Research shows Gen Z is the most financially savvy generation

Financial FOMO – ‘Self Aware’ Gen Z are most confident they are money smart and future focused  – but are overlooking the foundation laying era

•  25% of Gen Z say they consider themselves “very smart” with money
•  88% want to learn more about the smart money moves others are making
• 43% of Gen Z say they regularly discuss their finances with  friends and family

New research from Moneybox, the saving and investing app, reveals that Generation Z (born after 1996) are the most financially savvy generation.  An impressive 25% of Gen Z say they consider themselves “very smart” with money – the highest of any generation surveyed (16% average), and over double compared to Baby Boomers (12%).

Moneybox’s data shows Gen Z is incredibly driven when it comes to wealth building for the future; they are the most likely to set financial goals – both short and long-term (24%) set budgets and stick to them (32%) , and pull a second income from a side hustle (18%). They are also more likely than other generations to use money management apps showing a desire to be on top of both their day-to-day finances and their long term savings.

Gen Z are also very motivated to learn more about finances by learning from others. A significant 88% want to learn more about the financial money moves others are making, and 75%  believe money should be more of an open topic of conversation among friends and family. 43% of Gen Z say they regularly discuss ‘smart money moves’ with their friends and family – double the proportion of those aged 65+ (19%).

However, despite seeing smart money moves from their peers, Gen Z aren’t always acting on these learnings.  Whilst seeing their circle saving regularly is the number one trigger for Financial FOMO in Gen Z (34%) only 28% are saving regularly and they are the least likely generation to utilise a  ‘set and forget’ strategy  – just 10% have set up an auto-save, and 16% have direct debits set up for their bills to be paid automatically.

People who started investing early provided the second biggest national trigger for Financial FOMO, and whilst investing regularly (22%) and investing in crypto (22%) made the top 5 for Gen Z, just 16% claim to have started investing early.

Brian Byrnes, Head of Personal Finance at Moneybox comments: “Gen Z are at the very start of their savings journey so it’s fantastic to see that this generation is feeling more confident when it comes to their finances than previous generations. Their openness to discussing financial topics and learn from their family and friends must be commended, however, it’s important not to focus too much on comparing ourselves to others. Moneybox’s research from last year found that UK adults who had only taken financial advice from friends and family were £42,000 worse off than those who had taken time to seek guidance and do research across multiple sources.

“The FCA and Treasury’s Advice Guidance Boundary Review will also play a pivotal role in supporting Gen Z, and others in their financial lives. Targeted support which is set to be introduced will mean that providers like Moneybox can offer personalised guidance to savers to help them make smart financial decisions with greater confidence.”

Brian adds his tips for savers looking to build a strong financial foundation:

1. Build a strong savings pot: It’s important to have a solid financial safety net in place. A healthy cash savings pot – ideally earning a competitive interest rate – can help you manage unexpected costs and give you peace of mind. Cash ISAs are a great tool for short-term goals, offering easy access to your money while keeping it sheltered from tax. With this foundation in place, you’ll be in a stronger position to invest with confidence if you decide to.

2. Set clear financial goals: Consider what you’re saving for and whether cash savings or investing is the better option to help you get there. If your goal is short-term, like building an emergency fund or planning a holiday, keeping your money in a high-interest savings account or Cash ISA could make more sense. For longer-term goals like retirement or growing your wealth over time, investing in a Stocks & Shares ISA may offer better growth potential. Knowing your purpose will help you choose the right approach and stay focused on achieving your goal.

3. Start small, stay consistent: Whether you’re building up a cash savings pot or starting to invest, consistency is key. Even modest amounts can add up over time thanks to the power of interest and compounding. You don’t have to commit to large sums at the outset, the important thing is to start with what you’re comfortable with, and build the habit. Once you have more financial headroom, you can regularly review this amount to see if you can increase it as your confidence grows.

4. Keep yourself informed: Managing your money isn’t just about investing, it’s about knowing when cash or investing is the right choice for your goals. Take time to learn the basics of both, from how interest rates and inflation can affect your savings, to how investing works in the long run. Use trusted resources, and don’t hesitate to ask for advice if you’re unsure about something. The more you understand, the more confident you’ll feel about making financial decisions.