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How can young adults build long term wealth even as housing becomes harder to afford, what policies could help make housing more attainable, and how can understanding other investing options give them optimism about their financial future?
Read the FT article and then answer the questions below.
The housing crisis is pushing Gen Z into crypto and economic nihilism
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What economic problem does the article identify as the main force shaping Gen Z’s financial behaviour, and why is this problem especially relevant to young adults today?
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According to the research cited, what three behaviours are more common among young adults who believe home ownership is unrealistic?
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Why do young adults who believe home ownership is still possible tend to behave differently?
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How are incentives and opportunity cost shown in the article in ways that change people’s behaviour as housing affordability changes?
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Imagine you are designing a policy to improve housing affordability. Based on the article, what type of policy would most directly influence young adults’ incentives to save and work? Explain why
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The article mentions the need for greater financial literacy for young adults facing a challenging housing market. What specific financial skills will be most important for students who still hope to become future homeowners?
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Explain why many young adults feel discouraged about saving for a home, and then give and explain three specific policy changes that could increase housing supply and make home ownership more attainable
Joel Miller and James Redelsheimer, Foundation for Economic Education.
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