Bank of America Better Money Habits Research Finds That, Despite Barriers, 80% of Gen Z Are Taking Positive Steps Toward Achieving Their Financial Goals
Gen Z is emerging from the pandemic with a greater focus on saving, financial independence, gathering life experiences, and seeking financial education many were without access to in their schools and communities growing up. This is according to new research published today by Bank of America’s Better Money Habits exploring what this generation (ages 18 to 24) view as their greatest financial barriers, and how they are taking charge of their financial lives.
“As Gen Z gets started financially and professionally, we see a great deal of motivation and positive steps toward building a solid financial foundation,” said Christine Channels, Head of Community Banking and Client Protection at Bank of America. “At the same time, an unmistakable need for more financial education persists among this generation. Through our Better Money Habits platform, we’re committed to connecting these young adults to a wide range of resources and guidance to help them develop financial know-how, and navigate barriers to achieving their goals.”
Key findings from the research include:
The research also explored the role of race, ethnicity and gender in access to financial education and opportunities, uncovering:
“As a company and as a society, it is critical that we address the financial education and opportunity gaps that persist across the communities of young adults we serve,” said Alberto Garofalo, Community Banking & Development executive at Bank of America. “This research is another step in our commitment to fully understanding the unique needs and priorities of diverse communities, so we can provide the resources and guidance to empower everyone on their journey to financial wellness.”
As Gen Z prioritizes better money habits, they continue to seek advice and guidance as they look to take control of their finances and plan the future. Bank of America’s Better Money Habits platform offers free financial education content and tools that break down financial topics in ways that are approachable and easy to understand. The platform connects people at all life stages to relevant tools that help build know-how to help them take action toward their financial goals. It also includes specific resources catered to Gen Z and young adults, covering topics including budgeting, building credit, borrowing, investing and more. We continually look for ways to expand the reach of Better Money Habits and also offer Spanish language resources on the site.
The study was conducted August 12 – September 7, 2021, by Ipsos in English and is based on nationally representative probability samples of 1,024 general population adults (age 18 or older), and a partially overlapping sample of 635 Gen Z adults (age 18-24), including 28 Gen Z adults from a non-probability sample. This survey was conducted primarily using the Ipsos KnowledgePanel®, the largest and most well-established online probability-based panel that is representative of the adult US population. Panelists are scientifically recruited into this invitation-only panel via postal mailings to a random selection of residential addresses. To ensure that non-internet households are included, Ipsos provides access to a tablet and internet connection to those who need them. Because of this probability-based sampling approach, KnowledgePanel findings can be reported with a margin of sampling error and projected to the general population. The margin of sampling error for the general population sample is +/- 3.3 percentage points at the 95 percent confidence level.
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Betty Riess, Bank of America