Household Dynamics

1. XERS Middle-Child Syndrome QuickFacts What’s Changing Core Values Household Dynamics Now What? Brands & Marketing Quotes of Note Other Resources Download in One NOTE: This document is hyperlinked to allow for interactive navigation of the content. For the full functionality of this document, ensure you are connected to the Internet and viewing in slide show mode. If you opt to print this document, we recommend selecting full Black & White mode for printing to save ink.

2. XERS • QuickFacts • An assortment of facts and figures providing a quick viewof Xers • Born between 1965 and 1978, ages 36-49in 2014 • 19%of the U.S. population (U.S. Census Bureau) • At a population of57.7 million, Xers are sandwiched between two much larger generations: Baby Boomers (74 million) and Millennials (78.3 million) (U.S. Census Bureau) • 74%are parents • 14%are grandparents • 58%still have at least one child under 18 at home • 60%of those married or living together are in dual-income households (2013 U.S. Yankelovich MONITOR) • 72% are homeowners • 45% earn $75,000 or more, compared to 38% of Boomers and 33% of Millennials • 8% are temporarily unemployed • 1%are retired • Generation X has the highest average debt among all cohorts, at $111,121 (Experian)

3. XERS SO MUCH TO DO, SO LITTLE TIME THE UNCERTAIN FUTURE What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Xers

4. XERS • SO MUCH TO DO, SO LITTLE TIME: Given their current lifestage, Xers are being pulled in multiple directions; consequently, many feel they don’t have the time required to manage their myriad responsibilities. BACK What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Xers 60% 67% 52% • of Xers parents agree: “No matter how hard I try, I never seem to have enough time to do all the things I need to do” of Xers agree: “Life today has become much too complicated” • of Xers agree: “I often feel that I have to make too many decisions in one day” (up from 46% in 2013)

5. XERS • THE UNCERTAIN FUTURE: While pragmatic Xers have valued saving from a younger age than did Boomers, the economic downturn hit Xers during critical peak earning years, causing them more stress about both short-term and long-term financial needs than other generations. BACK What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Xers • Feel financially secure • (Top 3 box on 0-10 scale) • Very/fairly worried about having enough money to retire on

6. XERS Like any other generational cohort, Xers navigate life and respond to current conditions—economic booms/busts, technology innovation, etc.—within the context of the values and expectations shaped by the shared experiences of their formative years. SAVVY CoreValues Values shaped by shared experiences in Xers’ formative years DIVERSITY ENTREPRENEURSHIP

7. XERS • SAVVY: From their first days as latchkey kids, Xers have prided themselves on self-reliance and pragmatism. Xers don’t accept anything at face value; they evaluate everything with a combination of critical judgment, knowledge and wariness, and they count on their own skills and abilities to survive and thrive. BACK CoreValues Values shaped by shared experiences in Xers’ formative years of Xers feel it is important for others to see them as “someone who knows how to get things done,” compared with 74% of Boomers. 80%

8. XERS • DIVERSITY: Although we now characterize Millennials as a truly global and multicultural generation, Xers were the first generation to represent meaningful ethnic diversity, household diversity (the first “children of divorce”) and lifestyle diversity. • Xersare the first generation to be less than two-thirds Non-Hispanic White (U.S. Census Bureau) BACK CoreValues Values shaped by shared experiences in Xers’ formative years of Xers agree: “Cultural diversity is one of America’s major sources of strength” 79%

9. XERS • ENTREPRENEURSHIP: Driven by a need to forge a future on their own terms, Xers feel they can’t rely on anyone or anything; they develop their own talents, use their own judgment and succeed in their own way. BACK CoreValues Values shaped by shared experiences in Xers’ formative years • of Xers agree: “I feel that I have to take whatever I can get in this world because no one is going to give me anything” (compared to 50% of Boomers) 61%

