Corebridge Financial research finds nearly three in four Gen Zers say they “got serious” about financial planning before age 25

HOUSTON–(BUSINESS WIRE)– According to a new survey from Corebridge Financial, conducted during National Financial Capability Month, about one in three people surveyed said they did not start serious financial planning until after age 35. However, younger generations are beginning their financial journeys earlier.

Nearly half (49%) of baby boomers reported not starting their financial planning seriously until after age 35, and over a third (35%) delayed it until age 40 or older.

In contrast, 69% of millennials started serious financial planning before age 35. Among the youngest group, 73% of Gen Z began serious financial planning between ages 18 and 25, with less than 20% saying they haven’t started yet.

“The best time to start planting the seeds for financial success is as early as possible, so it is great to see younger people getting a head start on financial planning. Establishing a foundation of financial awareness, literacy, and skills early on can have huge impacts on individuals, families, and society as a whole,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “At the same time, successfully managing your finances is a lifelong process, meaning there is always opportunity to build and sharpen those capabilities – whether that’s in the classroom, the home, or the workplace – helping turn thoughts into actions and actions into outcomes.”

Education is Key to Financial Confidence

Early financial education greatly affects how Americans feel about their financial skills. More than three in five (61%) never took a personal finance class at any level of school. Of those who identify as financial novices, 81% never studied personal finance in school. In contrast, over half (53%) of self-identified experts took a personal finance course in college, and around one-quarter (24%) took one in high school.

Though older generations started their financial planning later, American parents are dedicated to helping the next generations learn early. Parents with children under 18 are teaching their kids about saving money (56%), the value of money (49%), and spending habits (42%).

Financial Skill Building Needs Differ Across Generations

While more than seven in ten are confident in their ability to manage day-to-day expenses (77%), build a budget (73%), and manage debt (72%), there is a significant drop-off when it comes to more complex financial activities. About half are confident in managing strategies to maximize compound interest (52%) or invest in stocks and mutual funds (48%).

Different generations are interested in learning about different topics, reflecting their stages of life.

Gen Z and millennials are most interested in becoming adept at building a budget, with 38% of both groups selecting it as one of the top three financial planning skills they want to gain expertise in. As Gen X approaches the later stages of their careers, they are most interested in investing in stocks and mutual funds (34%) and preparing for retirement (32%). Baby boomers share the interest in becoming investing pros, with 45% wanting to improve this skill. As baby boomers enter their golden years, they are also most interested in planning for long-term care needs (30%).

When improving their financial skills, Americans use different resources. Gen Z is most likely to turn to social media to strengthen financial planning skills (40%), while a plurality of baby boomers (36%) use financial professionals. Although artificial intelligence (AI) is gaining attention in all aspects of life, it is not yet a mainstream financial planning tool, with just 9% of respondents using AI tools to improve their financial skills.

When looking at how Americans spend their time, financial planning takes up a small fraction of their monthly activities. Nearly nine out of ten (88%) spend four or fewer hours per month on financial planning, compared to 41% who spend at least 10 hours per month streaming or watching movies and TV.

Improving Financial Skills this April

Originally designated Financial Literacy Month in 2004, National Financial Capability Month highlights the importance of holistic financial education. When asked what being financially capable means to them, respondents most often selected the ability to be financially independent (39%), to manage day-to-day financial affairs without stress (38%), and to provide for family (37%).

Corebridge encourages those wanting to improve their financial capabilities to use the following resources:

– Assess Your Current Situation: 16% of respondents are willing to take a financial wellness assessment this month. The online Corebridge FutureFIT Wellness Check can help you assess your current situation and create a personalized FutureFIT plan.

– Budget for Today and Tomorrow: 28% of respondents are willing to build a budget within the next month. Use “Factor in your future,” an inflation visualizer created by Corebridge, to help plan for future costs over the next 10, 20, or 30 years.

– Make a Plan to Save: 26% of respondents are willing to change their spending habits in the next month to support their financial future. Use the Saving Center from Corebridge for tips on savings strategies, whether your goal is to keep more cash on hand, reduce debt, or increase retirement savings.

Methodology

The 2024 Financial Capability Survey was conducted online by Morning Consult on behalf of Corebridge Financial between March 19-23, 2024, among a national sample of 2,200 adults.