Each generation defines itself in its own way, bringing its perspective, skill sets and values to the table in the workplace and society. Generation Z (people born roughly between 1996 and 2010) is no different. Insights by McKinsey reveal that Gen Z are known for their online lifestyles, tracking on average six or more hours daily on their phones. They turn to the internet as a part of their decision-making process, whether buying an inexpensive everyday product or investing in their financial future.

Generation Z currently makes up roughly 20 percent of the Canadian workforce, and by 2030, that number is expected to grow to 30 percent. As this crucial demographic ages into the workforce and replaces the retiring generation of baby boomers, workplace initiatives must evolve away from a one-size-fits-most approach to content tailored specifically for this digitally savvy generation.

Human capital management (HCM) professionals must consider their audience when building programs to serve their coworkers. Initiatives geared toward financial literacy are no different, and using insights from Generation Z can help guide these initiatives and ensure you are reaching the intended demographic.

Finfluencers are the future

Because Generation Z spends so much time online, the content they consume is bound to influence them. Enter the finfluencer, who shares financial advice on budgeting, money trends, investing, crypto and more on social media. While many people posting financial content on social media are accredited professionals, other finfluencers are celebrities or everyday people sharing a special interest.

Rhodri Preece, CFA, Senior Head of Research, CFA Institute says, "Many finfluencers inadvertently provide financial advice that may be subject to regulatory scrutiny or that violates applicable laws. Their [desire] to demystify finance [for their audiences] frequently brushes against regulatory barriers, blurring the line between casual unregulated investment ideas and regulated financial advice." CFA Institute's report, Finfluencer Appeal: Investing in the Age of Social Media, offers recommendations to help better guide financial decisions in the age of the influencer, including advocating that social media platforms, investment companies and regulators take additional responsibility and control surrounding financial wellness social media content.

Effective workplace financial education for Gen Z (and for all who seek advice online) should include an enhancement of financial literacy efforts with specific emphasis on training people to look at the information they receive online with a critical eye, pinpointing the potential motivations of the person providing financial advice, their qualifications and education, and the overall credibility of their content.

Different motivations

The McKinsey data points toward idealism and a self-identification as inclusive consumers as a part of the Gen Z profile, with social responsibility surrounding climate change, greater equity, purpose and accountability as driving motivational forces.

Nisrina Mahardhika works in administration in the banking sector and has an educational background in public relations. She is also a part of the Gen Z workforce. Mahardhika told HCM Dialogue that she's observed a lot of fear and trepidation about planning for the future among her peers. She adds that many don't understand the point of saving for retirement or a home because they know they won't be able to afford it, and instead save for experiences and focus on the present. As such, she recommends that financial literacy programs geared to Gen Z focus more on the present with questions like: How can I afford to rent in a big city? How can I fund a major trip? Or how can I afford a life that offers flexible work hours and volunteerism?

Assumptions and misconceptions

Mahardhika says, "People assume Gen Z are lazy when it comes to seeking financial literacy, but it's more about information overload." She feels that financial literacy efforts should be geared to helping people and teaching them to prioritize credible information from educated sources. She's learned that some of her peers don't know simple things about managing their finances because they were never taught it in school. She provides the example of a friend who didn't know that you could make an appointment at a bank to discuss how to better meet your financial goals.

Making connections and starting education early

Mahardhika suggests that the first step to providing financial education in the workplace to her generation involves reaching them where they already are – online. This can be done by working with a finfluencer partner or financial institution to teach people about contribution matching programs and working toward financial education for youth in high schools and post-secondary institutions.

She reiterates the same messaging as the CFA Institute report, recommending that firms hiring professionals or finfluencers to provide financial advice content for their employees or customers should ensure those offering advice are qualified professionals, who adhere to regulations such as disclosing any potential conflicts.

Same education, different goals

The end goal behind the financial planning process may differ slightly from generation to generation, but the education required to meet financial goals remains the same.

Financial education can be geared to multiple generations by utilizing charts showing the profound impact of investing early, workplace benefits matching and overall budgeting. The goal may be world travel or a gap year instead of home ownership or early retirement. It can also include topics surrounding sustainable or ethical investments, something that Gen Z values.

Mahardhika highlighted the potential of game-based learning for financial literacy education. Language learning provider Duolingo has a learning community of over 500 million users. Think of the potential when it comes to gamifying financial literacy.

If you build it…

Overall, when planning financial education for any staff, a preparatory survey on financial goals, questions and concerns can help inform your content. Following the sessions, ask participants what they'd like to learn more about, what they found most interesting and what areas they feel were missed.

For those who aren't ready or don't have the budget to head online for educational training, lunch and learn events or training sessions during the workday can be effective ways to reach people for face-to-face learning. Benefit providers may also provide educational training for staff at little-to-no additional cost.

Being open to change and adjusting approaches based on the wants of your employees is a great starting point.





Enter some text...

Did you find this article useful?