As Gen Z emerges as a key demographic in the financial world, credit unions and other financial institutions have a unique opportunity to form lasting relationships with this generation. Gen Z, born between 1997 and 2012, is known for being financially cautious and digitally savvy. Growing up during the Great Recession and the COVID-19 pandemic, they’ve experienced significant economic uncertainty, shaping a financial outlook that prioritizes security and informed decision-making. One of the most effective ways credit unions can engage this generation is by becoming a hub for financial literacy. Here’s how this strategy can benefit both Gen Z members and the institutions serving them.

1. Meeting a Critical Need

Despite their caution, many Gen Zers admit to feeling ill-prepared when it comes to managing their finances. A study by TIAA found that only 16% of Gen Zers were confident in their financial literacy skills, with many admitting that they didn’t feel equipped to manage student loans, credit, or budgeting. Additionally, the FINRA Investor Education Foundation revealed that nearly 60% of Gen Z struggles with basic financial literacy.

By offering tailored financial literacy programs, credit unions can meet this crucial need. A standout example is BECU (Boeing Employees' Credit Union), which created a Gen Z-specific initiative called the Financial Health Check. This program offers personalized financial coaching and tools that help members build a strong foundation, addressing everything from credit scores to budgeting and debt management. Credit unions that provide similar resources not only help Gen Z members navigate their financial journeys but also build trust and position themselves as trusted advisors.

2. Leveraging Digital Platforms

Gen Z lives online, and any effort to engage them must have a strong digital component. According to Business Insider Intelligence, 98% of Gen Z owns a smartphone, and they spend an average of 10 hours per day online. Financial institutions should prioritize making financial education accessible through online platforms, social media, and mobile apps. Short, informative videos, interactive budgeting tools, and real-time financial advice can resonate with Gen Z, who prefer to learn in quick, digestible formats.

A great example is Greenlight, a mobile app designed specifically for younger audiences that helps users learn about saving, investing, and spending responsibly. It provides financial education in a format that appeals to Gen Z’s digital preferences. Credit unions can build their own digital hubs with resources like these, offering content that is both informative and engaging, such as quizzes, infographics, and social media campaigns centered on financial tips.

Additionally, credit unions like Navy Federal Credit Union have tapped into popular platforms like Instagram and TikTok to offer financial tips, leveraging the social media spaces where Gen Z spends time. This helps meet Gen Z where they are, while also offering value that builds long-term loyalty.

3. Promoting Inclusivity and Values

Gen Z is driven by values, especially those surrounding social responsibility, inclusivity, and transparency. Financial institutions that authentically align with these values can win over Gen Z in ways that traditional marketing efforts may not.

A great example is Patelco Credit Union in California, which focuses on financial inclusion by offering literacy programs designed for underserved communities. Patelco’s efforts include workshops for minority groups, immigrants, and those with limited access to traditional banking. They offer multi-language financial literacy resources to ensure inclusivity across different member demographics, which resonates with Gen Z’s desire for equity and social justice.

Credit unions can further align with Gen Z values by tying financial education efforts to community initiatives. By highlighting how improved financial literacy can empower underserved populations and create economic opportunity, credit unions demonstrate a commitment to broader social good—something that matters deeply to this generation.

4. Fostering Long-Term Loyalty

The goal of financial literacy initiatives is not only to help Gen Z make informed decisions but also to create lifelong relationships. Financial literacy can be the foundation upon which trust is built. As these young adults experience success in managing their finances—whether it’s paying off student loans, building an emergency fund, or saving for a home—they’ll remember the role their credit union played in their financial journey.

A prime example of this is the Cooperative Credit Union Association (CCUA), which partners with schools to teach financial literacy to students. Through hands-on learning, CCUA helps future members understand how credit unions can support them throughout life’s major financial milestones. By establishing relationships early, credit unions can build a strong bond with Gen Z members as they transition from students to working adults.

Moreover, institutions like Navy Federal Credit Union have introduced tiered financial literacy programs where members progress through different levels of financial knowledge. This not only keeps members engaged but also supports their evolving financial needs, helping to create loyalty that extends into adulthood.

5. Encouraging Financial Empowerment

At its core, financial literacy is about empowerment. When Gen Z feels empowered to take control of their financial future, they’re more likely to engage with financial institutions that support this empowerment. Credit unions can amplify this sense of autonomy by providing tools and guidance that enable members to make decisions with confidence.

For example, Andrews Federal Credit Union developed a comprehensive program for Gen Z that includes an interactive learning center, personal financial assessments, and one-on-one coaching. By offering personalized advice that speaks to individual goals—whether it’s paying off student loans, building credit, or starting a business—credit unions can create tailored experiences that empower members to succeed financially.

6. Conclusion: A Win-Win Approach

Becoming a hub for financial literacy allows credit unions to not only address the financial needs of Gen Z but also cultivate meaningful, long-term relationships. By offering value beyond traditional banking services, credit unions can build trust, foster loyalty, and stand out as leaders in empowering the next generation of members.

With financial literacy programs that meet Gen Z where they are—whether through digital platforms, social initiatives, or personalized guidance—credit unions can be more than just a financial service provider. They can become a key partner in helping Gen Z achieve financial independence, making them members for life.