Loading...

Generation Z Wants Financial Support Now. Here’s Why You Should Provide It.

Published: March 7, 2023 by Brian Funicelli

generation z wants financial support

Generation Z, or people born between 1997 and 2012, make up about 27% of the American population[1] and have $360B in disposable income[2]. While they may be a young demographic now, Gen Z will soon represent a significant portion of buyers and borrowers in the United States, creating an enormous opportunity for financial institutions to start engaging with them now.

Here are three reasons why you should be marketing financial services to Gen Z.

Improving financial wellness is a priority for Gen Z

Gen Z is a pragmatic cohort of consumers, but they’re also uncertain and anxious about their financial future.The top concern amongst Gen Z is the cost of living.

Gen Z

For these reasons, businesses have a unique opportunity to help those consumers feel less stressed and more confident by providing them with financial services.Thiscan turn those consumersinto loyal, long-standing customers.

Gen Z has the lowest credit score of any generation

Gen Z ranks lowest in average and median VantageScore® credit score* compared to all other generations, including Gen Y (or millennials), Gen X, and baby boomers.[4] While this is partially due to Gen Z being younger than the others, it’s also a result of having shorter credit histories and fewer lines of credit.

This presents a great chance for businesses to help Gen Z individuals establish responsible financial habits, such as opening a new line of credit to begin building a healthy credit history.

Gen Z is actively seeking support now

Consumers in the Gen Z age rangerecognize the importance of personal finance, but they also realize that they don’t have the knowledge needed to be successful.

Gen Z

While people in Gen Z are still young (currently between the ages of about 11 and 26), many need guidance now for their financial wellness and many need help to keep their financial future secure. This means now is the perfect time to start building a lifetime relationship with them and become a trusted advisor by providing financial products and services to help them through their financial journey.

There are about 72 million Americans in the Gen Z demographic[1]. A large percentage of this group may feel strongly about improving their financial wellness. With high levels of financial stress and generally low credit scores, many of them are looking for companies they can trust to help them build good credit and take control of their personal finances.

Since 2019, the number of consumers under the age of 30 enrolled in Experian Partner Solutions credit monitoring and identity protection services has doubled from 9% to 18%. Offering these financial tools to Gen Z is essential to building their trust and financial wellness, which can lead to an increase in future acquisition, retention, and revenue for your business.

*Calculated on the VantageScore® model. Your VantageScore® credit score from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore® credit score. Click here to learn more.

[1]Insider Intelligence. 2023. Generation Z News: Latest characteristics, research, and facts.

[2]Forbes. 2022.As Gen Z’s Buying Power Grows, Businesses Must Adapt Their Marketing.

[3]Deloitte. Deloitte Gen Z and Millennial Survey 2022. Jan 2022.

[4]Experian State of Credit Report. 2021.

[5]Greenlight Financial Technology, Inc. Survey finds Gen Z lacks knowledge and confidence in personal finance and investing. 2021.

[6]NAPFA. NAPFA Survey on Americans’ sources for financial planning and retirement investing advice. 2021.

Related Posts

While Experian is known as a trusted source for credit insights, we have built a reputation for helping car shoppers, dealers, and lenders make informed decisions with confidence in the automotive space. Leveraging the value of data is key for identifying the latest trends in markets, behaviors, and industry changes. In fact, Experian’s Automotive Market Trends Report: Q1 2025 revealed the latest shifts in alternative fuel type registrations. Through the first quarter of this year, data found that growth in retail registrations for electric vehicles (EVs) is slowing compared to previous years, reaching 7.8%, down from 7.9% last year and 7.1% the year prior. Meanwhile, hybrids increased to 13.6% of new retail registrations through Q1 2025, from 11.3% through Q1 2024 and 8.8% through Q1 2023. Some of the uptick in hybrids may be attributed to consumers’ concerns with EV charging infrastructure and range anxiety. Hybrids are known to offer practical middle grounds—with the convenience of refueling and not having to plan longer trips around charging availability, this fuel type is becoming a more ideal choice for some. Vehicle preferences continue to vary by age group Through Q1 2025, Gen Z accounted for 14.8% of new retail hybrid registrations and 8.4% of EV registrations, while Millennials made up 15.9% for hybrid and 11.4% for EVs. On the other hand, Baby Boomers were at 16.3% for hybrids and 5.9% for EVs this quarter. Younger generations have naturally gravitated towards the gas-alternative fuel types as it aligns with their current lifestyle, including everyday commuting and the tech-forward features that these vehicles offer. As the automotive industry continues to evolve, staying attuned to the shifting landscape is essential. We’re committed to delivering insights that will help professionals make forward-looking decisions and stay ahead of the curve. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q1 2025 presentation on demand.

Published: July 7, 2025 by John Howard

Understanding generational trends and preferences is more crucial than ever, especially for the financial services industry.

Published: June 24, 2025 by Josee Farmer

Proactive credit limit increases can be a game-changer for financial institutions, improve financial health and stability.

Published: May 9, 2025 by Alan Ikemura