Generetion Z’s Thirst For Financial Literacy
As Generation Z gets ready to enter the maze of financial responsibility that comes with student loans, first mortgages, and more, they are desperate for knowledge.
According to a recent study by Experian, a consumer credit reporting company, three-quarters of young people who have recently graduated from high school regret that a personal finance course was not part of their formal education.
Moreover, an Experian survey of 18-19-year-olds found that young people are particularly eager to understand how best to save, how to file their taxes, and how to manage their finances.
Despite this thirst for knowledge, the Financial Industry Regulatory Authority has recently produced a report that evidences a decline in financial literacy among the US population over the past ten years, a decline that is most marked among 18-34-year-olds. As people tend to accrue debt very quickly when they are young, due to the costs of studying and student living, low financial literacy among the young can set them up for a lifetime of financial struggles.
Happily, 19 US states have incorporated financial studies into their education systems and require high school students to complete a personal finance course to graduate. The Council for Economic Education states that this number has grown by two since last year, but there is still more work to do.
Educating the young about finances will benefit them throughout their lives
A 2019 study by the Financial Literacy and Education Commission is unequivocal in its support for early education in finances. The study finds that college students who had completed high school personal finance classes maxed out credit cards less frequently than those who had not and also saved and paid off credit cards in higher numbers.
The importance of financial literacy among the young is even entering the mainstream with Ashton Kutcher producing a 10-part television series on millennials in Los Angeles and the financial difficulties they are facing. Called Going From Broke, will be available on Crackle from October 17 and is designed to teach the young how to take control of their finances.
The show is sure to find an audience with an Experian survey revealing that almost half (49%) of young people are interested in financial subjects and that 11% ‘love’ to learn about finances.