Academy Bank Survey Reveals Insights into Gen Z Financial Habits, Credit Knowledge and Challenges

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Zoomers rank growing savings and building credit high priorities and are on track to be largest group of business and homeowners. Academy Bank meets unique needs of Gen Z clients with student savings accounts, mobile banking apps and a focus on digital banking.

KANSAS CITY, Mo., Nov. 7, 2024 /PRNewswire-PRWeb/ -- Gen Z prioritizes savings, building credit and making more money, but could benefit from a greater understanding of how to do all those things. That's according to new research from Academy Bank, a family-owned community bank in Arizona, Colorado, Kansas and Missouri. In its just-released "Navigating Credit Scores: Gen Z's Credit Knowledge and Challenges" report, Academy Banks shares insightful findings about the "Zoomer" generation's financial knowledge and habits.

The report is based on a survey of 215 individuals aged 18-27 years old – the oldest members of Gen Z, which is typically defined as the generation of people born between 1997 and 2012. The youngest individuals of this group will turn 12 by the end of 2024.

Gen Z Financial Goals

Survey respondents rated their top financial goals, with 77%, 51% and 49% selecting "growing their savings," "building credit" and "increasing their income," respectively. "Saving for a major purchase," "buying a house" and "paying off debt" ranked somewhat lower, with 39%, 36% and 33% of survey participants respectively reporting they were aspiring to achieve these monetary objectives.

"The young people who make up Gen Z value different things than other generations. It's important for us to understand this emerging customer base, so we can tailor support and services for them accordingly," said Jodi Vickery, director of consumer banking at Academy Bank. "Conducting research like this helps us provide a superior banking experience through personal service that is welcoming to all."

How Gen Z is Building Credit
When it comes to good financial habits, 72% of the Gen Zers surveyed said they are "paying credit card bills on time" and 53% are "keeping credit card balances low" to build credit. About 70% of the Gen Z respondents have their own credit cards, which are the top credit product used by individuals who participated in the survey.

The next most common credit-building method Gen Zers reported using was student loans at 34%, followed by auto loans (17%), personal loans (14%) and mortgages (12%).

The biggest financial challenge for the Gen Zers in Academy Bank's survey was a "lack of knowledge about credit," even though the overwhelming majority of respondents – 90% – said a good credit score is either "extremely important" (50%) or "somewhat important" (40%).

The Academy Bank survey results indicate Gen Z is focused on building a solid financial foundation through savings and credit-building. Their goals also show a balance between immediate needs, such as increasing income and saving for major purchases, and long-term aspirations like paying off debt and buying a house.

Gen Z Home and Business Ownership

Gen Z is not often a group thought of as business owners, but recent research from The Doescher Group, a business consulting firm, suggests it should be. According to Doescher, Gen X has become the largest group of business owners at 39%, followed by Millennials at 21% and Gen Z just barely behind them at 20%. That percentage will undoubtedly increase as more of Gen Zers come of age.

When it comes to home ownership goals, the recent market has created challenges for Gen Z adults. With rates surpassing 8% for the first time in more than 20 years and house prices remaining high, Gen Z was particularly impacted by the competitive market. Despite that, home ownership rates for Gen Z are higher than home ownership rates for both Millennials and Gen X when they were the same age (Redfin).

Gen Z is navigating the world of credit with a mix of awareness and challenges. While many young adults are proactively building their credit, there remains a significant need for education to help them effectively manage their finances – especially since 28% of Academy Bank survey respondents said they learned about credit and credit-building from online resources like social media channels, which often share inaccurate information.

Academy Bank Can Help

Academy Bank is committed to providing products and services that best serve every demographic, but the following offerings particularly align with the unique needs of Gen Z:

• Student Savings Account – With no minimum balance required until they turn 23, this account makes it possible for students to start saving with minimal funds.
• Mobile Banking App – The Academy Bank user-friendly mobile app allows for easy access to account information, transfers and bill payments on the go.
• Digital-First Approach – Academy Bank's focus on providing a seamless online banking experience is crucial for Gen Zers who are accustomed to digitally managing finances.
• Financial Education – Academy Bank offers financial literacy tools and resources to help Gen Z clients learn about budgeting and responsible money management.
• No Minimum Balance Checking Options – Some Academy Bank checking accounts have low or no-minimum-balance requirements, which can be appealing to young adults who may not have large deposits.

To read Academy Bank's "Navigating Credit Scores: Gen Z's Credit Knowledge and Challenges" report, in its entirety, please click here.

About Academy Bank

Academy Bank is a full-service commercial bank with $2.7 billion in assets and more than 72 banking centers in Arizona, Colorado, Kansas and Missouri. Academy Bank provides a wide range of financial solutions for business and individuals, including commercial and business banking, treasury management and mortgage services. Academy Bank is privately held and family-owned by Dickinson Financial Corporation, a $4.0 billion holding company headquartered in downtown Kansas City, Missouri. Academy Bank's sister bank, Armed Forces Bank, headquartered in Leavenworth, Kansas, proudly serves active and retired military and civilian clients around the world with more on-base locations than any military bank in the country. For more, visit http://www.academybank.com.

Media Contact

Elaina Boudreau, BELA Communications, (913) 660-0548, eboudreau@belapr.com

SOURCE Academy Bank