10. XERS Didn’t touch this section Generation X is stuck in between two larger generations that receive the lion’s share of marketers’ attention. However, Xers’ self-reliant mentality and hardwired skepticism demonstrate the generation’s grit and resilience. And as the overlooked Xers enter peak earning years, their time in the marketing limelight may have finally come. XERS AGAINST THE WORLD: 72% of Xers agree: “The land of opportunity is becoming the land of disappointment” Middle Child Syndrome Xers are overshadowed by Millennials and Boomers but have embraced their role in the middle and adapted surprisingly well to sluggish economic times FINANCIAL UNCERTAINTY STUCK IN THE MIDDLE GRITTY AND INDEPENDENT FINANCIAL UNCERTAINTY STUCK IN THE MIDDLE GRITTY AND INDEPENDENT

11. XERS FINANCIAL UNCERTAINTY The Great Recession affected no generation’s financial wellbeing more than Generation X, who lost several years of peak earnings. Heavier debt burdens and retirement pessimism add to their dreary fiscal outlook. BACK Middle Child Syndrome Xers are overshadowed by Millennials and Boomers but have embraced their role in the middle and adapted surprisingly well to sluggish economic times 72% 45% $30,039 of Xers agree: “I cannot possibly save as much money each year as the retirement planning tools say I will need to invest in order to have a comfortable retirement” of Xers’ net wealth lost between 2007-2010 (compared to 28% for Boomers) Pew Charitable Trusts Average amount of credit card debt held by Xers, up from $26,000 in 2011 Experian

12. XERS STUCKIN THE MIDDLE Separating two very different generations, Xers are embracing the boring middle with open arms, scoring in between Millennials and Boomers on a host of factors including racial diversity; political, social, and religious beliefs; technology usage and more. Embodying a bridge between two attention-getting generations, Xers realize their position, self-identifying as the least distinct generation. BACK Middle Child Syndrome Xers are overshadowed by Millennials and Boomers but have embraced their role in the middle and adapted surprisingly well to sluggish economic times Favor gay marriage Agree their generation is unique Non-Hispanic White Religiously unaffiliated Pew Research Center Pew Research Center

13. XERS GRITTY AND INDEPENDENT Xers’ savvy and “do-it-yourself” mentality have benefitted the middle generation, guiding them through the worst of the financial crisis and delivering them to the other side as a hardened consumer, distrustful of large organizations, companies, and brands. BACK Middle Child Syndrome Xers are overshadowed by Millennials and Boomers but have embraced their role in the middle and adapted surprisingly well to sluggish economic times 85% 76% • of Xers agree: “I always • know how to get the • information I need to make decisions” of Xers agree: “smaller companies are more concerned about their needs than large companies”

14. XERS HOUSEHOLD DYNAMICS: Generation X’s unique views towards family and gender roles are resulting in an upheaval of traditional life at home, largely due to Xers’ modernized approach to parenting roles and the work-life balance. FAMILY FOCUS EVOLVING ROLES DECISION-MAKING • Household Dynamics • Xers’ attitudes toward family, parenting and gender roles are changing the shape and structure of the household

15. XERS • FAMILY FOCUS: Xershave a more intense and ingrained focus on family and parenting than Boomers did in their 30s and 40s. They are constantly evaluating the trade-offs inherent in achieving work-life balance and considering the downsides of success that comes at the expense of healthy personal and family relationships. BACK • Household Dynamics • Xers’ attitudes toward family, parenting and gender roles are changing the shape and structure of the household 76% • of Xersagree: “I would be willing to pass up a promotion if that promotion meant that I would have less time with my family” • 2013 U.S. Yankelovich MONITOR

16. XERS • EVOLVING ROLES:Xers are leading the way in redefining the traditional roles of moms and dads and shaping a new image of what parents and parenting look like. BACK • Household Dynamics • Xers’ attitudes toward family, parenting and gender roles are changing the shape and structure of the household 18% 48% 57% • of Xer men agree: “Although I’m a man, I am in touch with my feminine side” • of Xers agree: “There is something wrong with a family where the woman earns the money and the man stays home and takes care of the kids” • (2013 U.S. Yankelovich MONITOR) • of Xers feel having children is important in overall life satisfaction, compared to 53% of Millennials and 48% of Boomers • (Top 2 box)

