Gen Z Is Brilliant Online — So Why Are They Struggling With Basic Money Math?
If you've talked with younger generations lately, you may have noticed something interesting: Gen Z is smart, resourceful (side hustles), and often tech-savvy enough to build an online following before they've even opened a savings account. But when it comes to personal finance, the data shows a surprising — and important — gap.
In a recent survey of 2,000 Americans — between the ages of 18 and 27 — the report found that nearly half of Gen Z (46%) struggles to understand cryptocurrency, and 33% don't understand interest rates or inflation. The survey also found that 28% aren't clear on compound interest, with 22% struggling with credit scores, mortgages, or loans. And for the tip of the iceberg, 8% aren't sure how many cents are in a dollar, with some answers ranging from 10 to 50 to "it depends on inflation."
On one hand, it's easy to chuckle at the responses and numbers. On the other hand, it also highlights many issues facing the younger generation when it comes to school curriculum, and the ever-changing and fast paced environment that we now live in.
Gen Z is entering adulthood in a financial environment that's more complex, more digital, and more expensive than what earlier generations faced. Rising costs, uncertain benefits like Social Security, and a flood of online financial content mean they're trying to learn the rules of a game that keeps changing.
The good news? There's growing momentum to close the gap. Thirty states now require standalone personal-finance courses in high school — nearly double the number from just a few years ago. And according to USA Today, companies like Intuit are stepping in with free online tools designed to help 50 million students build real-world money skills by 2030.
For advisors, this is not only an education story — it's a relationship opportunity too. Younger generations don't lack intelligence; they lack context. They've grown up online, and are used to piecing information together from influencers, not experts.
While the use of AI continues to grow, younger generations will still need advisors, whether they realize it yet or not. As mentioned a few weeks ago, clients trust AI with pocket change — not their retirement.
Advisors who step in with judgment-free education, even in small doses, will win trust long before Gen Z accumulates serious assets. And by the time they do? They'll already know exactly who to turn to.
The financial literacy gap is clear. The question is who will show up to close it.
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