Gen Z financial anxiety offers major opportunities for financial institutions
- The pandemic has led to Gen Zers feeling nervous about their finances, and right now it’s mostly their family giving them the how-tos surrounding money.
- But financial institutions that can figure out how to swoop in early enough with financial literacy tools and guidance could get early access to trust among these consumers.
Pandemic-fueled financial fret is still alive and well among Gen Zers. A September survey by Capital One found that almost 40% of Gen Zers are feeling stressed about money as a result of the pandemic. Almost half said Covid has impacted the way they manage their finances.
Gen Zers are still showing a desire to learn more about finance, though. Almost 80% say they wished they learned about these topics in school.
That willingness continues to present an opportunity for financial service providers, according to a spokesperson for Capital One. Right now, 83% of Gen Zers say they’re taught about finance from family members living with them. Financial service providers that can step in most effectively as additional or alternative sources for financial knowledge could gain early trust with this rising generation of adults.
“This is an opportunity for financial institutions to think about the financial impacts of Gen-Z, who are now at the age where learning about finances is crucial to future success, and how their products and services can help Gen Z work toward financial well-being,” said the spokesperson.
Major financial institutions have been making sure they have products geared towards teaching kids and young adults about how to manage their finances, from Chase First Banking to Capital One’s Money Teen Checking.
“MONEY Teen Checking gives kids - and Gen Z - the tools and the resources to reinforce positive financial habits together with their parents,” said Peter Boyer, SVP of consumer banking at Capital One.