Generation Z consists of those born between 1995 and 2010.

This age group makes up a majority of your student population, now outnumbering Millennials on campus. 

According to the National Association for College Admission Counseling1, Gen Z are described as entrepreneurial, practical, and financially aware.

They are worried about paying for college and learning skills that will get them a job upon graduation.

They want real-life experiences that will help them be better employees and eventually work for themselves.

And just as importantly, they want to learn about financial matters, with 85% believing they should learn financial literacy in college.

Gen Z Financial Literacy Is Important

Gen Z will soon displace Boomers as the generation with the most buying power.

In fact, within a decade, they will have more buying power than Millennials and Boomers combined2.

However, Gen Z is not prepared.

There are few financial literacy classes aimed at Gen Z.

They're also dealing with ever-changing financial rules and products (think tax regulations and bitcoin) that few people in their lives comprehend.

Without financial literacy, Gen Z will find themselves unable to navigate the financial world.

A holistic financial wellness program for Gen Z needs to focus on their current needs, such as budgeting and financial aid, while providing information and insights into future needs such as investing and saving for retirement.

A recent TIAA study3, though looking at Gen Z in the workplace, found that those participating in financial wellness were twice as likely to have a high financial wellness rating than those who did not.

The same is expected for programs offered to students before they head out into the world.

What Gen Z Needs to Know

Gen Z is more financially savvy than their millennial counterparts.

One study4 found that two out of three Gen Z already had a bank account and one out of three have attended some kind of financial education class or seminar.

Though these numbers are nearly triple that of the preceding generation, Gen Z wants more.

In their short lives, they’ve already witnessed a housing bubble, a recession, inflation, and staggering student loan debt.

They have yet to face increasing college tuition, paying off student loans after graduation, affording their first home, or finding a job that will take care of them financially.

Because of what they’ve seen and what they know to be on the horizon, Gen Z wants financial literacy that touches on:

  • Money management skills: Eighty-four percent rely on parents and family for financial information, but their parents often do not understand finances well enough to teach them correct principles. Student financial wellness programs should focus on helping Gen Z learn about budgeting, saving, and investing so that they can make crucial financial decisions in the future.
  • Debt management: Gen Z is very debt hesitant. Though having too much debt is not wise, building credit is important. Gen Z needs help understanding how to take on manageable debt to build their credit score, how credit scores work, and why having a strong score is important.
  • Professional counseling: Gen Z is used to online, do-it-yourself activities, but having a financial professional for guidance can make the difference between making strong financial choices and poor ones. A strong financial wellness program for students can help Gen Z understand how professionals can help them with difficult or more advanced financial decisions.

Communicating Your Plan to Gen Z

In addition to offering a financial wellness benefit to your Gen Z student population, you need to be sure that you are communicating your plan to them – and doing so in a way that meets their needs. 

Here are some things to keep in mind:

  • Gen Z students do not like automated email messages, even those personalized with a first name. Whenever possible, they prefer to hear from a real student about their real experiences with financial wellness.
  • Gen Z wants to be involved in interactive communication rather than one-way communication. Instead of merely prompting a student to take action (sign up, click a button, take a survey), Gen Z wants the communication to evolve based on their engagement.
  • Gen Z wants communication to be relevant to where they are now, not where they were when they entered your institution. Communications should be based on current data, like current financial concerns, of the student.

When you are able to provide financial wellness and communicate its existence, your Gen Z students will develop healthy financial habits.

Doing so will increase grade point averages and graduation rates, decrease dropped classes, and improve mental health across your student population.

To learn how iGrad can help you offer a holistic financial wellness program to your students, schedule a demo with us today. 

 

1 - https://www.nacacnet.org/news--publications/journal-of-college-admission/instant-generation/

2 - https://www.publicissapient.com/insights/generation-z-is-coming-and-fast 

3 - https://www.tiaa.org/public/pdf/2022_financial_wellness_survey_final_results.pdf 

4 - https://www.raddon.com/sites/default/files/genz-executive-summary.pdf