Guest Author: Tim Deatrick, D.Min., CAP, MortarStone
I was in elementary school when I played my first game of Monopoly. My family had gathered for Christmas, and I watched with eager anticipation as the game board was set up. My underdeveloped economic mind assumed the goal of the game was to gain the most cash possible; therefore I moved my token swiftly around the board collecting cash in favor of collecting properties. Needless to say, as family members acquired properties, gained monopolies, and added houses my exit from the game was swift. I can still remember the frustration of how my cash supply was no match for those who acquired and developed real estate.
Monopoly was first released in 1935 by Parker Brothers and over time became a worldwide phenomenon. What you may not realize is that Monopoly was adapted by a game developed in 1903 called The Landlord’s Game. The Landlord’s Game was invented by Elizabeth Magie Phillips and was designed to expose the evils of capitalism and monopolists such as J.P. Morgan, Andrew Carnegie and John D. Rockefeller. Its original intent was to teach Marxist economic policy and advocate for a one tax system to be levied only against real estate owners. She hoped to demonstrate that the winner achieved victory on the backs of the masses. What she didn’t count on was the fact that the masses wanted to be monopolists!*
Fast forward to 2024 and consider the plight of Millennials, Generation Z, and the Alpha Generation. For all intents and purposes, they aren’t significantly different from my own childhood experience. Yes, they will emerge from their learning years and transition into their earning years, but will they be able to achieve the financial security of their parents and grandparents?
For example, according to the National Realtors Association, the median age for a first time home buyer in 2023 was age 36. Only 38% of those under the age of 35 are home owners.The median net worth for a person under the age of 35 is $30,500. In 2022, the median house cost was $433,100. At the same time, median household income was $74,600, which is a 5.8 price to income ratio. That same ratio was half in 1985.
There are currently 43.2 million people who have student loan debt that averages $38,077 per person. Credit card debt is escalating among the rising generations, and credit scores have dropped 20 points for those with credit scores of at least 600.
So what does this mean? Like Monopoly, Baby Boomers and the Silent Generation hold about 74% of the privately held wealth in America while younger generations are struggling to move their pieces around the board.
But what about the $68 Trillion wealth transfer we keep hearing about? The wealth transfer will not necessarily level the playing field because half of that transfer is in the hands of 0.05% of
American wealth holders. The Federal Reserve reports that on average Americans currently inherit $46,200.
So what should we do?
First, it is important that we educate and disciple the older generations to create sustainability for our churches through giving current non-cash assets and end of life estate planning. Every church should be capitalizing on this opportunity to create passive revenue for the future by building an endowment to sustain the brick and mortar that their generation built. We must message the older generations with the language of legacy.
Second, it is imperative that we educate and disciple the younger generations in the areas of financial freedom, giving, and generosity. It is important to have conversations with them to understand their values and concerns with money. Since they are the Go Fund Me generation, we must share a clear and compelling message that shows direct impact and provide opportunities for them to give in ways that are consistent with the way they want to give.
Finally, we must understand our particular context through data insights. While it is tempting to intuit our givers individually and corporately, we can eliminate the guesswork and manage by insight, not intuition. Once we have clarity about our current reality, we can then begin to design strategies that connect with each generation.
Let’s start the conversation. Join CCCU today!
This article was written in partnership with our friends at Christian Stewardship Network. To learn more, visit them at christianstewardshipnetwork.com.
This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.
