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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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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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.
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.
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.
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