Navigating the Future: How the Great Wealth Transfer Will Reshape Culture and Entertainment

Introduction

As we stand on the brink of one of the most significant wealth transfers in history, it's imperative to consider how this shift will redefine the landscape of culture and entertainment.

According to some estimates, roughly $68 trillion will be transferred from baby boomers to millennials and Gen Z in the next decade. This is the largest intergenerational wealth transfer in history, and it will have profound implications for the economy, technology, and culture.

Millennials (born between the early 1980s and 1996), and Gen Z (born between 1997 and 2012), were raised in a time of unrelenting technological and social change. They are generally equipped with a mindset that starkly contrasts with previous generations. Most find traditional institutions suspect. The tech bubble, the currency crisis, the pandemic, income inequality, and concerns about social and environmental injustices have shaped their worldview and values.

With newfound money in their pockets, the younger generations stand to spend and invest this money in ways that deviate from generations past. How so? Here are some of the thoughts, trends and behaviors that might define the future of entertainment and finance.

Ripple Effects on Economy, Technology, and Culture

This wealth transfer is more than a financial transaction; it's a cultural and technological shift. Millenials and Gen Z are the first truly “digital natives”, as they were the first to grow up alongside the internet. Their influence is directly related to the exponential growth of technology and their ability to master it. They will inherit capital, power, and influence…and technology will be their tool for creating ripple effects across the economy, technology, and culture.

They are more entrepreneurial, and with this financial security, they're likely to invest and fund businesses in familiar territories – the digital world. They are also more socially conscious than older generations, valuing purpose and passions. Increased digitalization and personalized experiences across the board are what they seek and are what is driving this shift. For instance, they prefer online solutions and mobile apps.

Changing Habits: Time Investment and Nostalgia

One of the most striking characteristics of millennials and Gen Z is their affinity for digital worlds. They spend a significant amount of their time and money on online platforms that offer immersive and interactive experiences, such as Roblox, TikTok, and Fortnite. These platforms are not just games, but social and creative spaces where users can express themselves, connect with others, and create their own content.

According to Roblox, over 70 million people play Roblox daily, and the platform has over 200 million monthly active users.

*Even more eye-opening is the fact that 2/3 of American children aged 9-12 play Roblox daily for an average of 2.5 hours per day. To put that into perspective, assuming 8 hours of sleep and 8 hours in school, this means that many kids today are spending nearly 30% of their remaining waking hours on Roblox.*

And this doesn’t even account for other platforms like TikTok, the short-form video app that has over 1 billion monthly active users, and is the most downloaded app in the world. These numbers are staggering, and they show how much influence and potential these digital worlds have.

The time spent on these platforms isn't just a passing phase. The platforms are growing with their users, embedding a sense of nostalgia and loyalty. This built-in nostalgia, combined with a craving for convenience and familiarity, suggests that future entertainment and culture will be deeply intertwined with these digital experiences.

The Digital Playground: Robux, Roblox, and Financial Literacy

If you have kids, you are most likely familiar with Robux (the virtual currency of Roblox). In the first 9 months of 2023, $2.4 Billion worth of Robux was purchased, an economy that rivals the GDP of several countries. Imagine a world where virtual currency like Robux isn't just for in-game purchases but a tool for financial education. Platforms like Roblox aren't merely gaming realms; they're becoming financial literacy classrooms. And with their staggering penetration numbers, these platforms offer a unique opportunity to integrate learning with play, shaping a financially savvy future generation.

Creators of the Future: The Rise of Young Innovators

In this digital era, children are growing into creators themselves. They're not just consuming content; they're actively shaping it. This creator culture, nurtured in their formative years, will likely lead to a future where innovation and entrepreneurship are the norms, rather than exceptions.

The Digital-First Social Fabric

With half of all relationships now starting online, the digital world is no longer an escape from reality; it is reality. This digital-first approach in social interactions reflects a broader shift in lifestyle and preferences, particularly among the younger generations.

The Great Wealth Transfer: A Shift Towards the Subscription Economy

As we anticipate the Great Wealth Transfer, it's crucial to understand that millennials and Gen Z might not follow the traditional path of wealth utilization. The inclination towards renting over homeownership and the preference for the subscription economy over outright purchases mark a significant shift in economic behavior.

Collectibles and Influencer Impact

The younger generations’ investment preferences extend to collectibles and assets endorsed by social media influencers. This trend highlights a shift from traditional investment strategies to more personalized and culturally relevant ones.

Digitalization and Personalized Engagements

Gen Z, as the first digitally native generation, demands personalized digital solutions. They prefer mobile apps and online solutions for financial management, expecting 24/7 access to basically everything. This preference necessitates a move towards innovative business models.

Conclusion: Embracing Change

As we sprint to understand the changing dynamics of society and technology, it's clear that standing still is not an option. Businesses and institutions must adapt to serve the future leaders and consumers – Millennials and Gen Z. In a world where digitalization, personalization, and innovation are non-negotiable, those who fail to evolve risk becoming obsolete, much like the proverbial dinosaur. Govern yourselves accordingly.