From Boomers to Gen Z, financial literacy helps people navigate life’s changing priorities
Submitted by Carson Now Reader on Wed, 04/12/2023 - 7:00am
April is Financial Literacy Month and Greater Nevada Credit Union (GNCU) is offering information and resources for people of all ages and generations to tackle their goals and manage their finances. Being financially literate involves skills such as budgeting, investing, borrowing and personal financial management.
Research from TIAA Institute shows that individuals typically begin adulthood with low financial literacy and, while it increases over time, financial literacy nonetheless tends to remain low across all generations. Armed with financial knowledge and tools, individuals will be better prepared to manage financial challenges and navigate shifting priorities as they age.
Baby Boomers (born 1946-1964)
With retirement on the horizon or already in progress, Baby Boomers are focused on maintaining their lifestyles in retirement. To get there they need a clear plan for how to afford living on a fixed income and an understanding of where and how their cash is invested. Financial advisors provide guidance on investment strategies, estate conservation and more. Health Savings Accounts and high-yield savings accounts can also help retirees make the most out of their retirement with beneficial rates.
Generation X (born 1965-1980)
According to a 2021 study from the World Economic Forum, Gen X spends the most money of any U.S. generation, with an average annual expenditure of $83,357. Gen X is often balancing the cost of raising a family, planning for retirement, supporting higher education costs for their family and caring for aging parents. Traditional and Roth Individual Retirement Accounts (IRAs) are a tax-advantaged way to save for retirement. Special high-yield accounts, like a Share Certificate, can boost saving funds for a specified time period by taking advantage of higher interest rates.
Millennials (born 1981-1996)
According to a study by the Society of Actuaries, 31% of millennials hold student loans and 45% hold credit card debt, which may often complicate managing personal finances. Debt consolidation loans may provide relief by lengthening the repayment period and/or provide a lower interest rate. However, Baby Boomers are expected to transfer $61 trillion of their wealth to millennial and Gen X heirs between now and 2042. Getting guidance from a trusted financial advisor may be beneficial to help individuals continue budgeting, purchase a home, begin investing and more to help inherited funds work for them and their financial goals.
Generation Z (born 1997-2012)
As the youngest generation entering the workforce, Gen Z is establishing financial habits and more than half surveyed say that they want to improve their financial literacy. Impressive for a generation whose thirst for financial education Online savings and budgeting calculators are helpful and convenient tools to assist in setting financial goals. According to a survey from Bankrate, nearly half of Gen Z respondents said their emergency savings is less in 2022 than it was at the start of the pandemic. Savings accounts with monthly deposit requirements can help people of all ages build “rainy day” funds over time.
"No matter your age or financial situation, it's never too late to boost your knowledge, take control of your finances and plan for your future," said Tom Wambaugh, vice president of member services, GNCU. “GNCU is proud to offer a variety of free programs and resources to meet people where they’re at in life to help them live greater.”
GNCU offers free financial education courses for people of all ages. These courses provide basic knowledge on credit, savings, investing, preparing for retirement and much more. For more information about GNCU and its financial resources, visit gncu.org.
