Generation Z were born after 1995 as the first generation to grow up with computers, smartphones, and the Internet. Millennials have remained in the spotlight for some time, but with the oldest of Gen Z are now reaching college age, paying attention to them, how they think about money, and their financial literacy is a crucial step for financial institutions wishing to make connections with Gen Z later in life.
Many of Gen Z-ers came to age during the recession and housing bubble burst, see millennials struggling with college and other financial debt, and are increasingly aware of their finances and their need for financial literacy. As a result, a study by Raddon found that 2/3 of a group of 2,500 teens had already opened a bank account and were as much as 3x more likely to have taken a financial education class than millennials. But, while they may be more financially savvy than many millennials, many also faced stress related to college savings, getting a job, renting an apartment, buying a home, and paying off debt after college.
Money Management Skills
Most Gen Z-ers are concerned about financial literacy but at the same time, 84% rely on parents and family for financial information. This is challenging considering that many parents grew up with different financial information, less sophisticated options relating to savings, retirement, mortgage, and loans, and often don’t fully understand the options themselves.
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