Bemoaning younger generations’ lack of “adult” skills has become something of a sport for older generations: “They can’t balance a checkbook!” “They can’t change a tire!” (particularly in light of “adulting classes” that popped up for this age group in recent years). And while some skills considered fundamental in the past have simply evolved over time, plenty of other basics like knowing how to make and stick to a budget, cook a meal, and fix something that breaks around the house remain crucially important, but are increasingly not taught in school. What’s more, lacking such skills can cause anxiety for young adults who enter the “real world” feeling like they aren’t equipped with practical skills to take care of themselves.
Shaming young adults for what they never had the opportunity to learn isn’t the answer, though. As school curriculums have shifted more toward testing benchmarks and college readiness, home economics and shop classes have been cast aside. And while young adults tend to lag more in these “life skills,” many Americans of all age groups struggle with things like financial literacy, cooking know-how, and DIY acumen.
The first step in any learning journey is to figure out what you don’t know. With that in mind, explore the infographics below to see how young people stack up in terms of life skills as well as get some ideas for how to bridge those gaps if you’re feeling anxious about your own “adulting” knowledge.
How social gaming can benefit mental, physical, and emotional well-being
Dr. Lisa Shin
When it comes to financial literacy, young adults lag behind other generations in their understanding of personal finance — and the gap is getting wider. In the last decade, the percentage of this age group who could correctly answer the “Big Three” financial literacy questions* — which tests for understanding of interest rates, inflation,
and risk diversification — fell by half. What’s more, while all age groups overestimate their own financial knowledge, the gap between those who self-reported high financial literacy and those who could actually answer the three questions correctly is larger among the youngest generations — only 19% could claim both among adults 18-37,
vs. 40% of adults 38-64, according to TIAA Institute.
That knowledge gap represents more than just an incorrect answer on a test; misunderstanding of concepts like interest rates has very real-world implications for young adults when taking on debt. Forty-three percent of adults 18-37 have outstanding student loan debt (up from 34% in 2012), yet troublingly, 47% report not knowing what their loan repayment bill would be when they accepted it. Perhaps unsurprisingly, more than 50% are concerned they might not be able to pay off their student loans. Relatedly, the same TIAA study found that 60% of young adults engage in expensive credit card behaviors such as only paying the minimum amount due, making a late payment, going over their credit limit, or requiring a cash advance on their card.
Lagging financial literacy among young adults isn’t surprising as only 21 states require high schoolers to take any coursework in personal finance, and in about three-quarters of those cases, it’s integrated into another class. Because literacy is the first step to better financial outcomes, experts agree that more financial education is needed in both the classroom and within workplaces, to catch students early and as they enter the workforce. For those who want to DIY, there are apps, podcasts, and even an online game for helping you beef up your money knowledge.
Mortgage Loan Originations by Age Group
Owned a Home by Age 30
Another explanation for young adults’ lack of financial knowledge is that they are arriving at that largest financial milestone — purchasing a house — later than previous generations. (Their high proportion of student loans has much to do with that, of course, as does the fact that they earn 20% less than boomers, despite being better educated.) Gen Z, whose oldest members are only 24 in 2021, have just started to dip their toe in the housing market. It remains to be seen whether they will follow in the footsteps of millennials, less than half of whom own a home, and just over 40% achieved it by the time they turned 30. That’s 6 percentage points off where Gen Xers were at that age, who in turn trailed boomers by just 3 points.
The process of buying a home gives you a de facto crash course in personal finance — there’s saving
for the down payment, figuring out the difference between a fixed vs. an adjustable rate mortgage, and budgeting for all the extras like taxes, closing costs, and ongoing maintenance. While it’s understandable that young adults wouldn’t possess such knowledge before they’re forced to learn it, consider doing research to educate yourself on things like mortgage interest rates and how much you’d need to save for
a down payment in your area long before you intend to buy a home. It can help save you the stress of having to learn it on the fly and make you feel more confident about your money choices.
Home Maintenance Knowledge
5
Confidence in the Kitchen
As a result of becoming homeowners later in life compared to previous generations, young adults also
lag in knowledge about basic home repairs that have traditionally been thought of as “life skills,” tasks like unclogging a drain or cleaning the gutters. According to one poll, 42% of adults 18-34 have felt embarrassed by their lack of home maintenance knowledge, significantly higher than any other age group (averaging about 25% for adults 35-54 and 18% for adults 55+). Young adults in Gen Z are more likely than their millennial counterparts to lack skills in the kitchen — only 26% cook most of their own food and 35% feel confident in their cooking (both figures are above half for millennials).
