Is Gen Z financially literate?
Lack of Basic Financial Knowledge: A survey conducted by the Financial Industry Regulatory Authority (FINRA) found that merely 24% of Gen Z respondents could correctly answer four out of five basic financial literacy questions.
However, among all of the generations, it's Gen Z that is proven to have the lowest financial literacy levels.
They are generally more pragmatic, with both complicated idealism and worries for the future. Gen Zers dream of personal career fulfillment but expect economic struggles. They have less positive life outlooks, with lower levels of emotional and social well-being than older generations.
More than half, or 53%, of Gen Zers say higher costs are a barrier to their financial success, according to a separate survey from Bank of America. In addition to soaring food and housing expenses, millennials and Gen Z face other financial challenges their parents did not as young adults.
Gen Z is spending more than millennials on housing and insurance. Gen Z has more debt than millennials did, even after accounting for inflation and higher incomes. Roughly 1 in 7 Gen Zers are maxed out on their credit cards, more than any other generation.
Millennials Are The Most Likely Of All Generations To Experience Financial Hardships And Money Troubles, According To Survey Recent research by Edward Jones cast a spotlight on the financial vulnerabilities millennials face.
Generation Z students are on track to become the most educated generation. They have higher high school graduation rates and lower dropout rates than those who came before. In 2018, 57% of 18 to 21-year olds were in college, compared with 52% of Millennials, and 43% of Gen Xers at similar ages.
The low proficiency in financial literacy among Gen Z, as evidenced by only 24% of respondents being able to answer basic financial questions correctly in the FINRA survey, points to an urgent need for comprehensive financial education efforts aimed at young people.
Growing up in the wake of the 2008 global financial crisis and experiencing its effects on their families set Gen Z up to be financially conservative, with many naming money as their top source of stress.
From the housing market's affordability crisis to record-breaking student debt, Gen Z and millennials have not been given an easy foray into adult financial life, and dreaming about being rich may arise based on that, according to Lindsay Bryan-Podvin, a financial therapist and the founder of Mind Money Balance.
What is Gen Z struggling with the most?
Gen Z faces chronic stress from many factors impacting their environment, including gun violence, harassment and abuse, the worry of financial instability, politics and even social media.
The Gen X debt situation
The cohort also has the largest share of people with debt, nearly 99% carry some type of balance, LendingTree found. Gen Xers led the way in three of the four categories analyzed. The group — between 44 and 59 years old — has the highest median credit card, auto loan and student loan balances.

She says Gen Z faces more challenges in some ways than previous generations. “There's a growth in inequality in the transition to adulthood. There's a lot of changes in culture and norms, insecurity more generally, in terms of climate change and the war and school shootings and rapid inflation.
76% of millennials are not financially literate
It's an easy argument to make that the lack of financial literacy leads to poor financial habits and decisions. Many of us neglect to put the time and effort into improving our financial literacy, yet spend hours in other categories.
SILENT GENERATION (1954 and Earlier)
Because they largely grew up with little money and needed to stretch their dollar when they could, the Silent Generation is quite frugal and emphasizes the importance of saving.
Millennials saved more than any other generation in 2023. Here's how the other generations stack up. No matter your age, you're probably saving for at least one milestone — whether it's buying your first car, starting a family, buying a home, or funding your golden years.
Gen Z, the generation born between the mid-1990s and the early 2010s, was especially likely to plan their resignation for the next year, with 39 percent saying they planned to quit their jobs this year. That was compared to just 25 percent of all workers.
Allianz's 2024 Global Wealth Report finds boomers are the richest generation in history—and no one will come close to their savings.
Baby Boomers and Donation
These individuals make up a whopping 43 percent of charitable giving! Baby boomers make up most of the population in the US and are at a life stage where donating is typically easily affordable. On average, a single baby boomer supports about five different charities.
Interpersonal communication skills
Gen Z is the first to admit it. Many acknowledge their lack of interpersonal communication skills needed in the workplace.
What is the smartest generation?
As societal trends continue to evolve, the narrative surrounding generational intelligence unfolds with fresh perspectives. A growing discourse suggests that Generation Z (Gen Z) is endowed with higher cognitive abilities compared to their predecessors, the Millennials.
Gen Z will never know the joy of buying a new CD and throwing it into your player. Instead, they grew up with iPods and phones that let them carry thousands of songs in their pocket.
Gen Z continue to struggle with building savings and contributing to their retirement. Over half (57%) of respondents do not have enough emergency savings to cover three months of expenses. Nearly one-third (30%) feel they don't make enough money to save.
Generation Z adults—individuals who are between 18 and 25 years old—prove to be more financially sophisticated than any previous generation was at their age, according to The 2022 Investopedia Financial Literacy Survey. But they also have the most to learn.
By most measurements, Gen X is deeper in debt than other generations. Members of Gen X — born roughly from 1965 to 1980 — have the highest average debt stemming from student loans, credit cards and more.