17. XERS • DECISION-MAKING: More than ever, decisions about how to live and what to buy today involve input and guidance from the entire family. No longer is the head of household the sole decision-maker. Now, everyone has a say, including the kids. BACK Household Dynamics Xers’ attitudes toward family, parenting and gender roles are changing the shape and structure of the household 62% 47% • of Xers parents agree: “In my home, deciding on major purchases often involves the entire family” (vs. 48% of Boomer parents) • (2013 U.S. Yankelovich MONITOR) of Xers agree: “I have joint responsibility for spending decisions for my household”

18. XERS WHAT’S YOUR ISSUE? • Now What? • A roadmap for developing strategies related to Xer lifestyles WHY SHOULD I CARE ABOUT THE XERS? WHAT MESSAGING WILL SKEPTICAL XERS TRUST? WHAT ABOUT MY BRAND DO XERS CARE ABOUT?

19. XERS BACK Help! How do I make the case that Xers merit our marketing attention? 2 3 1 SIZE UP SCOPE OUT STRIKE NOW • Now What? • A roadmap for developing strategies related to Xer lifestyles Marketers may see Xers’ aggregate spending power and dismiss their relevance. But in terms of average household income, they sit atop the generational pile. As peak earners in a spending-heavy lifestage, they hold great potential. Find out how Xers fit into your target consumer group—are they aging into or out of your sweet spot? Do their lifestage needs align with your business’s products and services? Due to the cohort’s relative size and attitudinal makeup, Xers represent a challenging moving target. And given the impact of the Great Recession on their financial attitudes, marketers should capitalize on Xers’ period of comparative prosperity.

20. XERS BACK Help! I know Xers are skeptical—what will they connect with? 2 3 1 FAMILY FINANCE FUTURE • Now What? • A roadmap for developing strategies related to Xer lifestyles Over their lifetimes, Xers have reacted against many Boomer lifestyles choices, particularly around family. Xers prize time with family and are willing to sacrifice economic and career opportunities if they compromise their work-life balance. Xers lost a massive amount of personal wealth during the Great Recession and are working to recover it in their peak earning years before retirement. They understand the value of savvy, sound financial planning and prudence. Xers place great value on self-reliance; as they look to the future, this plucky mentality will be a key attitudinal driver of their approaches to saving, spending, leisure and retirement. Don’t patronize the Xer, but instead tap into his and her grit.

21. XERS BACK Help! What does an Xer really want to know about my brand? 2 3 1 SOLIDARITY SAVVY STEADY • Now What? • A roadmap for developing strategies related to Xer lifestyles Like any generation, Xers relate to certain cultural touchstones from their past. Perhaps more than ever, Xer nostalgia is a powerful tool in forging connections. If your brand’s history dates back far enough, share those Polaroids. Xers pride themselves on knowing how to get things done. They like being a step ahead of the curve and getting there with shrewdness and guile. They want to know how your brand is doing the same, or how it can help them get ahead. The middle-child syndrome Xers feel could give the cohort a sense of inadequacy. Instead, however, Xers have maintained a steely reserve in the face of economic and cultural swings. They want to know how your brand is similarly steadfast.

22. XERS • Toyota Highlander: Toyota’s Highlander campaign got a boost from Xer-favorites, The Muppets. Not only do Kermit and the gang induce nostalgia among those who grew up on ‘80s TV, but they also send the message there’s “no room for boring” in the family vehicle. The tagline works to at once affirm this generation’s family-first orientation while help it battle its drab perception. VIEW AD • Hyatt Andaz: To appeal to the new generation of Xer business travelers, Hyatt found that what Xers really wanted was a casual, laid-back hotel experience. The result: Andaz, a sub-brand of boutique hotels influenced by Xer preferences for simplicity, technological innovation and a casual vibe without the trappings of traditional luxury. LEARN MORE • Brands &Marketing • Brands and campaigns that resonate with the values and lifestyles of Xers • Cheerios: Doubling down on diversity with its second installment featuring an interracial family, General Mills understood that the furor it prompted was on the fringes among a vocal minority. Targeting Xers in the midst of forming families and raising children, Cheerios recognized they are the first generation to represent meaningful multicultural and household diversity and have come to expect diversity in casting as basic table stakes. VIEW AD • Chevy Malibu: Chevy showed it really gets Xers’ inclination to prioritize family in the work-life balance equation, suggesting “we’re more into being a partner than making partner.” VIEW AD

