It doesn’t help that this generation, born between 1997 and 2012, is already trying to make sense of one of the toughest financial climates in decades. Rising costs and unpredictable job markets are enough to test even the savviest young adults.
What Gen Z needs now are financial literacy tools that make learning real and relevant. That starts with the adults, educators, and platforms in their lives meeting them where they are.
Key Points
- Social media and digital tools influence Gen Z’s financial literacy and behavior, but not always in productive ways. These platforms can promote impulsive behavior and spread misinformation.
- Foundational money skills like budgeting and understanding credit are essential and still widely under-taught.
- Parents and educators play a key role by normalizing money conversations and introducing real-world financial tools early.
The State of Gen Z Financial Literacy
Compared to other generations, Gen Z is facing more financial pressure with less financial literacy.
The numbers tell part of the story. In a national financial literacy index, baby boomers answered 55% of questions correctly, while Gen Z scored 38%. That gap matters, particularly in the face of significant economic headwinds—rising tuition, a shifting job market, and the lasting impact of inflation.
There are encouraging signs, though. Gen Z is the generation most likely to have taken a personal finance course in high school, according to research from Petersen Hastings. Intuit’s state-by-state analysis supports that trend, showing that stronger financial education access correlates with higher literacy rates nationwide.
Once in college, though, many students lose that exposure. Courses on budgeting or credit are rarely required unless they’re tied to a specific major. Instead, many Gen Zers turn to social media for financial advice, which can be helpful but introduces the risk of misinformation. A Gallup poll found that 42% of US adults ages 18 to 29 get financial information from social media, compared with just 27% who rely on traditional financial advisors.
But this isn’t just about knowledge. It’s also about stress. According to Credit Karma, roughly 43% of Gen Z say they’ve experienced “money dysmorphia,” meaning they feel insecure about their finances even when they’re doing relatively well.
Even so, Gen Z’s curiosity and drive stand out. According to an Intuit survey of high school students, 85% say they want to learn about financial topics in school.
Why Gen Z Faces Unique Financial Challenges
Money management is only part of the challenge for Gen Z. They’re trying to build financial stability in a system that wasn’t designed with them in mind.
College costs have soared, with the average student loan borrower graduating with over $39,000 in debt. Meanwhile, entry-level wages haven’t kept pace with inflation, leaving 57% of Gen Zers taking on side hustles to make ends meet. Add in rising living costs like rent and health care, and an unpredictable economy, and it’s no wonder so many feel financially stuck before they’ve even started.
Gen Z is also the first to grow up fully online. Financial literacy for many college students comes not from classrooms but from TikTok feeds and YouTube Shorts. Social media can promote smart habits, but it can also promote misinformation. It can fuel impulsive spending and unrealistic money expectations as well.
While they may be digitally savvy, Gen Z remains financially underserved. Almost half (45%) of Gen Zers don’t receive formal financial education until adulthood. Without support from parents or other community members early on, they’re often left to figure it all out on their own. And that opens the door for unhealthy financial habits to take root.
Core Money Skills Gen Z Needs to Master
Building financial confidence takes a strong foundation. These core money skills help Gen Z handle today’s expenses while preparing for the challenges and opportunities ahead.
Budgeting and Cash Flow Awareness
Knowing where your money goes each month is step one. The right tools (like budgeting apps) make it easy to track spending and build discipline without feeling restricted or overwhelmed.
It’s easy to start a budget. List out the money you make every month and calculate your expenses. You may be surprised to find out where your money is actually going.
Credit Building and Debt Management
Credit scores can seem mysterious, but they influence everything from renting an apartment to buying a car. Learning how to build healthy credit and manage debt early is key.
Apps like Credit Karma can help by enabling you to check your credit score for free and provide a library of resources on how to manage your money and score.
Saving and Investing Early
Setting money aside for big goals, such as vacations and home purchases, is great. Investing for the long term is even smarter. Teaching compound interest and consistent investing (even in small amounts) gives Gen Z the tools to grow wealth.
Navigating Student Loans
Student loans are often Gen Z’s first major financial commitment (and one of the least understood). They need guidance on repayment plans and how to avoid common pitfalls.
With the right education and tools, these skills can help Gen Z shift its mindset from merely surviving to thriving.
How Parents and Educators Can Support Gen Z
Gen Z is ready to learn, but they need adults who will model and talk openly about healthy money habits. Here’s how to make that happen.
Talk About Money—Out Loud
One of the most powerful things parents and educators can do to improve Gen Z’s financial literacy is to focus on having the right conversations about money. That means discussing budgets and bills in a way that helps build a positive relationship with money.
It’s also important to let your kids and students know you’re not perfect. Don’t be afraid to share your own mistakes. Admitting past money mistakes shows students that learning is ongoing. Transparency matters more than perfection.
Introduce Hands-On Skills Early
It’s one thing to talk about saving. It’s another to show how it works. Encourage students to build a basic budget, calculate credit card interest, or explore how taxes affect their paycheck. These real-life exercises stick and build confidence fast.
Use Tools That Meet Them Where They Are
Programs like Intuit for Education bring financial literacy to life through free, classroom-ready simulations. Students use real-world tools like TurboTax, Credit Karma, and other financial literacy resources to tackle real-world scenarios.
Make Financial Literacy Part of Everyday Learning
Even small moments matter, like discussing the cost of groceries or how to compare bank accounts. It helps students view money skills as part of daily life, rather than just a school subject.
Parents and educators don’t have to be experts. They just have to be willing to engage. That’s how financial confidence starts.
Building a Financially Confident Generation
Gen Z has what it takes to manage money. They just need guidance and tools to make financial learning feel relevant and real. The knowledge gap may be wide, but it’s also an incredible opportunity.
With support from trusted platforms and the adults in their lives (parents and teachers), Gen Z can grow into the most financially confident generation yet. It’s up to us to help them start now. The future is theirs. Let’s help them own it.
At Intuit, we’re here to make that path easier. Through Intuit for Education and college financial literacy programs, we bring real-world financial tools like TurboTax, QuickBooks, and Credit Karma into classrooms and homes at no cost.
Get started today to help the Gen Zer in your life grow their financial knowledge. Everyone deserves a shot at prosperity, no matter their ZIP code.
FAQs
What resources are available for Gen Z to learn about their finances?
Gen Z can tap into a growing number of free, digital-first tools designed to teach personal finance in real-world ways. Intuit for Education offers simulations using tools like TurboTax and QuickBooks to help students build money skills early. Many also learn through podcasts, video content, and social platforms, though guidance from parents and educators is key to sorting fact from fiction.
What are common financial challenges faced by Gen Z?
Many Gen Zers are juggling rising student debt and high living costs with limited access to financial education. They’re also influenced by social media-driven spending habits and face pressure to “keep up” financially with peers. Despite these challenges, Gen Z is eager to learn and take control of their financial future.
Why is Gen Z having financial literacy issues compared to other generations?
Gen Z grew up in a digital world where money often feels abstract, spent with a tap instead of a dollar bill. Many enter adulthood with little formal education about budgeting, credit, or loans. This lack of early, structured guidance has left gaps in knowledge, but it’s a gap they’re motivated to close.
Which generation has been the most financially responsible?
Financial responsibility looks different across generations, but baby boomers and Gen X typically score highest on financial literacy tests. But Gen Z, with earlier access to the right tools, education, and support, has the potential to surpass them. It’s not about who’s ahead today. It’s about who’s most prepared for tomorrow.