Americans to “Feed the pig,” telling us how much we could save over 10 years by brown-bagging or drinking tap rather than bottled water. Sure, you would expect this from someone in advertising, but I’m for the Finnish campaign: It’s a nod to the paradox of thrift—nations of people who stop spending can wreak further havoc on the economy and, in turn, their own lives.