You Don’t Need a Bank: Gen Z Financial Literacy and Credit Unions

Generation Z (Born 1997 – 2012ish, it changes depending on who you ask) is stepping into the financial world with more tools—and more challenges—than any generation before. And for many, it can feel like things are looking bleak. Since Gen Z financial literacy isn’t always prioritized in schools, let’s paint the picture for you:

Gen Z is navigating student loans (which have skyrocketed in the last few decades), rising rent, a transition to mostly digital banking, and an overwhelming sea of questionable financial content on social media. Why not add complex identity fraud and financial scams, a housing market that has been pushing out buyers under 30 years old, and complexities arising from the ubiquity of AI.

While you’re incredibly tech-savvy, Gen Z is infrequently provided the kind of real-world financial education that helps turn knowledge into action. If your school doesn’t prioritize teaching even basic financial concepts like home equity and compounding interest, how can you be expected to make smart, informed decisions about what financial moves to make?

That’s why Gen Z financial literacy is more important than ever.

At Firefighters Community Credit Union (FFCCU), we believe financial literacy isn’t just about budgeting—it’s about setting you up to succeed: building confidence, aligning with values, and making informed decisions. And as those of you in Gen Z begin to take charge of your financial futures, credit unions can be the perfect partner.

Gen Z Financial Literacy and Understanding Current Challenges

Gen Z is entrepreneurial, diverse, and values-driven—but also facing serious financial stress:

• Student loan debt and rising tuition
• High cost of living and inflation
• Late home buying
• Job market uncertainty
• Confusing or misleading financial info online

According to a 2023 report by Experian, Gen Z carries an average of $20,000 in debt—and over 40% of respondents said they feel unprepared to manage personal finances. That’s where Gen Z money habits start to take shape—and where guidance and the right tools are key.

Gen Z Financial Literacy – Why it Matters

Equipping young adults with money skills early on sets them up for success in the real world. Effective financial education empowers you to:

• Build and manage credit wisely
• Avoid debt traps and high-interest loans
• Budget with purpose, not guesswork
• Set goals for big purchases, travel, or long-term savings
• Spot financial misinformation on social media and dubious sources like ChatGPT

More than anything, it provides confidence and clarity—to manage money on your own terms.

What Gen Z Wants in a Financial Institution

It’s more than just pushing Gen Z financial literacy – many banks haven’t bothered to understand what their “future customers” needs and demands are. Members of Gen Z describe looking for the following in a financial institution (beyond a convenient, functional app and zero maintenance fees):

• Transparency, not sales gimmicks
• Digital tools with human support
• Ethical banking that reflects their values
• Community investment over corporate profit

In short, you don’t want to be exploited simply because everyone needs a checking and savings account to function in the modern world. Eventually, you’ll probably need a car loan or home loan and you don’t look forward to being lured into an outrageous interest rate simply because it’s your first time going through the process.

That’s why Gen Z and credit unions are a natural match. And sure, that sounds like a pitch, yes, but let me explain…

Credit Union Benefits for Young Adults

That lack of attention to Gen Z financial literacy happening in schools? That could account for why many don’t even know what a credit union is, or how it works! Here are the most important details:

Not-For-Profit

Credit unions are collectively owned, with every person who has deposited money into the credit union having a say in its success. Credit Unions are run by a board of volunteer directors, sure, but there is no individual owner. EVERYONE is the owners and shareholders, credit union leadership exists to make smart decisions that benefit all members.

The most important part of this: a credit union like FFCCU isn’t squeezing you for every cent of profit. Sure, we do the normal things financial institutions do – we do have interest on loans and charge some fees. But unlike banks, credit union fees are often lower or nonexistent, interest rates tend to be lower, deposit yields (money you earn) higher, and there is generally more leeway to approve loans, too. Money earned by a credit union is reinvested within the credit union to offer more products, better options, and lower-interest services. Credit unions exist to benefit the members and help them build sustainable wealth.

Accessible and Online

These days even small credit unions tend to have all the online banking features you expect. There are plenty of members who can count on one hand the number of times they have actually been into a branch! FFCCU’s newly revamped mobile app works seamlessly with our desktop and mobile banking, making it easy and familiar to access your money remotely.

And if you DO need a little more guidance, our friendly, helpful teammates are available through online chat, phone, email, or even in person. As tempting as it can be to just “ask ChatGPT” or trust a charismatic TikTok grifter (not that all TikTok finance personalities are nefarious, but beware someone trying to sell you their book), those sources won’t ever be as reliable as your credit union. Tools like our Dare2Compare give you time and space to speak frankly with a teammate who will look at your specific options and try to help on a personal level.

A Special Account Just for You

To help teenagers (some in Gen Z still are!) FFCCU offers our Club Ignite checking account. You’ll have your own debit card, a better deposit rate than many other accounts, and regular newsletters with helpful articles (including our annual summer jobs guide). It’s both a tailored account and a great resource for Gen Z financial literacy.

Tools to Build Credit

Here’s a conundrum that tends to affect Gen Z: You need to take out a loan to build credit…but nobody will give you a loan without credit…and you’re expected to just HAVE a credit score right out of high school or college? The importance of that always fluctuating number (that is different depending on which credit reporting bureau is being asked!) can make the entire institution of credit feel like a rigged game.

But remember, FFCCU is here to help you succeed. Products like the share secured credit card and share secured loan exist to help build credit from scratch, or improve it after a hardship, and build up your length of credit (another factor they take into account).

Ethical Foundations

Community is right there in the name. FFCCU, like many credit unions, has roots in public service (that’s the firefighter part of the name, after all), labor unions, and other organizations dedicated to collective, community enrichment. We continue that tradition by selecting area charities to support each year, and by contributing to important community events.

Reinvesting in local communities—not corporate shareholders. That means your money stays where it matters most.

Gen Z + Credit Unions: A Smart Financial Fit

Young adults aren’t just looking for a place to stash cash—you’re looking for a financial partner that understands your needs and wants to help solve problems. Credit unions like FFCCU deliver what Gen Z values: honesty, impact, and real support. Whether you’re figuring out how to save, starting a job, or preparing for college, our team is here to help you build the money habits that stick—and grow with you.

Get Started with FFCCU

Ready to take control of your finances? Explore our teen checking/savings account, or visit a branch to learn more.

Financial literacy for Gen Z starts with a strong foundation—and your credit union is ready to help build it.

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