8 things banks need to know about Gen Z

You might think that Gen Z — starting with people born around the turn of the current century and now between the ages of 14 and 22 — are too young to know what they really want. But recent surveys show that members of this group have strong opinions, habits and preferences that stand in stark contrast to the millennials who came before them and bring them closer to their parents, grandparents and even their great-grandfathers. -parents, who grew up during the Depression.

One of the reasons for the backsliding in attitudes is that people’s views on financial matters tend to be shaped by economic events that occurred during their childhood. And the not too distant economic slump is etched in the minds of young consumers.

“The defining things in life are the things that happen in the early formative years, early adolescence and mid-adolescence,” said Bill Handel, vice president of research at Raddon Research. . “For Gen Z, that event was the financial crisis – they were 9 or 10 years old.”

The experience left them pragmatic and farsighted.

“The notion of the American dream, which was a baby boomer notion, kinda disappeared with Gen X, but came back strong with Millennials,” Handel said. “Gen Z doesn’t think this notion of the American dream is something you can count on.”

As a result, they are hardworking, debt averse, thrifty, and already saving for retirement.

Here’s a look at eight important facts about their business philosophy, banking habits, and financial service options available to them.