Members of Generation Z may have only just entered the workforce, but they’re already looking to shake things up. The first step: redefining the role of their employer. Many would like their employer to help them better manage their finances, according to a new United States study.
After two years of the pandemic, many young Americans are paying attention to their personal finances. But they’re not turning to a banker for advice. Many would like their employers to offer resources to help them better manage their finances, according to a report by the pension fund TIAA. Two-thirds of U.S. Gen Zers say business leaders have a responsibility to help their employees improve and maintain their financial wellbeing. In comparison, only 41% of Baby Boomers agree with this statement.
It’s no wonder that young people are more eager to receive financial advice from their companies than their elders. Many are struggling financially and are concerned about the economic impact of the pandemic on their savings. More than one-third of Americans between the ages of 13 and 24 said money was a major source of anxiety for them, according to a study by the Associated Press and the NORC Center for Public Affairs Research.
But Generation Z does not have a defeatist attitude towards money. That’s why they are keen to learn about finance on the internet, via social networks, or at work. Gen Zers are more likely than other generations to engage in financial wellness programs within their companies. Meanwhile, some employees fear that these programs will cost money, or they don’t want to disclose the state of their finances to their employers.
The payoff, however, may be worth it. TIAA’s report states that employees who have engaged with financial wellness programs are more likely to think they are financially secure. They are also more likely to save money for retirement. Proof that youth is not (always) synonymous with recklessness. JB