The Financial Literacy Gap Facing Today’s Youth

It wasn’t long ago that Boomers and Gen Xers were lamenting the rise of Millennials. But the generational spotlight has shifted. Now, it’s Gen Z and the up-and-coming Generation Alpha who are stepping into the world—and bringing with them a new set of financial challenges.

Who Are Gen Z and Gen Alpha?

It wasn’t long ago that Boomers and Gen Xers were lamenting the rise of Millennials. But the generational spotlight has shifted. Now, it’s Gen Z and the up-and-coming Generation Alpha who are stepping into the world—and bringing with them a new set of financial challenges.

Who Are Gen Z and Gen Alpha?

Gen Z, also called “Zoomers,” includes those born between 1997 and 2012. They’re currently between 9 and 24 years old, making up nearly 68 million people in the U.S. Generation Alpha follows, with children born starting in 2012 and expected to continue through at least 2025. This youngest generation is already more than 48 million strong in the U.S. alone.

Here’s a quick generational breakdown in terms of current U.S. population:

• Baby Boomers (Ages 57–75): ~71.6 million

• Gen X (Ages 41–56): ~65.2 million

• Millennials (Ages 25–40): ~72.1 million

• Gen Z (Ages 9–24): ~68 million

• Gen Alpha (Born 2012 onward): ~48 million

Influence Is Everything

Millennials—many of whom are now parents—once led the charge in digital culture. But their kids are the ones shaping the future of consumer behavior. A recent survey shows that 37% of parents say their children ask for toys or gadgets because their friends have them. Another 22% say online influencers play a major role in what their kids want.

This early exposure to digital marketing and peer influence only underscores the importance of equipping kids with solid financial knowledge from an early age.

Financial Stress Starts Young

Financial anxiety isn’t waiting until adulthood to take hold. A study by Junior Achievement USA and Citizens Bank found that 54% of teens worry about how they’ll finance their future. Rising tuition costs are a major concern—almost 70% said those expenses have changed their post-high school plans.

One possible reason? A lack of financial education. More than 40% of teens say they haven’t taken a financial literacy class in school. Nearly as many believe that simply understanding how student loans work would help ease their concerns.

As David Beckerman of David Lerner Associates puts it, “Gaining a better understanding of financial basics and developing good fiscal habits are the best way to stay in control of your money and financial future.”

Tools to Build Financial Confidence

The good news is there are more resources than ever to help parents, teachers, and teens improve financial literacy. Here are a few accessible platforms and tools:

• NerdWallet: Offers easy-to-understand guides, calculators, and articles covering everything from budgeting and student loans to investing and credit cards.

• Greenlight: A debit card and app for kids that lets parents manage spending, set savings goals, and even automate allowances. It’s a hands-on way to teach money management.

• Cash App: While primarily used for peer-to-peer payments, Cash App also includes features like a debit card, savings options, and even investment tools that can introduce older teens to basic banking and finance.

• Khan Academy: Provides free courses and videos on personal finance, economics, and money basics—great for students and educators alike.

• Junior Achievement: Offers in-school programs and digital content designed to teach financial literacy, entrepreneurship, and career readiness.

The Bottom Line

Financial literacy isn’t just about knowing how to balance a checkbook—it’s about building a mindset that helps young people feel empowered to make smart, informed decisions. And while schools and institutions may lag behind, parents and mentors have the tools today to help bridge the gap.

Start early. Stay consistent. And don’t underestimate how powerful a little financial education can be in shaping a confident, capable next generation.