Op-Ed: How Financial Literacy Can Help Gen Z Navigate Financial Hurdles

By Sikskiaki Castle, Mentee at The Gents’ Foundation

Gen Z is having a hard time navigating today’s financial system, due to our inflationary economy, the constant price increase in grocery items, clothing and beauty products, and the housing market. Amid this economic uncertainty, financial literacy is the most reliable alternative for this generation to learn how to develop better money habits while educating ourselves on how to navigate financial decisions. 

I speak for almost all Gen Zers when I say: we cannot blame our generation for our lack of knowledge on basic concepts of money, such as banking and credit. Our education system is not necessarily designed to teach us these things in high school or college at large unless students are doing a major that is related to these financial terms. As Associate Professor of Marketing at Middle Tennessee State University, Dr. Sherry J. Roberts put it, “today’s 18-year-olds face financial and money management decisions from high school graduation to retirement, with the decisions they make now often having long-term effects.”

Financial education is not only becoming increasingly an important element that schools should consider for their curriculums for our general knowledge, but it is the most efficient alternative that can help young people navigate this current inflationary economy. “Given the state of our economy, financial literacy is more than ever indispensable,” said Guichelet Louis, founder of Guich Couture and financial literacy mentor at The Gents’ Foundation. “Equipping our youth with financial knowledge is akin to providing them with a compass in today's economic landscape.”

Many teens and young adults struggle with smart financial decisions because of the economy. A new Bank of America report revealed that rising prices are forcing Gen Z to cut back on everyday expenses like dining out, socializing, and grocery shopping. When they do want to spend responsibly while considering their long-term goals, the cost of living is still not on their side, which leads them to unnecessary debts. The report points out that the cost of living weighs heavily on Gen Z, with 52 percent saying they cannot afford the life they want on their current income.

Today, it is imperative that we include financial literacy learning across the board. Understanding credit, budgeting, and saving can help Gen Z prioritize needs over wants and build financial stability. “Without the teaching of basic terms like banking and credit at least in elementary and high school, our generation will have no tools to face the financial challenges of adulthood,” argued Adam Olivier, IT fellow at The Gents’ Foundation. This knowledge will empower Gen Z to make informed choices and achieve financial success for their future.

The reality is that today’s Gen Z will be tomorrow's adults. If they do not know how money works now, they would likely not be able to make measured financial decisions when they get older. State and federal officials must create a specific budget to fund financial literacy courses in schools nationwide. But I also urge my fellow Gen Zers to start educating themselves now by utilizing social media as a good tool to look for younger content creators who are teaching the basics of finance.