Gen Z Beginning Financial Planning Earlier Than Previous Generations

According to a new survey from Corebridge Financial gauging sentiments about financial knowledge and expertise during National Financial Capability Month, roughly one in three respondents say they did not “get serious” about financial planning until after the age of 35. However, younger generations report they are starting their financial journeys earlier.

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Nearly half (49%) of baby boomers say they did not seriously start their financial planning until after they turned 35, and more than a third (35%) put off planning until they were 40 or older.

In contrast, 69% of millennials say they started seriously planning their finances before turning 35. Even more precocious is the youngest cohort: 73% of Gen Z report getting serious about their finances between 18 and 25 years old, with less than 20% saying they have not yet gotten serious about the topic.

“The best time to start planting the seeds for financial success is as early as possible, so it is great to see younger people getting a head start on financial planning. Establishing a foundation of financial awareness, literacy and skills early on can have huge impacts on individuals, families and society as a whole,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “At the same time, successfully managing your finances is a lifelong process, meaning there is always opportunity to build and sharpen those capabilities – whether that’s in the classroom, the home or the workplace – helping turn thoughts into actions and actions into outcomes.”

Education is key to financial confidence

Early financial education has a serious impact on how Americans feel about their financial capabilities. More than three in five (61%) never took a personal finance class at any level of school. Of those who identify as financial novices, an overwhelming 81% never studied personal finance in school. In contrast, more than half (53%) of self-identified experts took a personal finance course in college, and around one quarter (24%) took a personal finance course in high school.

Although older generations got a later start in their own financial planning, American parents are committed to helping the next generations learn early. Parents with children under 18 are teaching their kids about saving money (56%), the value of money (49%) and spending habits (42%).