57% of Gen Zers prefer savings accounts as their investment method

57% of Gen Zers believe that a savings account is the best way to invest their money. In contrast, almost half of baby boomers prefer investing in the stock market.

25% of Gen Zers express a lack of confidence in their financial skills, and over one in three said their parents set a bad financial example.

However, 39% of Gen Zers prefer seeking financial advice from a family member rather than a professional advisor, which may reflect a trust factor.

This tendency, according to FINRA and the CFA Institute, reflects Gen Zers' lack of financial knowledge and a strong desire to focus on managing expenses without accumulating more debt.

Gen Zers who do invest in products other than savings accounts tend to be older within the generation, male, college-educated, and have a higher income. These demographic factors could contribute to their investing confidence.

Moreover, Gen Zers typically save for specific goals rather than solely aiming to grow their savings overall.

Gen Z emerges as the generation with the least financial confidence, with 28% expressing doubts about their financial capabilities.

According to Bank of America, 85% of Gen Zers identify one or more barriers to financial success, with the cost of living expenses being the top concern, mentioned by 53% of respondents.

Addressing the cost of living crisis is crucial for Gen Z's financial well-being. However, providing them with financial knowledge and tools is equally important.

Educational initiatives focusing on budgeting, investing, and understanding the current economic landscape can equip Gen Zers with the confidence and skills they need to thrive financially.