23. XERS • “Gen Xers are bookended by two much larger generations—the Baby Boomers ahead and the Millennialsbehind—that are strikingly different from one another. And in most of the ways we take stock of generations—their racial and ethnic makeup; their political, social and religious values; their economic and educational circumstances; their technology usage—Gen Xers are a low-slung, straight-line bridge between two noisy behemoths.” (Generation X: America’s neglected middle child, Pew Research Center) • “Individualistic, undersocializedXers never subscribed to the ‘Keeping Up With the Joneses’ mentality. Even when they do care about what others think, they prefer to appear thrifty, rather than flashy. Today’s most influential young entrepreneurs, like Twitter’s Jack Dorsey, show they’ve made it without donning Tom Ford suits.” (Generation X And The New Frugality. Forbes) • “[Xers] are wary and uncertain about America’s position in the world and about their own place in America. Yet, contrary to the image portrayed by the popular media, this is a savvy generation, enthusiastically ready, willing and able to take on the challenges they face. For Xers, hard work is a pragmatic necessity and they tend to be careful in planning for the future.” (Rocking the Ages: The Yankelovich Report on Generational Marketing, J. Walker Smith and Ann Clurman, The Futures Company) • “Many Gen Xers fear they will never make up ground lost in the deep economic downturn of 2007 to 2009 and the years of slow growth since. Even those who have held on to jobs over the past few years have good reason to feel like they didn’t really get ahead, experts say, because median income has been relatively flat for more than a decade.” (“As Economy Mends, Gen Xers Fear They Will Never Catch Up,” NBC News) • “Xers are finding ways to derive satisfaction from working less. Today’s young moms and dads—by and large Xers—are prioritizing time with their children. Some workers are ditching Wall Street jobs for more fulfilling careers with shorter hours. … Because these Xers are content with spending less, their career changes aren’t as taxing.” (Generation X And The New Frugality. Forbes) • “Since boomers haven't retired, it puts a lot of pressure on Gen X because they want to be the executives of these companies, but they're not getting the opportunities. Gen X is stuck in the middle right now.”("Generation X Fares Poorly During Recession, Study Shows," ABC News) • Quotes of Note • Useful snippets of relevant content about Xers to add color to these insights

24. XERS • OtherResources • Links to additional content on Xers • Future Perspectives • Women 2020 • MONITOR Download • Download on Men • Download on Women • MONITOR LIVE Spotlights • May 2012: More Than Moms • March 2011: Spotlight on Office Politics • MONITOR Minute • Growing Up Gritty • For This Mother’s Day, Consider Unmarried Moms • The New Look of the All-American Family’ • Other Sources • Forget Boomers and Millennials—Here's Why Gen X Has the Most to Worry About, Yahoo Finance • Why Gen X Feels Lousiest About the Recession & Retirement, TIME • Why Gen X Lost Big in the Great Recession, U.S. News & World Report • Generation X: America’s neglected middle child, Pew Research Center • Generation X And The New Frugality. Forbes • Rocking the Ages: The Yankelovich Report on Generational Marketing,J. Walker Smith and Ann Clurman • Generation X: Tales for an Accelerated Culture, by Douglas Coupland • Welcome, America, to the Baby Bust,TIME (originally published February 23, 1987) • Generation X: The Ignored Generation? TIME • The MetLife Study of Gen X: The MTV Generation Moves into Mid-Life, MetLife Mature Market Institute • Retirement Security Across Generations, Pew Charitable Trusts • The Stunning Fall of Generation X,Business Insider • The Gen X Files blog

25. XERS CLICK HERE to access the Interactive Download on Xers • Downloadin One • Share or save this Download All data are from the 2014 U.S. Yankelovich MONITOR, unless otherwise noted