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As Financial Literacy Month unfolds this April, CivicScience is taking a closer look at Gen Z — a tech-savvy generation coming of age in a time of economic uncertainty. Their approach to budgeting, investing, and financial planning reflects the challenges of today’s economy and points to long-term shifts in how Americans may build and manage wealth.
Here are five key insights on Gen Z investing and budgeting in 2025:
1. Gen Z is losing confidence in their financial literacy.
When it comes to personal finances—like budgeting, saving, and investing—Gen Z adults aged 18 to 29 are now the least likely to say they’re ‘very’ financially literate (excluding those who answered ‘I don’t know’). One-quarter of this age group expresses strong confidence in their financial knowledge, at least four percentage points lower than older generations. This marks a notable shift from two years ago – in April 2023, 36% of Gen Z adults said they were ‘very’ financially literate, surpassing all other generations. This could be a sign that economic challenges, such as inflation, student debt, or rising living costs, are making younger adults more aware of gaps in their financial understanding—or more cautious in how they rate their own skills.
However, it’s worth noting that over the last two years, Gen Z was the most likely age group to say they’re ‘not at all’ financially literate—a figure that increased from 12% to 18%.
2. Gen Z is less likely than the Gen Pop to say they manage finances well — but half still feel confident in their money skills.
Compared to the Gen Pop, Gen Z adults aged 18–29 are consistently less likely to say they manage their money ‘well.’ Between 57% and 62% of the Gen Pop report managing their finances ‘well’ over the past four years, that figure, however, remains notably lower—between 43% and 50%—among Gen Z. That said though, the percentage of Gen Z who manage their finances ‘well’ is at a high of 50%.
Gen Z is also more likely than the general population to rate their money management as ‘badly,’ though that share has declined slightly over time, recently dipping below 17%. In contrast, the general population has remained relatively steady in the 12%–14% range. Neutral responses are also more common among Gen Z, suggesting younger adults may feel less confident or more uncertain about their financial skills than the broader population.
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3. Gen Z has different investment priorities.
Growing up in the digital age, it’s no surprise that Gen Z approaches investing differently than the Gen Pop. While traditional investments like savings accounts, retirement funds, mutual funds, and stocks or bonds are still the most common across the general population—including Gen Z—young adults are more likely to put their money into cryptocurrency and gold or silver. This suggests a stronger interest in often more volatile assets—possibly driven by digital accessibility, skepticism toward traditional financial institutions, or a desire for quicker returns.
4. Young adults are putting more of their paycheck into savings, but the picture isn’t all positive.
At the same time, Gen Z appears to be more intentional about saving, even as their investment strategies diverge from the Gen Pop. Adults aged 18 to 29 are most likely to set aside between 6% and 10% of their earnings, while the general population is more likely to save between 1% and 5%. And while a growing number of Americans—regardless of age—have reported saving 0% of their paycheck since 2023, Gen Z is five percentage points less likely than the general population to fall into that category. Interestingly, Gen Z and the general population are equally likely to save more than 10%, indicating a split within the generation—some young adults are prioritizing savings despite financial pressures, while others may be struggling to set anything aside.
Use this Data: CivicScience clients use data like this to understand Gen Z’s evolving saving habits and monitor shifts in financial sentiment in real-time, allowing them to drive growth and engagement.
5. Gen Z is eager for financial advice.
Gen Z also shows strong interest in using a financial advisor, though they are less likely than the general population to currently have one (15% vs. 23%). However, they’re 13 percentage points more likely to express interest in getting one (33% vs. 20%). The main barriers for Gen Z are cost and distrust, while the general population cites lack of funds, not needing one, and cost. Younger adults are also twice as likely to say they don’t know where to find an advisor. This suggests a growing demand for affordable and accessible financial advice tailored to younger consumers.
Answer our Poll: Are you more likely to give or receive financial advice?
Looking ahead, Gen Z’s evolving financial habits reflect broader shifts in how Americans will approach financial literacy. While this generation faces economic uncertainty, they are actively engaging with their finances in ways that suggest a growing need for more accessible and relevant financial education. From prioritizing alternative investments like cryptocurrency to seeking financial advice, Gen Z is forging its own path. Despite feeling cautious about their financial capabilities, they’re more aware of the need for financial guidance and are keen to improve their knowledge. As they continue to navigate these challenges, Gen Z’s experiences will likely shape the future of financial literacy, driving demand for resources that cater to their unique needs.
