Not all generations are the same and Gen Z is no exception. More than any previous generation they are wary of taking on student debt and question the return on investment of a college degree. Nearly 73% of Gen Z report that the economic climate makes it challenging to save, and more than half lack sufficient savings to cover three months of expenses. As a result, many are pursuing side hustles to supplement their primary income.  

In a recent webinar hosted by EVERFI, Dr. Corey Seemiller, a professor at Wright State University and expert on Gen Z, and EVERFI’s Senior Director of Research & Evaluation, Dr. Dan Zapp, explored the core values that shape Gen Z’s mindset and approach when it comes to personal finance. During the webinar, Dr. Seemiller provided insights into the values and perspectives shaping how teens approach personal finance, drawing from her extensive research on this generation while Dr. Zapp presented proprietary research on the banking habits of teenagers and how EVERFI’s courses are strategically designed to engage students and empower them with essential financial literacy skills.  

Defining Characteristics of Gen Z
Through her research, Dr. Seemiller has found that Gen Z values loyalty, responsibility, and compassion. They are also the most diverse generation in history, bringing an inclusive mindset that shapes their social and financial behaviors. Seven formative experiences have significantly impacted them, including technological growth, the Great Recession, heightened safety concerns, social justice movements, the COVID-19 pandemic, environmental issues, and political divide. These experiences have fostered a generation that deeply values social impact and advocates for a fairer world. 

Economic Challenges for Gen Z
With regard to higher education, Gen Z has some of the highest student debt balances while also struggling to see the value or return on investment of their four-year degree. To make matters worse, they are also struggling to find well-paying jobs that provide enough income to survive. More than half don’t have enough savings to cover three months of expenses, and many are looking for ways to supplement their primary source of income.  

Another unique challenge Gen Z is facing is that median rent has increased 20% in the last 20 years, while median income has only increased 2%. Inflation is high, making it harder to save for financial goals and pay down debt or college loans, creating more financial stress. Interest rates are also high, making it harder to get affordable loans for cars and mortgages. Additionally, 73% of this age group say that the economic environment has made it harder for them to save. 

Financial Habits and Influences of Gen Z
Many of these defining characteristics and economic challenges have led to Gen Z being more debt-averse, often opting to avoid credit cards and substantial loans. While financial stability is important, Gen Z prefers jobs that provide “enough” rather than excessive wealth, showing a pragmatic approach to money. Additionally, many are entrepreneurial and are drawn to freelance or gig work as an alternative to traditional employment, embracing passive income opportunities and non-traditional career paths. 

Gen Z’s primary career motivation is impact. While they have a resourceful and entrepreneurial spirit, they want to work in roles that align with their values and contribute positively to society. Their “DIY” mentality helps them navigate financial challenges creatively, and they rely on strong social connections to stay informed. They are a loyal generation, ready to stay with companies that align with their values, and they are known for their commitment to positive change. 

How to Equip Gen Z for Long-Term Financial Success
For financial institutions looking to engage Gen Z, building trust is key. This group seeks out accessible financial tools with customizable features to help them set savings goals and track spending insights. While Gen Z faces significant challenges, they are a resilient group that need help debunking the scarcity mentality and better managing their money. Employers should consider Gen Z’s desire for impact and transparency, offering opportunities that highlight the social contribution of their work. This generation values loyalty and expects reciprocity – demonstrating genuine concern for their well-being can foster long-term commitment. 

How EVERFI Can Help
Both Dr. Seemiller and Dr. Zapp offered valuable insights into the mindset of a generation that is redefining traditional financial paths and prioritizing meaningful work and social impact in unprecedented ways. Now, more than ever, it’s critical to equip adolescent students with the financial skills they need to navigate the world. 

Learn how your financial institution can sponsor financial literacy courses that resonate with and engage Gen Z. Click here to listen to the full webinar, “Unlocking Gen Z’s Financial Mindset.”