Money / Financial Planning
Prostock-Studio / Getty Images/iStockphoto
As the pandemic reaches its tail end, Generation Z seems to be emerging better focused on finance and financial education, according to a new study from Bank of America’s financial education website, Better Money Habits.
See: Millennials and Gen Zers Are More Invested in the Stock Market Than Other Financial Assets, Including Crypto
Find: Millennials and Gen Z Want To Retire by 60 — One Expert Points Out Major Obstacles to Their Plans
The study showed that, in the past year, 80% of young adult members of Gen Z, a generation that spans people born from 1997 to 2012, have taken positive financial actions. These actions included:
- Adding to savings
- Mapping out financial goals
- Contributing to a retirement account
- Investing in the stock market
Many of these positive actions stemmed from a willingness to talk to others about finances and to seek out tools and resources to help. The study showed that 40% were never offered a financial education course in school and 39% say they were self-taught. Seventy-five percent of respondents said they also learned about money at home from their family, which may have given them a jumpstart compared to the generations before them. As a result, 68% remain optimistic about their financial future coming out of the pandemic, testament to their resiliency and willingness to study what they don’t know.
“Our study shows that Gen Z is a highly motivated generation of self-starters — they are breaking down barriers by speaking freely about finances, and they are actively seeking out financial education that many were without access to in their schools and communities,” said Christine Channels, Head of Community Banking and Client Protection at Bank of America.
“It’s encouraging to see the Gen Z generation so open to discussing finances,” she continued. “We found that Gen Z seeks out financial role models at far higher rates than older generations and are most likely to talk openly about money with family, friends and colleagues.”
A Gender Investing Gap Still Exists
In spite of this optimistic outlook and positive steps toward a better financial future on behalf of Gen Z, a gender investing gap still exists, the study found.
“The gender investing gap refers to the disparity between how much women typically invest compared to their male counterparts,” Channels said. “Our Better Money Habits survey found that older Gen Z women are less likely to feel knowledgeable about investing and to have invested in the market over the last year, compared to Gen Z men. Investing is an important way to build financial security as it provides a path to growing …….