7 financial tips to prepare Gen Z for a better financial future

It’s Financial Literacy Month, and credit unions are looking for ways to promote financial education and improve the financial literacy of their members, especially among Gen Z.
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To help credit unions in this effort, we've gathered seven essential financial tips from Annamaria Lusardi, a renowned expert in financial literacy and a University Professor of Economics and Accountancy at the George Washington University School of Business. The tips are tailored for Gen Z, along with the reasons why credit unions should prioritize financial education for this demographic.

1. Dedicate time each week to your personal finances: It's important to set aside regular time to manage your personal finances, even if it's just 15 to 30 minutes per week. Just like exercising regularly, taking care of your finances requires consistent effort and attention.

2. Build a rainy-day fund: Having a buffer stock of savings for unexpected expenses, accidents, or other emergencies is crucial. Gen Z should prioritize building an emergency fund to be prepared for unexpected financial shocks.

3. Maintain a good credit score: A good credit score is like a financial GPA and can have a lasting impact on your financial well-being. Paying bills on time, avoiding maxing out credit cards, and being financially active early on can help build and maintain a good credit score. A higher credit score can also result in better interest rates, saving you money on interest payments in the long run.

4. Manage debt wisely: Many Gen Z individuals start their economic lives with debt, such as student loans. It's important to manage debt wisely and be aware of high interest rates associated with credit cards and other loans. Maintaining a good credit score is crucial to avoid higher interest rates on debt.

5. Learn to invest: Investing is a critical way to grow wealth over time. Gen Z should learn about diversification and pay attention to costs and fees associated with investing to make informed investment decisions.

6. Plan for the future: Gen Z should start planning for the future early, including retirement and other financial goals. Building a solid financial foundation early on can lead to a more secure financial future.

7. Take advantage of savings opportunities: Gen Z should take advantage of savings opportunities offered by employers and the government, such as 401(k) plans and tax-favored assets like traditional or Roth IRAs. These savings options can help accelerate the growth of savings and build wealth over time.

Why Gen Z? Three reasons
1. Timeliness and impact: Providing financial education to Gen Z during early adulthood can have a lasting impact on their financial well-being. Equipping them with financial knowledge and skills early on can help them make informed decisions, develop healthy financial habits, and avoid costly mistakes in the future.

2. Access to resources: Gen Z's digital fluency and familiarity with online platforms provide opportunities for engaging in financial education through online channels such as websites and social media. Leveraging these resources can help credit unions effectively deliver financial education to Gen Z members.

3. Demographics and viability: Credit unions need to prioritize Gen Z engagement for future viability. By providing financial education to younger members, credit unions can attract and retain Gen Z members, ensuring long-term sustainability as the average age of credit union members is higher than the general population's average age.

Three more reasons
If your credit union does not offer a financial education program that is designed specifically to educate younger members, April is an ideal time to get started.
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To celebrate National Financial Literacy Month, receive three bonus videos of your choice when you sign up for any It’s a Money Thing plan in April! Teach your members the value of money with It's a Money Thing. Don't miss out on this limited-time offer.

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