Coronavirus: Generation Y facing the second financial crisis in two decades

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Generation Y faces the second financial crisis in two decades, which presents monumental challenges for those now trying to buy a home.Hundreds of thousands of Canadians have lost their jobs due to the new coronavirus pandemic and last week the new Governor of the Bank of Canada said some of these jobs would not come back, echoing the 2008 financial crisis .

Millennials – people between the ages of 20 and 40 – are at a critical point in their financial development, said Moshe Lander, an economist at Concordia University.

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Lander says it can take someone years to recover the income they lost early in their career.

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“You could really talk about almost half of your working life to just try to repair the damage that has been done,” he said, speaking of Zoom from Montreal.

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He said the solution – for anyone facing the uncertainty of COVID-19 – is to save money.

Financial planner Janea Dieno told Global News that she had young clients who saw what could happen in 2008 if they had no savings.

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“I have had several millennials who wanted to shop for the first time,” she said.

“So now they’re looking at their tax-free savings account and their RRSPs … and want to take that money and put a down payment on a house. ”

Mira Trebilcock was attending a university north of Chicago when she saw the effects of the 2008 financial crisis.

“Many people were badly affected by the accident,” she told Global News.

“And then some of the students I went to school with, whose parents were badly affected. This obviously affected their ability to continue (with their education). “

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Trebilcock said that she had always saved her money, a habit reinforced by her parents’ encouragement.

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She is one of the many millennia who have witnessed the financial crisis and who are now focused on securing their own future.

Facebook groups with names like “Personal Finance for Canadian Millennials” or “Millennial Finance” provide members with a space to share information and strategies for saving money.

Two years ago, Trebilcock bought her first home in Regina, which she credits for being conscientious about her money.

“You realize how informed you are about investing and what to invest in, what mutual funds are there and where to invest your money.”

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