![]() The research also explored the role of race, ethnicity and gender in access to financial education and opportunities, uncovering: Black/African American Gen Z more likely to be financially independent, cite starting a business in their definition of success Most learned at home or from their family (75%), while 39% were self-taught, 20% learned from friends and peers and 13% from a financial professional. When asked where they learned about finances, only 33% said in school (K-12 and/or college).However, their knowledge levels decrease significantly when it comes to topics that can be critical to a more secure financial future, including saving for retirement (38%), investing (30%) and buying a home (26%). Much of Gen Z feels knowledgeable about basic financial concepts – including saving (85%), managing money (82%) and budgeting (77%).A significant portion of Gen Z (40%) also say they were never offered a financial education course in school. One-third (34%) of Gen Z rate their financial knowledge as low, among whom 40% say they don’t even know where to start learning about finances.When asked about the most stressful financial aspects of their lives, Gen Z cites not being able to afford the life they want (37%), lack of emergency savings (33%), student loan debt (22%), health care costs (17%) and simply making it to their next paycheck (11%). Today, Gen Z views their greatest barriers to financial success as insufficient income to achieve financial goals (46%), lack of job stability (23%) and being unable to save (21%). ![]() Among the half still fully (14%) or mostly (36%) dependent on their parents financially, 24% are prioritizing becoming financially independent. Half (49%) describe themselves as fully or mostly financially independent.Nearly 70% also say the pandemic influenced their financial priorities, including a greater focus on saving for future goals (33%) and living a more frugal lifestyle (19%). Despite financial and other pandemic-related challenges, 68% remain optimistic about their financial future.Among which, 70% added to savings, 29% mapped out financial goals, 26% contributed to a retirement account, and 26% invested in the market. Over the past year, 80% of Gen Zers have taken one or more positive financial actions.Through our Better Money Habits platform, we’re committed to connecting these young adults to a wide range of resources and guidance to help them develop financial know-how, and navigate barriers to achieving their goals.” “At the same time, an unmistakable need for more financial education persists among this generation. “As Gen Z gets started financially and professionally, we see a great deal of motivation and positive steps toward building a solid financial foundation,” said Christine Channels, Head of Community Banking and Client Protection at Bank of America. This is according to new research published today by Bank of America’s Better Money Habits exploring what this generation (ages 18 to 24) view as their greatest financial barriers, and how they are taking charge of their financial lives. Gen Z is emerging from the pandemic with a greater focus on saving, financial independence, gathering life experiences, and seeking financial education many were without access to in their schools and communities growing up. ![]()
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