Wyandotte, MI (July 20, 2026) |
With its right-sized branch footprint, virtual tellers and early adoption of mobile banking platforms, Michigan Legacy Credit Union (MLCU), is in the vanguard of technology advances for a credit union of its size (22,250+ members) and is able to meet members where they are. Yet, MLCU President and CEO Carma Peters cautions that an overreliance on technology may be a contributing factor to findings that Gen Z is falling behind in financial literacy.
“Gen Z is the first generation to grow up in a cashless society, and I think there’s a price to pay for that. For starters, the mental math of counting out cash in a financial transaction is absent,” Peters said. “There can be less inclination to think about what’s behind the numbers – a foundation of financial literacy - when someone taps to pay.”
Peters also says the proliferation of easy Buy Now, Pay Later (BNPL) options can give users less of a sense of financial responsibility, which also impacts sound budgeting and financial literacy.
“Back in the day, the option of layaway was akin to buy now pay later, yet there was one huge distinction; you didn’t get the item you were purchasing over time until it was fully paid for,” Peters said. “Now, you can use services like Affirm or Klarna to pay for shopping in installments, like makeup, clothing, and purchases as low as $50 from retailers such as Target, so it makes it very easy to rack up bills, especially because you get the products instantaneously. Additionally, social media apps like TikTok and Instagram constantly present ads that are curated to an individual’s personal style and interests, creating temptation to buy something without considering where the purchase fits into your budget, if at all.”
And while fintech can be cool and easy, popular apps, including Venmo and Zelle, are not federally regulated or insured, unlike those offered through credit unions and banks. Nor are they the best for financial advice, expertise or budgeting.
Survey findings continue to make it clear that Gen Z believes it has lost ground over previous generations when it comes to money and wealth accumulation. Economic uncertainty, rising housing costs and student loan debt instead have Gen Z focused on the short term rather than becoming long-term wealth builders. But that doesn't have to be a self-fulfilling prophecy for those who take active steps to get educated. When a personal finance class isn’t taught in high school or college, young adults need to help secure their financial future through person-to-person contact. The first step is easy, according to Peters.
“Gen Z is strongly encouraged to establish a relationship with a financial institution. Credit unions and banks are well equipped to discuss basic financial information with their members and account holders and offer sound advice for saving, borrowing, and getting a credit card with the best interest rate,” Peters said. “Then, when key financial decisions like buying a vehicle or home, or deciding to engage a financial advisor arise, young adults have a trusted partner to inform their decision-making.”
Peters adds that lagging education on personal finance terms that guide financial decisions can be confusing and impact financial literacy.
“When young adults understand terms like credit score, interest rate, compounded interest, money markets and certificates of deposit (CDs), they are well on their way to being financially literate,” Peters said. “Whether it’s for saving, buying an automobile, home, clothing or a household item, financial literacy is critical to financial success.”
