Gen Z Has the Lowest Financial Literacy Levels — Experts Explain Why (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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e)&&("SpeechGrammarList"in e||"webkitSpeechGrammarList"in e)}}],d=0;d0){var n=e.speechResult.charAt(e.speechResult.length-1);"."!==n&&"?"!==n&&"。"!==n&&"?"!==n||(e.speechResult=e.speechResult.slice(0,-1))}},o.prototype.sendBeacon=function(n,t){var o=e.YAHOO.ULT||{},i=e.YAHOO.SB||{};if(o.beacon_click){var r={_S:i.config.i13n.spaceid,_I:i.config.i13n.pvid,actn:n,sec:"search",slk:t};e.YAHOO.ULT.beacon_click(r)}},o.prototype.ajaxReq=function(t,o){var i,r,a=XMLHttpRequest.DONE||4,s=new XMLHttpRequest;if(n.documentMode&&n.documentMode<10)return(new e.XDomainRequest).onload=function(){try{r=JSON.parse(i),o(r)}catch(e){return}},s.open("GET",t),void s.send();s.onreadystatechange=function(){if(s.readyState===a)if(200===s.status){i=s.responseText;try{r=JSON.parse(i),o(r)}catch(e){return}}else o(r)},s.open("GET",t,!0),s.timeout=1e4,s.send()},e.YAHOO||(e.YAHOO={}),e.YAHOO.Util||(e.YAHOO.Util={}),e.YAHOO.Util.VoiceSearch=o}(window,document)}();var Wn={containerClass:Un.tooltip,textClass:Un.tooltip__text,showClass:Un["tooltip--show"]},Jn=["zh-hant-tw","zh-hant-hk"];ye("ybar-mod-searchbox",(function(e){var n={ybar:document.getElementById("ybar"),searchInput:document.getElementById("ybar-sbq"),buttonBar:document.querySelector(".".concat(Un["sa-btn-bar"])),voiceSearchBtn:document.getElementById("ybar-sbq-voice"),searchForm:document.getElementById("ybar-sf"),searchBoxIcon:document.querySelector(".".concat(Un["searchbox-icon-uh3"])),searchBoxPlaceholder:document.getElementById("ybar-smartphone-searchbox-placeholder"),searchBoxBackButton:document.getElementById("ybar-search-back-btn"),shopsButtonsWrap:document.querySelector(".".concat(Un["shops-buttons"])),categorySelect:document.getElementById("shops-category-select"),selectedMerchantInput:document.getElementById("selected-merchant-input"),selectedMerchantClearButton:document.querySelector(".".concat(Un["selected-merchant-clear-button"])),submitSearchBtn:document.getElementById("ybar-search"),clearSearchBtn:document.getElementById("ybar-sbq-x")};!function(e,n){var t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    Gen Z Has the Lowest Financial Literacy Levels — Experts Explain Why (2024)

    FAQs

    Gen Z Has the Lowest Financial Literacy Levels — Experts Explain Why? ›

    Why Gen Z Has the Lowest Financial Literacy Levels. Of all the age groups, Gen Z is a particularly fast-paced generation. Functioning with more of a “need to know” mindset, Gen Z may only think about their financial literacy when it starts to affect them.

    What are the financial problems with Gen Z? ›

    Gen Z is spending more than millennials on housing and insurance. Gen Z has more debt than millennials did, even after accounting for inflation and higher incomes. Roughly 1 in 7 Gen Zers are maxed out on their credit cards, more than any other generation.

    Are Gen Z financially savvy? ›

    For example, a new study by the Investment Company Institute (ICI) finds that “Gen Z households have nearly three times more assets in the [retirement] plan accounts (adjusted for inflation) that Gen X households did at the same age.” More Gen Z-ers have retirement plans set up and they've saved more in those accounts.

    Why do people lack financial literacy? ›

    Many education systems (including grade school and college) don't teach students practical financial skills, leaving young people ill-prepared to become savvy or responsible adults in this regard.

    What is the problem with low financial literacy? ›

    The lack of financial literacy can lead to many pitfalls, such as overspending and accumulating unsustainable debt burdens. This, in turn, can lead to poor credit, bankruptcy, housing foreclosure, or other negative consequences.

    What is the biggest problem with Gen Z? ›

    Mental health can be one of the most taboo problems with Gen Z in the workplace, as Gen Z struggles with mental health conditions at higher rates than other generations.

    What percent of Gen Z is financially literate? ›

    Financial literacy is the ability to understand and use financial concepts, including topics like budgeting, saving, investing, and credit. According to a Financial Industry Regulatory Authority (FINRA) survey, only 24% of Gen Z respondents could correctly answer four out of five financial literacy questions.

    Why will financial literacy alone always fail? ›

    Proper education is important, but financial literacy programs focus on the facts and figures and ignore our feelings (our emotions), which ultimately drive our behaviors. It's a mindset problem and not only a money and math problem. For many, money is a cause of stress, worry, fear and even shame and embarrassment.

    How many people struggle with financial literacy? ›

    Only 57% of adults in the United States are financially literate. Missouri, Utah and Virginia boast the best financial literacy rates, while Alaska, Washington, D.C. and South Dakota have the worst financial literacy rates.

    What are the negative effects of financial literacy? ›

    The study found that financial literacy decreases preference for the present, suggesting a positive effect on decision-making and saving behavior. The negative effects of financial literacy include taking too many risks, overborrowing, and holding naive financial attitudes.

    What is the downfall of poor financial literacy? ›

    A 2022 study by the National Bureau of Economic Research (NBER) found that individuals with lower financial literacy scores are significantly more likely to default on loans and credit card debt.

    What is the problem of low literacy? ›

    Impact on health: low literacy individuals have more workplace accidents, take longer to recover and more often misuse medication through ignorance of health care resources and because they have trouble reading and understanding the relevant information (warnings, dosage, contraindications, etc.)

    How to solve financial literacy problems? ›

    6 ways to improve your financial literacy
    1. Subscribe to financial newsletters. For free financial news in your inbox, try subscribing to financial newsletters from trusted sources. ...
    2. Listen to financial podcasts. ...
    3. Read personal finance books. ...
    4. Use social media. ...
    5. Keep a budget. ...
    6. Talk to a financial professional.

    What are the financial trends for Gen Z? ›

    Automatic savings options (32%) Educational programs to teach them how to become financially strong (31%) Ability to set up customized goals (26%) Automated categorization of transactions to help understand where money is going (24%)

    Why is Gen Z struggling so much? ›

    The state of the world also fuels Gen Z's pessimism. An ongoing study at Montclair State University finds that Gen Zers perceive the world as more dangerous than their older counterparts. They're more likely to feel anxiety about extreme weather. Active-shooter drills became the norm while they were in school.

    Which generation is the most financially stable? ›

    For instance, baby boomers feel more financially responsible than other generations; Gen X is most likely to feel financially insecure; millennials have higher ownership rates of various retirement accounts; and Gen Z is the most comfortable talking to their friends and family about finances.

    What disadvantages does Gen Z have? ›

    Cons:
    • Over-reliance on technology: Gen Z don't know life outside technology and they rely on technology to solve all the problems they have. ...
    • Lack of real-life wisdom: Although they're confident and self-centered, they lack real-life wisdom to handle most of the challenges they come across.
    Feb 19, 2020

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