The findings: Bank of America’s report “A Window to Gen Z’s Financial Health” looks at some of the biggest financial stressors that Gen Zers face.

• 51%  say the cost of living is preventing them from being financially successful
• 52% feel stressed about the economy’s instability
• 36% say their income doesn’t cover the cost of their basic needs

The survey also reveals the efforts Gen Zers have made in the last year to still meet their financial goals.

• 51% put money in savings 
• 24% paid off debt
• 25% put money into retirement accounts
• 41% started shopping at more-affordable grocery stores
• 23% reduced their dining out frequency
• 18% started budgeting
• 12% started a side hustle

What this means for banks: We recently covered Gen Z’s summer splurges, which at first glance contradict these findings. But the truth is likely a combination of things: Gen Zers want to enjoy the present and not hold back on related spending. But they desperately want to get on track financially based on where they think they should be compared to their peers and parents.

Our take: Banks can effectively engage with Gen Z by offering products and services that acknowledge the desire for short-term gratification and long-term financial stability. Banks could consider launching:

• Financial wellness tools: Apps or dashboards can integrate budgeting features, debt repayment calculators, and personalized savings goals to help users manage their finances effectively. These tools should gamify the process by offering small rewards for reaching milestones.
• Hybrid accounts: Such accounts combine features of  checking and high-yield savings accounts, automatically sweeping excess funds into savings. This caters to Gen Z’s desire for accessibility as well as passive savings.
• Micro-investing platforms: Develop platforms— in-house or through fintech partnerships—that allow Gen Z to invest small, frequent amounts in exchange-traded funds or fractional shares. This lowers the barrier to entry for investing and aligns with Gen Zers’ desire to build long-term wealth.
• Transparent and educational content: Create easy-to-understand content on topics like credit scores, investing basics, and managing student loans. This builds trust and positions the bank as a helpful partner, not just a financial institution.