Setting up the Next Generation for Financial Success

Would it surprise you that two-thirds of Gen Z know it’s important to invest, but they don’t know how? Or that over 60% of Gen Z doesn’t know how they will save enough money to retire? Even with more access to financial information than any other generation, Gen Z still doesn’t have confidence in how to make financial decisions.??

These findings from our most recent prosperity study underscore the number one problem that we hear from our customers: confidence. Over and over, customers tell us that they don’t have enough confidence in their financial knowledge to make the right decisions for themselves and their families.?

At Intuit , our mission is to power prosperity, and one of the ways we do this is by giving people confidence in every financial decision they make. That’s why we’ve declared financial literacy a top priority for the company. Today, 75% of teens aren’t confident about their knowledge of personal finances, and 80% of high school graduates wish they would have learned personal finance while in school. We believe increasing financial literacy, especially for young people, is a massive opportunity to set up the next generation for future financial success.??

April is financial literacy month and an important opportunity to rededicate ourselves to this important work. From our prosperity school districts to innovative partnerships with the LA Clippers, we’re proud of the work we’re doing to improve financial literacy–especially in underserved communities. But we also know there‘s still a long way to go. As we look to use our scale and resources to make a real impact, we’re focusing where we think we can make the biggest impact:?

• Start young. We believe we can have the biggest impact by helping to make financial skills training a core part of the curriculum in schools. That way, students enter adulthood with the fundamental skills they need to be financially independent. One of the major challenges to doing this is that teachers don’t have the resources and training they need to properly teach skills like budgeting and tax preparation. We’re working to change this through our partnerships with groups like the Suh Family Foundation. These partnerships instill confidence and provide tools for teachers who are tasked with teaching core finance topics. The program also helps build confidence for students as they apply their financial education in the real world upon graduation.
• Learn by doing. The best way to really learn something is by getting our hands dirty, making mistakes, and then learning and adjusting. That’s exactly what we believe will happen with our inaugural food truck program in Compton, CA. We’ve purchased a food truck for the local high school. The truck will give students access to an industrial grade kitchen, and at the same time it will provide students with real-world experience in running a small business by managing inventory, ordering supplies, cooking and doing all the bookkeeping and accounting needed to keep the truck going and practice running a food truck business. This type of experiential learning is impactful, and we plan to expand the program to other neighborhoods in the Los Angeles region after it launches this spring.??
• Take away the taboo. One of the biggest challenges when it comes to financial literacy is that we don’t talk about it enough. Our recent prosperity study found that Gen Z was more comfortable talking about their sex lives than their finances. We have to remove any sense of stigma or shame if we want to make real progress on financial literacy. Our belief and hope is that by turning up the volume on financial literacy in the classroom, we can take away any taboo people feel about money. Finances should be something we talk about with the honesty it deserves.?

We believe that making these investments in helping people at the beginning of their financial journeys can have a massive long-term impact in powering prosperity around the world. If we can provide young people with financial skills as they open their first bank account, apply for their first credit card, or make their first investment, we can give the next generation the foundation they need to prosper and achieve their dreams.?