Adults born between 1997 and 2012 arrive at money questions earlier, compare prices faster, and distrust traditional advice more often than any cohort measured at the same age. A nationwide online questionnaire completed by 4,000 United States residents in 2022 confirms the pattern. The same study also records the widest gap between perceived skill and actual knowledge on record.

Fifty-four percent of Gen Z respondents report that they already place personal funds in at least one investment vehicle. Twenty-six percent of that group allocate money to individual stocks. Twenty-four percent hold cryptocurrency tokens. Ten percent possess non fungible tokens. Thirty-two percent describe their grasp of tax filing, debt reduction along with credit use as “beginner level.” Among respondents who earn more than fifty thousand dollars a year, fifty seven percent express confidence in their money knowledge. Among respondents who earn less than fifty thousand dollars a year, thirty nine percent express the same confidence. Forty-four percent of Gen Z adults who do not invest state that they avoid the market because they cannot identify a first step.

Rachael Rienzo, age twenty three, studies finance at a state university, tracks equities on her phone, and teaches portfolio theory to classmates. She still refuses to commit her own savings. “I know how to discount cash flows,” she says, “but I also know how much I still owe on my tuition. Risk feels different when the balance in my checking account drops below two hundred dollars.”

The survey labels the overall pattern “a study in contrasts.”

Respondents recognize the limits of their training. Only eighteen percent claim advanced knowledge of credit scores, loan terms, or bankruptcy rules. Forty-five percent claim advanced knowledge of spending plans. Forty-two percent claim advanced knowledge of saving habits. The split originates, in part, from childhood memories. Many respondents watched parents miss mortgage payments, juggle credit card balances, or refinance homes under water. The same respondents now carry student loan balances that exceed the price of a new car. The combination produces an almost compulsive devotion to cash reserves.

Warning

Less than one third of Gen Z respondents rate their understanding of credit or debt as better than “beginner.”

Fast Fact

A 2020 Harris Poll asked 1,000 adults whether they discuss money with relatives or friends. Fifty-three percent of all respondents answered “no.” Seventy-one percent of Gen Z respondents answered “yes” for friends. Sixty-seven percent answered “yes” for family. Both figures exceed the response rate of any older cohort.

Digital assets attract Gen Z at twice the rate of older investors. Twenty-four percent of Gen Z respondents own cryptocurrency tokens. Ten percent own non fungible tokens. Male respondents adopt each product at roughly double the rate of female respondents. Yet when asked to rank their command of twelve financial topics, respondents place cryptocurrency last. The contradiction alarms certified planner Tyler Schaefer of St. Louis. “A client hears that a token rose eight hundred percent in a week,” he says. “He buys with credit. Two weeks later the token falls eighty percent. The client still owes the card issuer eighteen percent interest.”

Gen Z respondents spend six and a half hours per day on a smartphone; they treat YouTube as a primary teacher. Pearson plc, a global education company, reports that video lessons rank second only to live teachers among Gen Z learning tools. The 2022 Financial Literacy Survey confirms the preference. Forty-five percent of Gen Z respondents name YouTube as their main source for money guidance. Thirty-one percent cite conversations with friends or relatives. Twenty-eight percent rely on search engines. Twenty-two percent use TikTok. Eighteen percent visit finance websites.

Social media personalities deliver advice with conviction, charts in addition to background music. The presentation obscures risk. “Personal finance is personal,” Schaefer repeats to clients. “A thirty second clip cannot replace a balance sheet.”

Video platforms remove the historical gatekeepers who once rationed investment counsel to the affluent. A teenager with a data plan now receives the same headlines as a pension fund manager. The shift places responsibility on the viewer. The survey lists “conducting my own research” as the second largest concern among Gen Z respondents. The same group ranks “investing” as the skill they most want to master. “Saving,” “borrowing,” and “managing debt” follow close behind.

The COVID-19 pandemic shaped the cohort’s outlook. The ADP Research Institute reports that seventy eight percent of Gen Z adults experienced disruption to personal routines. Thirty-nine percent lost jobs, received furlough notices, or faced temporary layoffs. The events reinforced the desire for liquid savings and flexible income streams.

Taxes

Among respondents who earn less than fifty thousand dollars a year, thirty seven percent name “how to file my taxes” as the skill they most want to learn. Among respondents who earn more than fifty thousand dollars a year, thirty one percent choose the same skill. Gig platforms, online marketplaces next to remote freelance work produce tax forms that many schools never mention.

Debt

Respondents who earn less than fifty thousand dollars a year express greater worry about credit scores and debt balances than respondents who earn more than fifty thousand dollars a year. Federal Reserve data show that adults under thirty five carried an average unsecured balance of thirty six hundred dollars in 2020. The same age group owed an average of twenty eight thousand dollars in student loans. The figures explain the urgency.

The survey closes with a list of behaviors that separate the highest performing respondents from the rest. The top tier tracks every expense in a written budget. They schedule automatic transfers to savings accounts on payday – they review credit reports from all three bureaus once a year. They refuse to carry a credit card balance beyond the grace period; they contribute enough to an employer retirement plan to receive the full match. None of the actions require specialized knowledge. Each action requires a decision.