Despite this knowledge gap, young adults are motivated to try to bridge it. Fifty-three percent of Gen Zers report that they enjoy cooking, and almost three-fourths want to learn to cook more (figures that are also high for millennials). Look no further than the explosion of at-home meal kits to see those stats in action. As for home maintenance, young adults are actually more likely to attempt a DIY fix for an urgent issue than older adults (34% of adults 18-34 vs 21% of adults 55-64, who are ahead in such knowledge). While they may not possess the skills already, young adults know that a DIY YouTube tutorial is likely only a few clicks away.
*The Big Three financial literacy questions can be viewed on page 5 of this report.
CREDITS
Written by Andrea Morabito
Designed by Allie Pakrosnis
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4
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Young Adults' Financial Knowledge Over Time
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Total U.S. video game players
155
million
214
million
227
million
Younger Generations’ Financial Knowledge vs. Older Adults
1
UNCLOGGING A DRAIN
FAN INSTALLATION
GUTTER CLEANING
GARDENING
While the classroom is great for expanding our curiosity and introducing us to new subjects and bases
of knowledge, the education required to navigate the everyday demands of being an adult doesn’t end there. Schools and even workplaces can and should do more to help bridge these life skills gaps for young adults, especially related to personal finance. For tech-native Gen Zers looking to learn, cooking tutorials and DIY hacks are plentiful online and an easy way to boost confidence, or go analog and ask an older relative to teach you a skill (they’ll love that you asked). Better yet, as Dr. Shin suggests, take any of these steps with a friend or two — if you don’t know how to do it, chances are someone else doesn’t, either.
2
Tufts University Professor of Psychology and Pearson Author
Is the solution cutting back on screen time though? Some researchers say not necessarily. While many experts tout the benefits of a “digital detox” or limiting screen time, there is little research to suggest these practices have any tangible benefit, at all. That’s because screen time isn’t created equal, and all tech isn’t necessarily “bad”: scrolling social media has different effects than chatting with a loved one over text, or connecting with friends over a strategy game.
All of this isn’t to say that some gaming habits can’t become problematic. In 2018, the World Health Organization recognized “gaming disorder” in the International Classification of Diseases, following the American Psychiatric Association’s move to add “internet gaming disorder” as a phenomenon in the DSM-5. In August, China even moved to drastically limit online gaming for those under 18, in an effort to “combat gaming addiction.”
How Often Gamers Log On
4
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Where Our Eyes Are Daily
5
The effects games have on our brains can even help us stay in better shape. One study found that among families, gamifying physical activity (by awarding points for certain activities) helped participants meet activity goals on more days. Competition through virtual leaderboards can help motivate people to work out, and one study found it was even more inspiring than “supportive” online fitness platforms, where users can message and post to others, but not track their progress. While even the most active games may not be a sufficient substitute for a full-on workout, playing a video game was found to be less harmful to your health than sedentary screen time, like binge watching a T.V. show. It’s set to be a lucrative industry too: the online fitness market is already valued at $7.99 billion, and it’s expected to reach nearly $60 billion by 2027.
3
Socialization isn’t the only benefit researchers have associated with gaming, either. Though video game research is fairly new, many studies have identified that video games can help us build cognitive skills, increase neuroplasticity, and even improve how the hippocampus functions. Researchers saw these advantages IRL, too: gamers in their studies could read smaller fonts, drive better in fog, and multitask more effectively.
Games in Class
2
Video game designer and Pearson author of
The trend isn’t likely to decline as pandemic restrictions ease, either. Most gamers say they will continue to play in their spare time, and the global gaming industry expects growth to expand in this category by 32% from 2021 to 2025. The category of games expected to see the most expansion? That would be social games, or video games that require social interaction between players, as they appeal
to gamers of all ages.
Right now, nearly two-thirds of Americans play video games, a number that skyrocketed by nearly 30 percent from 2015 to 2020. With stay-at-home orders in place in 2020 and 2021, existing gamers found themselves playing more, while new gamers joined in on the phenomenon. For many, picking up a controller provided a necessary outlet for stress relief,
a much-needed distraction, and a lifeline to social interactions. Games released during
the pandemic, such as Animal Crossing and Among Us, created cultural phenomena, where even celebrities, politicians, and influencers were accessible in these online worlds.
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2021
2020
2015
Gamers in the U.S.
