TIAA Institute and GFLEC Release Report on Millennials’ Financial Challenges Amid COVID-19
Millennials were facing a challenging financial situation before the current economic crisis triggered by the COVID-19 pandemic, including difficulties with student loan debt and expensive money management practices, according to a new report.
Millennials and Money: Financial Preparedness and Money Management Before COVID-19, written by Annamaria Lusardi, Andrea Hasler and Andrea Bolognesi from the George Washington University’s Global Financial Literacy Excellence Center (GFLEC), provides an update to the Millennials and Money report published in February of this year, contextualizing the current financial situation facing millennials in light of COVID-19’s impact.
As the researchers note, before the current economic crisis, a majority of millennials struggled with — and felt stressed about — their personal finances. Data from the National Financial Capability Study (NFCS) shows that 63 percent felt anxious when thinking about their financial situation. More than half of millennials (53 percent) had not set aside an emergency fund that could cover their expenses for three months.
These statistics from 2018, a time of economic expansion, indicate how ill-prepared millennials were to face an emergency, let alone an economic contraction as significant as the one caused by the COVID-19 pandemic.
One factor contributing to millennials’ lack of savings or access to credit, which adds to this population’s inability to weather economic shocks, could be their debt holdings. In 2018, 44 percent of millennials reported feeling as if they had too much debt, with 51 percent reporting concern over their ability to pay back their student loan(s) in full.
Additionally, researchers found that millennials’ money management practices contribute to their financial fragility. A higher proportion of millennials engage in expensive short- and long-term money management behavior compared to older working-age adults (age 38-64 in 2018). Only 16 percent of millennials could be considered financially literate.
“In addition to a lack of assets and too much debt, expensive money management practices also contribute to millennials’ precarious financial state,” said Annamaria Lusardi, academic director of GFLEC and University Professor of Economics and Accountancy at the GW School of Business. “A staggering 43 percent of millennials used some form of alternative financial services such as payday loans and pawn shops in 2018. Millennials’ extensive use of high-cost borrowing methods, combined with their low level of financial literacy, can put their financial resilience at risk.” 
George Talks Business Lauches Fall 2020 Schedule
The fall schedule of George Talks Business kicks off on Wednesday, Sept. 16, 12:30-1:00 p.m. ET, when Dean Anuj Mehrotra welcomes guest Ellen M. Zane (CCAS '73), CEO Emeritus of Tufts Medical Center. Please visit the GTB page to register for the live stream on the GWSB Facebook page or YouTube channel and for complete schedule information.
James Bailey, Hochberg Professorial Fellow of Leadership Development and professor of management, was quoted in a Business News Daily article, “How to Write a Sales Plan.” Prof. Bailey was also quoted in a U.S. News & World Report article, “The Relevance of an MBA During the COVID-19 Crisis.” 
Lisa Delpy Neirotti, associate professor of sport management and director of the MS in Sport Management program, was quoted in a Marketplace article, “Activist athletes can foster change, but sometimes there's a price.”
GWSB was cited in a U.S. News World Report article, “45 MBA Programs That Train Well-Paid Consultants.”
Research conducted by the Global Financial Literacy Excellence Center was mentioned in a CNBC article, “Here's what it takes for Black girls to become leaders, according to Michelle Obama.”
Christopher Leinberger, Charles Bendit Distinguished Scholar, research professor of business and chairman of the Center for Real Estate & Urban Analysis, was quoted in a Bloomberg Quint article, “Dan Gilbert's Wealth Soars to $34 Billion After Rocket IPO.”
Annamaria Lusardi, university professor of accountancy and of economics and academic director of the Global Financial Literacy Excellence Center, was quoted in a CNBC article, “Millennials missed a decade of financial boom after 2008. It may happen again.”

Ellen M. Zavian, GW professor of sports law, authored a guest column for the Washington Post, “The NCAA whiffed on esports. It's paying a price but can still learn a lesson. Dr. Zavian was also quoted in a New York Times article, “N.B.A. 'Boycott' or Strike: What's the Difference?” and was interviewed for an NPR segment, College Football This Fall Could Create Legal Troubles for NCAA.”

GWSB was ranked #22 in a “Best Online MBAs for 2020” survey compiled by College Consensus, a new college review aggregator.

Congratulations to the GWSB Department of Management, which has ranked #18 for per capita research productivity among private universities in the U.S. for the five-year the period from 2015-2019. The Texas A&M/University of Georgia Rankings of Management Department Research Productivity evaluate aggregate publications by management faculty in the eight most prestigious journals. “I want to thank our fabulous Department of Management scholars who deserve full credit for this amazing accomplishment,” said Department Chairperson Herman Aguinis, Avram Tucker Distinguished Scholar and professor of management.

Congratulations to GWSB alumna Karima M. Woods, MBA ’11, on being confirmed by the Washington, D.C., Council as commissioner of the D.C. Department of Insurance, Securities and Banking (DISB). “I am fully committed to ensuring that I fulfill DISB’s charge to cultivate a regulatory environment that protects consumers, empower and educate residents on financial matters and provide financing for District small businesses,” Commissioner Woods said.

Denit Trust Challenges in Corporate Governance panel presentationThe Ultimate Challenge: What Makes a Corporate Board Effective and What Does Not,” presented by the Business and Law program and GWSB’s Institute for Corporate Responsibility, Wednesday, Sept. 16, 5:30 – 7:00 p.m. ET
Financial Literacy Seminar, Franco Peracchi of Georgetown University will present his paper, “Are People Aware of Their Cognitive Decline? Misperception and Financial Decision Making,” Thursday, Sept. 17, 3:30-4:30 p.m. ET. Click here for more information and to register. The Financial Literacy Seminar Series is a joint presentation by the Federal Reserve Board and the Global Financial Literacy Excellence Center.
GWSB Newsletter Submission *Share your news with the GWSB community* The GWSB Newsletter goes out to GW students, faculty, staff, alumni and campus partners every Wednesday. Please submit all content requests for the GWSB Newsletter by 12:00 PM each Monday through our submission form. Don't forget to use #GWSB or #GWSBProud when posting on social media!
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