They’re prioritizing financial health over social experiences.

The two generations are redefining financial responsibility, and banks must keep up.

Behaviors vary between kids with Gen X vs. millennial parents.

Insights from Wells Fargo indicate what consumers are most worried about—and how FIs can help.

Gen Zers prioritize saving money. But they aren’t all putting their savings where it can help them make more money, per a recent PYMNTS study. Financial institutions (FIs) have an opportunity to help Gen Zers save faster, earning their loyalty. But to help them put that money to work, FIs must have more insight into what customers are doing with their money. Using open banking as an opportunity, FIs whose customers share their data with fintechs could have a more detailed view of what happens to their customers’ money. If they see money in non-interest-bearing accounts, FIs could send the customer a personalized message about how that money could perform in a higher-yield account.

The trend: In June, we covered how Gen Zers intended to prioritize planning for summer over their financial futures. They said they would return to their finances when summer is over but spend more on nonessentials in the meantime. CIT Bank’s 2025 summer vacation survey reveals they did just that. What this means for banks: As we near the end of summer travel, financial institutions should prepare campaigns that advertise budgeting and savings products that can help their customers get back on track financially. Such products could include high-yield savings accounts, in-app budgeting tools, certificates of deposit, and automated savings features.

The findings: Deloitte’s July 2025 ConsumerSignals report gives us a glimpse into US banking customers’ current stressors and banks’ upcoming challenges. We saw that: deposits are about to drop, housing prices stress every generation, consumers are curbing their splurging, and they’re more worried than they were last year. Our take: Though US banking customers are facing a number of stressors, they’re demonstrating resilience and savvy that has helped them pull through. That resilience could be informed by advice from financial experts they trust, including at their FIs.

The news: We’ve covered banking customer anxieties about inflation, tariff chaos, and broader economic warning signs. Banks have been offering products and advice to help customers plan for the future and strengthen their financial standings. But some financial institutions (FIs) may be failing to address customers’ more pressing financial needs. Our take: For customers showing signs of financial stress, banks must pivot from long-term planning advice to addressing immediate financial survival. This requires delivering highly personalized, practical guidance on urgent concerns like budgeting and debt management. To identify customers in need of help, FIs can analyze their financial health, emergency savings, and how often they nearly or completely empty out their accounts to pay their bills. These steps can prove the FI’s value and build trust in the short term.

The news: Seventy-one percent of US parents with children ages 1 to 17 give them an allowance, averaging $37 per week, per a recent Wells Fargo study. But not all are confident that they’re able to teach their children about banking or savings. Banks have a clear opportunity to support parents in teaching their children about money—and by doing so, they’re strengthening their ties with their next generation of customers. They should develop engaging, age-appropriate digital tools and educational content that simplify complex concepts and encourage responsible money management. Additionally, banks can offer resources and workshops for parents to equip them with the confidence and knowledge to guide their children's financial journeys.

In today’s episode, we talk about what young people want most from a bank, their favorite alternative investments, and what their parents have taught them about saving for the future. Join the discussion with host and Head of Business Development Rob Rubin, Analyst Lauren Ashcraft and Senior Analyst Grace Broadbent.

A recent study reveals this generational cohort cares less about accumulating and paying off debt than they do about saving.

Gen Zers’ financial aspirations and spending habits aren’t in line with their economic reality. Banks can help them manage their expectations and plan for the future with engaging financial education—boosting Gen Zers’ customer lifetime value in the process.

$5 billion in student debt forgiveness will impact more than 70,000 borrowers, opening up an opportunity for advising them on new financial strategies.

These self-aware young customers know that their mental health drives their financial behavior. They need help making better saving and spending decisions.

Understanding each group’s unique needs can help banks set up their marketing strategies.