According to a study by Corebridge Financial, nearly three in four Gen Zers said they “got serious” about their financial planning before the age of 25.
Houston, April 24, 2024–(BUSINESS WIRE)–Approximately one in three respondents are over the age of 20, according to a new CoreBridge Financial survey measuring sentiment about financial knowledge and expertise during National Financial Capability Month. They said they didn't take financial planning “seriously” until then. 35. However, younger generations report starting to become economically active earlier.
Almost half (49%) of baby boomers say they didn't start seriously planning their finances until age 35, and more than a third (35%) postponed planning until age 40 or older is the answer.
In contrast, 69% of Millennials say they started seriously planning their finances before the age of 35. The youngest generation is even more precocious. 73% of Gen Z reported thinking seriously about their money between the ages of 18 and 25, compared to less than 20% who said so. They haven't taken this topic seriously yet.
“The best time to start planting the seeds of financial success is as early as possible, so it’s great to give young people an early start on financial planning. Establishing a foundation of skills can have a huge impact on individuals, families, and society as a whole,” said Terry Fiedler, president of retirement services at CoreBridge Financial. Masu. “At the same time, successfully managing your household finances is a lifelong process, which means there are always opportunities to build and hone your ability to turn thoughts into actions and actions into results, whether in the classroom, at home, or at work.” .”
Education is the key to financial confidence
Early financial education has a profound impact on how Americans feel about their financial abilities. More than three in five (61%) of them have never taken a personal finance class at any level of school. Overwhelmingly, 81% of people who identify as financial novices never learned about personal finance in school. In contrast, more than half (53%) of self-proclaimed experts took a personal finance course in college, and about a quarter (24%) took a personal finance course in high school.
While older generations have been slow to plan their finances, American parents are working hard to help the next generation learn early. Parents with children under 18 teach their children about saving money (56%), the value of money (49%), and spending habits (42%).
Financial skill-building needs vary by generation
More than 7 in 10 people are confident in their ability to manage daily expenses (77%), build a budget (73%) and manage debt (72%), but significantly less It is decreasing. More complex financial activities. About half are confident in their ability to manage a strategy to maximize compound interest (52%) or invest in stocks or mutual funds (48%).
Respondents from different generations wanted to know more about different topics, which likely reflects the different stages of life of different age groups.
Gen Z and Millennials say they are most interested in becoming proficient at budgeting, with 38% of both groups listing it as one of the top three financial planning skills they want to quickly gain expertise in. Selected. At each stage of their career, they are most likely to express an interest in becoming an expert in investing in stocks and mutual funds (34%) and preparing for retirement (32%). Baby boomers share a desire to become investment professionals, with 45% saying they want to develop this skill immediately. As baby boomers enter their golden years, they are also most interested in becoming experts in planning for their long-term care needs (30%).
When Americans want to improve their financial capabilities, they tap into a variety of resources. Gen Z is most likely to turn to social media to enhance their financial planning skills (40%), while multiple baby boomers (36%) turn to financial professionals. Artificial intelligence (AI) continues to gain traction in all aspects of life, but it has yet to break into mainstream financial planning tools, with respondents saying they use AI tools to improve their financial skills. Only 9% of respondents said it.
When you look at how Americans spend their time, financial planning makes up a small portion of their monthly activities. Nearly nine in 10 (88%) spend less than four hours a month on financial planning, compared to 41% who spend more than 10 hours a month streaming or watching movies or TV. .
Improve your financial skills this April
National Financial Competency Month, originally designated Financial Literacy Month in 2004, emphasizes the importance of comprehensive financial education. When asked what being financially competent meant to them, respondents said they were able to become financially independent (39%), manage day-to-day financial matters without stress (38%), and support their families. ability to feed (37%) was most likely to be selected).
Corebridge recommends that those looking to strengthen their financial capabilities take advantage of the following resources:
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Let's take inventory of where we are today. 16% of respondents said they were willing to take a financial health assessment this month. The online Corebridge FutureFIT Wellness Check helps you assess your current situation and create a personalized FutureFIT plan.
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budget for today and tomorrow: 28% of respondents said they plan to create a budget within the next month. Factor in your future, an inflation visualizer created by Corebridge, helps you plan for cost growth over the next 10, 20, or 30 years.
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make a plan to save: 26% of respondents say they are willing to change their spending habits in the next month to support their financial future. Use Corebridge's Saving Center to get tips on savings strategies, whether it's increasing cash on hand, reducing debt, or increasing your retirement savings.
methodology
The 2024 Financial Capability Survey was conducted online by Morning Consult on behalf of Corebridge Financial among a national sample of 2,200 adults from March 19 to 23, 2024.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) empowers more people to take action in their financial lives. With more than $380 billion in assets under management and management as of December 31, 2023, Corebridge Financial is one of the nation's largest retirement solutions and insurance product providers. We proudly partner with financial experts and institutions to help individuals plan, save, and achieve a secure financial future. For more information, visit corebridgefinancial.com and follow us on LinkedIn and YouTube.
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contact address
Işıl Müderrisoğlu (Investor): investorrelations@corebridgefinancial.com
Jay Russo (Media): jay.russo@corebridgefinancial.com
