How to improve financial literacy for Gen Z: Survey finds half of Gen Z lack financial literacy: Struggling with crypto, inflation & budgeting – here’s how to improve
Generation Z Struggles with Financial Literacy: Cryptocurrency, Inflation, and Basic Money Skills
Experts warn that financial literacy is crucial for Generation Z, especially in an environment where costs are rising and programs like Social Security face uncertainty, according to a USA Today report. By 2022, 17 states will now require high school students to complete at least one semester of a personal finance course before graduating, according to the nonprofit Next Gen Personal Finance, USA Today reported.
“Every teenager deserves to know not just how money works, but how money works for them,” said Mindy Bingham, author of Lifestyle Math. “That’s what changes behavior – not just vocabulary or worksheets, but real numbers tied to their own lives.” As stated in the report.
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How Internships Can Teach Financial Literacy to Generation Z
Programs like Capital One’s Café Ambassador internship give students real-world experience in money management, according to a USA Today report. High school seniors from underserved communities can work at Capital One’s part bank, part coffee shop, learning financial literacy, budgeting and customer service, according to the report.
Calique Barnes, who participated in the program as a high school student, stated that this changed her perspective on money, as reported by USA Today, and said, “There was no such thing as money management in my family and community. We did not know about credit or debt. I learned all of these. I can also teach my children, family, and friends how to manage money and how to prepare themselves for the long term.” ALSO READ: Experts reveal alarming discovery behind rapid rise of colorectal cancer in young people
Adapting the 50/30/20 Budget Rule to Personal Goals
Barnes, now a freshman at Morehouse College, even gives her mother advice on financial decisions and said she, too, has adapted the 50/30/20 budgeting rule to fit her own needs. The 50/30/20 rule is that people should budget 50% of their money for necessities, 30% for necessities like fun and entertainment, and 20% for savings and debt repayment, but “I made it 50/20/30 so I could save a little more for college,” he said, as quoted in the report.
Hands-On Learning Through Financial Literacy Programs
Intuit for Education is another initiative aimed at improving financial literacy, and the program hopes to reach 50 million students by 2030 by offering free online curriculum and tools for high school and college students, according to a USA Today report.
According to the report, the Intuit Food Truck Program provides food trucks or mobile carts, culinary training, enterprise grants and financial management tools to students in underserved communities.
According to USA Today, Dave Zasada, vice president of Intuit for Education, said that since 2023, approximately 10,000 students have participated in cities such as Los Angeles, Dallas, Denver, Lynchburg, Nashville, Reno and San Diego, and an additional 10,000 students are expected this year as the program expands to Atlanta, Fort Lauderdale and Milwaukee.
Students gain hands-on experience running a business by using QuickBooks to track sales, budgeting, pricing, inventory and marketing, according to the report. They also develop critical soft skills, including leadership, communication, teamwork and problem solving, according to USA Today.
The program also encourages giving back, and this holiday season, students operating food trucks are helping serve nearly 400 free meals per stop, reaching more than 3,500 people nationwide, USA Today reported.
“Students see firsthand how financial literacy expands opportunity when they create budgets, manage inventory, and make business decisions that directly impact their success,” said Dave Zasada, vice president of Intuit for Education. “It’s not just about learning to balance a budget, it’s about building the confidence to turn their ideas into reality, as conveyed in the report.”
FAQ
Why do so many Gen Zers struggle with money?
Many young adults lack education on finance, cryptocurrency, inflation and basic budgeting.
What is the 50/30/20 budgeting rule?
He recommends allocating 50 percent to needs, 30 percent to needs, and 20 percent to savings and debt.
