5 Reasons Financial Education Is Failing Gen Z and Millennials
Despite growing up in an era of greater financial awareness, Gen Z and millennials still face major gaps in financial education. A recent study by Credit One Bank found that 45% of Gen Z and 50% of millennials didn’t receive formal financial education until adulthood.
That delay, combined with economic pressures and emotional stress tied to money, can mean younger generations are struggling to manage their finances effectively.
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Financial Education Comes Too Late
Most Americans start managing their own money between 18 and 24 years of age, but nearly half of Gen Z and millennials didn’t receive any kind of formal financial education until they were adults. That means critical early decisions like student loans, credit cards and budgeting were often made without guidance.
By the time financial literacy is introduced, bad habits may already be ingrained. Financial literacy among U.S. adults is low in general, according to the TIAA Institute-GFLEC Personal Finance Index, but it’s particularly low among Gen Z, with only 37% of the 2024 index questions answered correctly.
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Money Talks Focus on Stress Not Strategy
Gen Z is more open about finances than previous generations but that doesn’t mean those conversations are productive. The Credit One study found that 35% of Gen Z only discuss money during times of financial stress. That reactive approach makes it harder to plan long term, reinforcing anxiety rather than confidence.
Economic Pressures Outpace Financial Knowledge
Rising costs and wages that don’t necessarily keep up have created an uphill battle for younger generations. 33% of millennials feel financially worse off than their parents compared to just 19% of boomers. Current financial education doesn’t necessarily address the reality of high student loan debt, skyrocketing rent and unpredictable job markets, leaving many without viable solutions.
The Self-Taught Approach Falls Short
An Intuit Financial Education survey found that 95% of current U.S. high school students who learn about financial topics in school find it helpful, though only 7% of Gen Z and 9% of millennials actually learned financial skills in school.
A lot of millennials (52%) and Gen Z (67%) relied on their parents for financial education, while boomers were more likely to teach themselves. But learning from family isn’t always enough, especially when parents themselves lacked strong financial habits.
Anxiety Undermines Financial Confidence
The study also found that 59% of Gen Z and 51% of millennials experience financial stress or anxiety compared to just 29% of boomers. A strong financial education could provide the tools to manage stress and take control, but current systems aren’t doing enough to instill confidence.
Financial education isn’t just about knowing how to budget or invest — it’s about equipping people with the skills to navigate financial realities. And without gaps being addressed, these generations are likely to still struggle under the weight of economic pressures and uncertainty.
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This article originally appeared on GOBankingRates.com: 5 Reasons Financial Education Is Failing Gen Z and Millennials
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