Generation Z focuses on finances as they emerge from the pandemic

The adult members of Gen Z, a group raised in the world of the internet and social media applications, are more focused on saving and gaining financial literacy after the pandemic.

That’s the conclusion of a Bank of America Corp. survey that found that 70% of the group added to their savings last year, while 26% contributed to a retirement account and 26% invested in the market.

Despite the challenges brought on by the pandemic, more than two-thirds of those surveyed between the ages of 18 and 24 remain optimistic about their financial future.

“This generation motivates themselves and adopts financial behaviors that prepare them for a positive future”Christine Channels, Bank of America’s head of community banking and customer protection, said in an interview. The group is also more likely to talk about finances and “be honest about what you know or don’t know”.

Gen Z men and women sought financial education despite lack of access in their schools and communities during their childhood and adolescence, survey results show.

A third of the surveyed population rate their financial literacy as low, and 40% of that group say they don’t know where to start learning about finance and were never offered a course at school. Most say they learned about finances at home or from their family.

The generation born from 1997 to 2012 has been shaped by major events like the coronavirus pandemic, as well as technological advancements, including the rise of social media apps like Instagram and Snapchat.

They know basic financial concepts, including saving and budgeting, but not so much about financial readiness, such as investing, saving for retirement and buying a home, study results show.

Gen Z women feel they know more about building credit, but are also more likely to mention debt as a barrier to financial success compared to men.