Helping Millennials & Gen Z find financial security in uncertain times
The COVID-19 recession poses financial challenges to many Americans, but especially younger generations who are often more financially vulnerable than older consumers. Financial institutions can help by leveraging the power of peer comparison, embracing digital payments, and empowering younger people to address their debt.
While the pandemic has touched all our lives, younger people have been particularly hard-hit financially. About one in three Millennials (ages 24 to 39) and members of Gen Z (ages 18 to 23) say that COVID-19 has had an extreme or very negative impact on their financial security, according to research by Age Wave and Edward D. Jones brokerage.
But this crisis is also an opportunity for these consumers. Now is the time for them to take a hard look at their saving, spending and investing patterns and establish new habits that will allow them to both weather the pandemic and build a strong foundation for the future.
Financial institutions that want to help younger generations may have to change their usual approach. These groups are tech-savvy and peer-aware; they prioritize transparency and expect hyper-personalized solutions.
Fortunately, financial professionals are coming up with innovative new tools and strategies that are well suited for them.
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