Growth in credit unions means bringing in new generations, and one of today’s prime targets is Gen. Z, a group of tech-savvy, finance-conscious youngsters who want clear parameters and might need some guidance in the money-management. By understanding the way this population segment thinks, credit unions can better appeal to them as potential members.
An article in the Financial Brand examines factors that influence Gen. Z, using data from an EverFi study to determine how financially literate this generation is and where needs are greatest.
Here are a few highlights gleaned from the EverFi study on Gen Z:
- Only 14% know they should have 6-12 months expenses in emergency savings.
- Only 29% understand that someone with too many credit cards must close the accounts carefully to avoid hurting their credit rating.
- Four out of 10 don’t know that a late payment sent to a collection agency would stay on their credit history six years or more even after it is paid.
- Four out of 10 students with checking accounts admit that they haven’t checked their balance in the past year.
- Four out of 10 haven’t created or used a budget.
- One out of four buy things to improve their mood.
- 10% admit to buying things they can’t afford.
- Only six in 10 say they stop spending when their resources are low.
Read the full article here.