June 3, 2023

Why Gen Z Should Care About Financial Literacy

If you’re part of Generation Z (born between 1997 and 2012), you’re at an incredibly exciting phase in your life. You’re studying, working, or possibly starting your own business, but there’s one subject that might not be getting enough attention: financial literacy. Now, before you click away, stick with me for a minute. You’ll find out why financial literacy is not just for Wall Street moguls or your Accounting 101 professor, but it’s something that YOU should care about.

Financial Literacy: What is it?

Financial literacy refers to the understanding of various financial areas including managing personal finances, money, investing, and taxes. It’s the knowledge necessary to make financially responsible decisions—decisions that are integral to our everyday lives.

Why Should Gen Z Care?

1. Early Habits Shape Your Future

The habits you develop now, including those related to money, can have a significant impact on your future. Understanding how to manage your money, make sound investments, and save for the future can provide financial security and reduce stress in life.

2. Student Loans and Debt

Many of Gen Z will graduate with student loan debt. It’s critical to understand the long-term impact of loans and how to manage them effectively. Financial literacy can help prevent crippling debt and set you up for success.

3. Navigating Economic Uncertainty

Growing up during the Great Recession and living through the COVID-19 pandemic, Gen Z has seen the impact of economic uncertainty. Financial literacy offers the skills to navigate these challenges, ensuring you’re prepared for future economic fluctuations.

4. The Power to Shape the Economy

As consumers, Generation Z has enormous power to shape the economy. By making informed decisions about what and where to spend your money, you can influence market trends and contribute to a more sustainable world.

How Can Gen Z Improve Financial Literacy?

The good news is that it’s never too early or too late to improve your financial literacy. Here are some starting points:

1. Educate Yourself: Read books, attend workshops, take online courses, or listen to podcasts about personal finance. There’s a wealth of knowledge out there!
2. Use Financial Tools: Make use of budgeting apps and tools. They can simplify the process of tracking expenses, saving, and investing.
3. Ask for Help: Don’t hesitate to seek advice from a financial advisor or a financially savvy friend or family member.
4. Practice: Like any new skill, the more you practice managing your money, the better you’ll get at it.

Financial literacy might not seem that exciting, but its impact on your life is far-reaching. It’s about more than just being able to pay your bills on time. It’s about understanding where your money is going, how to save, how to invest, and how to make financial decisions that will set you up for long-term success. So, to my fellow Gen Z’ers, let’s start taking our financial future seriously, one dollar at a time.