Gen Z is the first truly digital and social media native generation. Born between 1996 and 2012, they have built a relationship with technology from the beginning, integrating it into their lives from early childhood. Their approach to day-to-day activities and their relationships with peers and their surroundings can differ considerably from the previous generations, and Gen Zs’ financial habits aren’t exempt from those differences.  As financial services have largely gone online, behavioral shifts to self-service, digital banking, and automation have changed the landscape dramatically in the last 10+ years. In this article, we will share 18 stats powered by AnalyticsIQ that will help you have a deeper understanding of Gen Z characteristics around money management in a digitized world. 

Gen Z finance habits: how do they manage their money?

Gen Z’s financial habits are a direct response to society’s evolution: fewer face-to-face interactions and more self-driven actions through their mobile devices. Let’s dive into the stats to understand their behavior and motivations:

Insurance coverage becomes important

  1. Gen Z is nearly 3X more likely to be interested in pet insurance than the general population (+286%) and 65% more likely to purchase.
  2. Gen Z is 16% less likely to purchase renters insurance.
  3. Gen Z is 12% more likely to purchase vision insurance than the general population.
  4. Gen Z is 25% more likely to be in the market for auto insurance.
  5. Gen Z is 22% more likely to be in the market for health insurance, and 27% more likely to have Marketplace health insurance.

New relationships with financial entities

  1. Gen Z and Millennials are more likely to invest in Crypto, with Gen Z 37% more likely than the general population.
  2. Mobile first: Gen Z is 82% more likely to prefer mobile banking to take care of banking needs, 61% less likely to go into their local branch, and 53% less likely to bank online.
  3. Gen Z is 3X more likely to make payments digitally compared with the general population.
  4. Gen Z and Millennials are more likely to manage investments using their mobile device, with Gen Z 190% more likely than the general population. 
  5. Gen Z is 52% more likely to use mobile wallets than the rest of the population. 
  6. Gen Z is 38% more likely to use “Buy Now Pay Later” options than the rest of the population. 
  7. Gen Z is 55% less likely to be actively investing and concerned with financial planning. 
  8. Both Gen Z and Millennials are highly unlikely to ensure their finances are highly organized and accurate with Gen Z 95% less likely to check all statements to verify accuracy. 

Gen Z consumer behavior

  1. Gen Z is concerned about the environment, 51% more than the general population, but doesn’t regularly change their buying behaviors based on their concerns. 
  2. Gen Z is over 5X more likely to use Venmo compared with the general population. 
  3. Gen Z and Millennials are highly likely to use deal sites, with Gen Z being 87% more likely than the general population. 
  4. Gen Z is 37% more likely to seek opportunities for financial growth compared to the general population. 
  5. Gen Z is over 3X more likely to make financially impulsive decisions than the general population.

AnalyticsIQ data powered the creation of all the Gen Z financial habits statistics referenced in this article. Any comparisons that show a comparative lift or decrease in behavior (EX: X% more likely) are compared against the general population. Want to dig in deeper on personal finance audiences, or gain a better understanding of your existing customer base? Check out our Financial Services page to access many additional resources including eBooks and case studies. We love collaborating to find new ways our data can solve everyday problems, so reach out to us at Let’s talk! Technology illustrations by Storyset