If you've found yourself discussing business models or financial planning with a Millennial or Gen Z'er, you may have encountered a palpable discomfort. I've observed this as an innovation coach with experience teaching from undergrads to Ph.D. students. Money is a topic this younger generation would rather avoid.
The Money Bias: A Statistical Snapshot
Interestingly, the numbers back this up. According to a study from the Journal of Behavioral and Experimental Economics, Millennials are significantly more likely than older generations to have negative attitudes toward money, seeing it as a potential source of corruption rather than a means to achieve goals (Journal of Behavioral and Experimental Economics, 2018).
The Complexity of the Money Bias
So why do Millennials and Gen Z have a love-hate relationship with money? The relationship is complex and likely a result of several factors, including the 2008 financial crisis and the rise of social entrepreneurship, which has shifted the emphasis from profit to impact. However, avoiding conversations about money does a disservice to their innovative efforts and undermines their ability to bring about the changes they desire.
Five Tips for Navigating the Money Bias
Redefine Wealth
Wealth isn't just about money; it's about freedom—freedom to make choices that align with your values. The sooner you realize this, the sooner you can start leveraging wealth as a tool for good.
Fuel for Your Mission
Consider money as a resource to further your mission. A study from Harvard Business Review suggests that companies focusing on a mission and vision have employees who are more engaged, loyal, and perform better (Harvard Business Review, 2019).
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The Ethics of Earning
Don't equate making money with being greedy. A Nielsen report found that 81% of global consumers believe businesses should help improve the environment (Nielsen, 2018). This indicates that consumers expect businesses to make money responsibly.
Break the Zero-Sum Mindset
A 2016 report from Deloitte revealed that Millennials are less likely than other generations to believe in zero-sum games, i.e., your win necessitates my loss (Deloitte, 2016). Businesses today often operate on a win-win model, where both parties can benefit.
The 95/5 Rule
Adopt the 95/5 rule: allocate 95% of your time to paid work and 5% to pro bono causes. A small commitment like this can allow you to contribute to society while also earning a living, bridging the gap between financial gain and ethical concerns.
Conclusions
The reluctance to discuss money may stem from a complex web of social and economic factors, but the first step to remediation is open conversation. By addressing the subject head-on and integrating these tips into our mindset, we can better align our financial decisions with our ethical convictions.
Your thoughts are always welcome—let's keep this conversation respectful and constructive.
