Did you know that Gen Z is set to become the wealthiest generation? The thing is, though — they just might not know what to do with it. While their spending is on track to reach $12 trillion by 2030, Zoomers are apparently the least financially confident generation. The same goes for Millennials, with over half associating money management with feelings of anxiousness, and even seeking professional support for these financial worries.
To understand this more, we surveyed 1,000 Americans aged 18-43 (Gen Z and Millennials) about their current financial challenges, and what they want to achieve in the next five years.
Young Americans don’t feel good about their money:
- Financial illiteracy is on the rise: Less than 1 in 4 respondents felt fully financially literate, with 83% agreeing that they don’t have a strong understanding of their personal financial management. When asked about how they wanted to feel about their finances in the next five years, 63% said financial confidence and independence were at the top of their lists.
- Willing to turn to AI financial tools for help: 74% of respondents are open to using AI-powered financial tools to help with their financial concerns and challenges. On top of that, almost 40% agree that it is important to have access to financial tools that address the specific needs of your age group.
- Totally drowning in everyday costs: Almost half (43%) of respondents don’t feel in control of their day-to-day spending, with almost 10% describing this as “totally drowning”. When asked about emergency funds, over 1 in 3 respondents had less than a month’s worth of expenses saved, with 1 in 2 having less than 3-6 months.
- Procrastination, but make it financial: 40% of respondents check their bank accounts twice a week to weekly, with 20% noting that they don’t even know how much money is currently in there. A key reason for this could be apprehension, with a whopping 66% noting that they feel anxious when checking their bank account.
- How does one save in this economy?! When asked what their biggest financial concern or challenge was, almost 50% of respondents expressed concern over saving in this economy, followed by trying to dig themselves out of debt (22%), and the cost of food and transportation (14%).
Methodology: Our findings are from 1000 Americans aged 18 to 43 surveyed in September 2024.
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Big love. Cleo 💙