Getting social to improve Gen Z and Millennial financial literacy
There are many instances in life where it’s OK to learn from making mistakes, but – speaking from experience – credit and personal finance are not times you want to do that if it can be avoided. In fact, the importance of understanding credit and personal finance in today’s fast-paced financial landscape cannot be overstated. This knowledge is paramount for financial well-being.
As a financial services community, we have a responsibility to consumers who are looking to expand their understanding of important financial topics and improve their financial health. Yet, recent research shows personal finance knowledge gaps are leading to costly missteps for many Americans. In fact, a staggering three in five adults attribute their financial mistakes to a limited understanding of credit and personal finance.
This trend is particularly pronounced among younger generations, with Gen Zers and Millennials bearing the brunt of these errors. Among Gen Zers and Millennials, 71% and 70%, respectively, say their lack of knowledge about credit and personal finance has led to costly mistakes, with nearly a third of Gen Zers and over a third of Millennials reporting losses of $5,000 or more.
This reality underscores the need for enhanced financial education, particularly for younger consumers, and