1
Sponsored by
The New Guide to
A roadmap to acquiring fundamental life skills
2018
2009
34%
21%
19%
2015
Respondents age 18-37 who correctly answered “Big 3” financial literacy questions:
2012
16%
perception
Reality
Click to toggle
Has high financial literacy self-assessment
Adults 18-27
Adults 28-37
Adults 38-64
56%
66%
71%
13%
18%
34%
Answered "Big 3" questions correctly
*for primary residence, in Q1 2020, largest 60 metros in the U.S.
42%
48%
51%
millennials
generation x
Baby Boomers
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Hover over each section to view data
Adults 55-64
10%
Adults 45-54
17%
Adults 65+
6%
Adults 35-44
27%
Adults 25-34
35%
Adults 18-24
5%
71%
35%
26%
66%
51%
55%
Would love to learn how to cook more
Feel they're a good cook compared to others they know
Make most of their own food
millennials
GEneration z
Click to toggle
50%
66%
67%
Percent of homeowners who would be confident enough to DIY project
Age 18-34
Age 35-44
Age 45-54
73%
Age 55-64
69%
Age 65+
52%
63%
64%
72%
61%
Avg.
30%
53%
51%
46%
43%
Avg.
20%
40%
37%
28%
26%
Avg.
Avg.
Tufts University Professor of Psychology and Pearson Author
Dr. Lisa Shin
Source 1: TIAA Institute / Source 2: National Assocation of REALTORS® & Move, Inc. / Source 3: Apartment List
Source 4: The Hartman Group / Source 5: Puls Technologies Inc.
Age of borrowers who worked with a lender to secure a mortgage loan
Sponsored by
The New
Bemoaning younger generations’ lack of “adult” skills has become something of a sport for older generations: “They can’t balance a checkbook!” “They can’t change a tire!” (particularly in light of “adulting classes” that popped up for this age group in recent years). And while some skills considered fundamental in the past have simply evolved over time, plenty of other basics like knowing how to make and stick to a budget, cook a meal, and fix something that breaks around the house remain crucially important, but are increasingly not taught in school. What’s more, lacking such skills can cause anxiety for young adults who enter the “real world” feeling like they aren’t equipped with practical skills to take care of themselves.
Hello
Bemoaning younger generations’ lack of “adult” skills has become something of a sport for older generations: “They can’t balance a checkbook!” “They can’t change a tire!” (particularly in light of “adulting classes” that popped up for this age group in recent years). And while some skills considered fundamental in the past have simply evolved over time, plenty of other basics like knowing how to make and stick to a budget, cook a meal, and fix something that breaks around the house remain crucially important, but are increasingly not taught in school. What’s more, lacking such skills can cause anxiety for young adults who enter the “real world” feeling like they aren’t equipped with practical skills to take care of themselves.
The first step in any learning journey is to figure out what you don’t know. With that in mind, explore the infographics below to see how young people stack up in terms of life skills as well as get some ideas for how to bridge those gaps if you’re feeling anxious about your own “adulting” knowledge.
Tap each device to view data
That knowledge gap represents more
than just an incorrect answer on a test; misunderstanding of concepts like interest rates has very real-world implications for young adults when taking on debt. Forty-three percent of adults 18-37 have outstanding student loan debt (up from 34% in 2012), yet troublingly, 47% report not knowing what
their loan repayment bill would be when they accepted it. Perhaps unsurprisingly, more than 50% are concerned they might not be able to pay off their student loans. Relatedly, the same TIAA study found that 60% of young adults engage in expensive credit card behaviors such as only paying the minimum amount due, making a late payment, going over their credit limit, or requiring a cash advance on their card.
There
Tap to toggle
Adults 25-34
Adults 35-44
Adults 25-34
Adults 18-24
6%
6%
6%
1,414
lbs of CO
emissions
per year
2
3,677
lbs of CO
emissions
per year
2
5,939
lbs of CO
emissions
per year
2
per week
1 day
Tap buttons to view data
75%
68%
73%
45%
13%
16%
13%
27%
Baby Boomers
Gen X
Millennials
Gen Z
dissatisfied
Satisfied
Tap to toggle
UNCLOGGING A DRAIN
GARDENING
FAN INSTALLATION
GUTTER CLEANING
Adults 18-24
Ultimately, there’s still much we can learn
from video games and a lot to study about their potential effects. The best way to do that, researchers say, will require another shift, too: changing how we quantify and study our screen time to be more holistic, rather than just based on numbers. While we may not yet have a complete understanding of gaming’s impact on how we learn and socialize, what
we do know is that it has more positive effects than first suspected.
Tufts University Professor of Psychology and Pearson Author
Dr. Lisa Shin