Zillennials are in their late 20s and early 30s, with many earning lower to middle incomes from entry-level jobs and gig work. These young adults tend to carry high levels of debt and so may struggle to put aside savings. In fact, this generation is as likely to live paycheck to paycheck as millennials. What differentiates zillennials from other generations, however, is that they are more likely to cite living comfortably between paychecks as a financial goal.
What is the reason for their confidence? PYMNTS Intelligence data shows that zillennials are a financially savvy generation, more than older generations may have been in early adulthood. For example, 8 in 10 zillennials report saving since childhood or early adulthood. More importantly, 28% of this generation say they had access to resources to improve financial literacy as a child. Just 8.6% of baby boomers and seniors report the same. Such exposure to financial education matters as higher financial literacy is associated with better financial outcomes.
These are just some of the findings detailed in “Generation Zillennial: How Financial Literacy Drives Financial Confidence,” a PYMNTS Intelligence exclusive report. This edition examines zillennials’ early access to financial literacy resources and its impact on their financial standing and confidence. It draws on insights from a survey of 2,919 respondents conducted from Oct. 9 to Oct. 28.
Good Financial Habits Start Young
Eight in 10 zillennials witnessed or practiced money-saving behaviors growing up, with two-thirds accessing financial literacy resources in their early years.
Zillennials are so financially savvy because many were exposed to financial literacy resources and started saving early. Sixty-three percent of zillennials report that they accessed financial literacy resources in childhood or early adulthood. In contrast, 41% of baby boomers and seniors say the same.
The disparity between these generations in their exposure to financial literacy is even more significant when considering childhood. Twenty-eight percent of zillennials took advantage of these resources in childhood, compared to 8.6% of baby boomers and seniors. In fact, 59% of baby boomers and seniors had no access to financial literacy resources, compared to 37% of zillennials. Such differences are important as higher financial literacy can result in better financial standing.
Zillennials were also more apt than older consumers to practice good financial habits as children and young adults. Eighty-one percent of zillennials report that they typically saved money for larger purchases in childhood or early adulthood. Among baby boomers and seniors, 78% say they did the same. This data includes 43% of zillennials who say they saved for larger purchases beginning in their childhood, compared to 37% of baby boomers and seniors. These findings suggest that this generation are likely well prepared to meet financial challenges they might face in the future.
Moving Beyond Financial Uncertainty
Zillennials who lacked access to financial literacy tools growing up are more likely to struggle to pay bills between paychecks.
The correlation between financial literacy and financial standing is especially evident among struggling zillennial consumers. Currently, 36% of zillennials live paycheck to paycheck with issues paying their monthly bills. They are basically tied with millennials for the highest share across generational groups in that financial lifestyle. Many of these young adults are in the early days of their careers and may be earning lower wages. While some zillennials might earn higher wages, their everyday expenses may make it hard to live within their means.
Moreover, zillennials with less financial literacy are more likely to struggle financially. While 41% of zillennials who did not receive financial literacy education live paycheck to paycheck with issues paying bills, just 33% of those who received it live this financial lifestyle. In fact, zillennials with early financial education are 26% less likely to struggle with bills than those without it. This highlights the importance of financial literacy in enabling consumers to successfully manage their finances as they become adults.
Data also shows that more of these young adults strive to do better financially than older generations. For example, 43% of zillennials cite living more comfortably between paychecks as a long-term financial goal. In contrast, just 30% of baby boomers and seniors say the same. This difference suggests that these young adults imagine a future different from their current paycheck-to-paycheck lifestyle. Many expect that their financial standing will improve.
Access to Financial Literacy Matters
Zillennials exposed to financial literacy education are more confident in securing their long-term financial future.
While formal financial education varies dramatically between generations, actual childhood saving behaviors are similar. For instance, 70% of zillennials report that saving to pay off debt was typical in their household as a child or in early adulthood, compared to 64% of baby boomers and seniors. These findings suggest that many parents passed down good financial habits. Nonetheless, zillennials benefited from having greater access to financial literacy resources when growing up.
The financial education this generation received when they were younger benefits them as adults. Financially literate zillennials are more likely to feel confident about achieving their financial goals. In fact, 46% of these zillennials feel highly confident they can achieve their goal of living more comfortably between paychecks. In contrast, 37% of zillennials not exposed to these resources said the same. These findings further highlight the correlation between financial literacy, improved financial standing and financial confidence. Zillennials who received financial education growing up are well prepared to face financial challenges and achieve their long-term financial goals.
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Methodology
“Generation Zillennial: How Financial Literacy Drives Financial Confidence,” a PYMNTS Intelligence exclusive report, is based on a survey of 2,919 U.S. consumers conducted from Oct. 9 to Oct. 28. This edition examines zillennials’ early access to financial literacy resources and its impact on their financial standing confidence. Population weights are utilized to ensure analysis remains representative of the U.S. adult population.
