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For financial institutions aiming to build lasting customer relationships, understanding how different generations approach money matters isn’t just interesting—it’s a strategic imperative. Our latest comprehensive research study reveals fascinating insights into how different generations navigate their financial journeys, how their opinions differ from the older generations, and what this means for banks and financial service providers.
Today we’re going to focus on GenZ and Millennials…
An ambitious generation, despite adversity
Our research paints a clear picture: the financial challenges faced by the younger generations are unprecedented in recent history. Nearly 60% of Gen Z and Millennials worry about their finances, compared to just 37% of Boomers. This isn’t surprising when we consider that 57% of younger generations don’t own homes, a major source of financial stability. More than that, 35% of those who don’t own a home have given up on saving for one entirely, viewing it as an unachievable goal.
But what’s remarkable isn’t just the struggle – it’s the response.
Consider these findings:
- 92% of Gen Z and 83% of Millennials are actively interested in improving their financial literacy
- 68% of Gen Z and 67% of Millennials are willing to work multiple jobs or side gigs to achieve their financial goals
- 65% of Gen Z and 60% of Millennials believe they need to work for themselves to achieve true financial freedom
What we’re witnessing is a generation driven by both necessity and ambition. Shaped by teenage years and young adulthood equally impacted by economic uncertainty, housing crises, and technological opportunities, they’re carving new paths toward financial stability. And these paths are often very different from those taken by their parents and grandparents.
Risk-takers by choice and necessity
Financial caution was once considered a virtue. Today, younger generations recognize that playing it safe may not be enough:
- 60% of Gen Z and 50% of Millennials are willing to take financial risks to increase their wealth
- They’re than Boomers to make significant purchases regardless of price tag
- Their entrepreneurial spirit is driving innovation in side hustles, gig work, and startup ventures
One American Gen Z male participant summed it up perfectly: “The only way to be free is to work for yourself. Make your money working for yourself, not taking a salary from someone else to work. That’s why I’m going to work hard and run my own thing.“
The knowledge gap: A critical opportunity
However, despite their hunger for financial education, younger generations face significant hurdles:
- 34% of Gen Z and 33% of Millennials struggle with understanding financial language
- 34% of Gen Z and 25% of Millennials find it difficult to process the mathematics of financial decisions
Surprisingly, despite their digital native status, 21% of Gen Z and 20% of Millennials report struggling to use technology to manage their money effectively. This challenges the assumption that digital banking solutions automatically meet their needs.
The inheritance dilemma: A generation in waiting
Perhaps most telling is how these generations view their financial futures. When traditional routes to financial stability, like home ownership, seem increasingly out of reach, many expect they will have to wait for their parents or grandparents to die before they can begin to generate wealth for themselves. From our research, we have found that approximately one-quarter of younger people believe inheritance is their only path to generating wealth.
As one Gen Z participant in our study put it: “Inheritance is the only way I can see out of this, so that I can afford a house. But you can’t plan for that, and it’s something you can’t talk about at the dinner table!“
Bridging the generation gap
Our research reveals that despite assumptions about generational differences, there are striking similarities in what people want from financial service providers:
- 65% of Gen Z and 64% of Millennials still consider having a physical bank branch important
- All generations want a multi-channel approach to financial advice, with a mix of digital and human touchpoints
- Discounts, cashback, and rewards rank as the top offering desired across Gen Z, Millennials, and Gen X
What financial institutions can do to help Gen Z and Millennials
Our findings point to clear opportunities for banks and financial service providers:
1. Speak their language
Financial jargon creates barriers. Simplify communication and create educational content that builds understanding gradually.
2. Recognise the parental influence
Parents remain the most influential source of financial information for Gen Z. Consider how to equip Gen X parents with modern financial knowledge they can pass on.
3. Nurture entrepreneurial ambitions
Develop products and services that support side hustles, small business ventures, and alternative income streams.
4. Build true multi-channel experiences
Despite tech-savviness, younger generations value in-person conversations for major financial decisions. Create seamless experiences across digital and physical touchpoints.
5. Focus on practical education
Shift beyond basic budgeting advice to investing, property buying, and wealth-building strategies that feel accessible and achievable.
A matter of opportunity
The financial institutions that will thrive in the coming decades won’t be those that simply market to younger generations—they’ll be the ones that truly understand their unique challenges and aspirations.
As financial service providers look to capture the hearts and wallets of Gen Z and Millennials, our research suggests that empathy, education, and enablement will be the keys to success. These generations aren’t looking for financial products that simply maintain the status quo—they’re seeking partners that will help them rewrite the rules of financial success.
STRAT7 provides comprehensive generational research and market intelligence to help financial institutions develop products, services, and communication strategies that resonate with evolving consumer needs. Contact us to learn how our insights can transform your approach to different generations.
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