Gen Z Prioritizes Building Good Credit Amid Economic Stress

ImpactWealth.Org presents an in-depth analysis of the latest findings from PNC Bank’s second annual Financial Wellness in the Workplace Report, titled “The Evolving Needs of the Multigenerational American Workforce.”

This comprehensive report, derived from survey data and interviews with over 1,000 U.S. workers and 500 employers, sheds light on the shifting financial priorities and stressors of today’s diverse workforce, particularly highlighting the financial challenges faced by Gen Z.

Rising Financial Stress Across Generations

In the current volatile economic environment, financial stress is increasingly prevalent across all generations of the workforce.

The report reveals that 78% of U.S. employers believe their workers are financially stressed, a significant rise from 71% in the previous year.

This growing concern is exacerbated by the increasing costs of employee benefits, retention challenges, and the evolving demands of a workforce that spans four distinct generations.

Gen Z: Most Stressed and Focused on Credit Building

According to the survey, Gen Z workers, born between 1997 and 2012, are the most stressed about their personal finances, with 76% expressing significant concern.

This generation, many of whom are just beginning their professional careers, has identified building and maintaining a strong credit rating as their top financial priority.

In contrast, older generations such as Millennials, Gen X, and Boomers are more focused on saving for retirement.

Table 1: Top Financial Priorities by Generation

Generation	Top Financial Priority
Gen Z	Building and maintaining good credit
Millennials	Saving for retirement
Gen X	Saving for retirement
Boomers	Saving for retirement

This focus on credit underscores the importance of establishing a solid financial foundation early in life, as credit scores impact many aspects of financial well-being, including the ability to secure loans, rent apartments, and even qualify for certain jobs.

The Importance of Financial Wellness Benefits

The report also highlights the critical role that financial wellness benefits play in retaining younger employees. An overwhelming 92% of Gen Z workers indicated that they are more likely to stay with an employer who offers robust financial wellness programs.

This preference for financial security extends to Millennials, 85% of whom share this sentiment, underscoring the growing expectation for employers to provide resources that help manage personal finances.

Moreover, student debt continues to be a significant burden, particularly for Gen Z and Millennials. The survey found that 54% of respondents across these generations view student loans as the most challenging debt to manage, with 40% of Gen Z workers stating they are “at a standstill” until their debt is paid off.  Thus, the majority of students opt for refinancing student loans to get better interest rates and pay off the debt more or less quickly.

Chart 1: Financial Stress Levels by Generation (Percentage of Workers Stressed About Personal Finances)

[Insert a bar chart showing the percentage of workers stressed about personal finances: Gen Z (76%), Millennials (72%), Gen X (72%), Boomers (59%)]

Access to Financial Planning

Access to financial planning services has become increasingly available, with the percentage of U.S. workers having access to such benefits doubling from 14% in 2023 to 28% in 2024. Despite this improvement, many Gen X workers (born between 1965 and 1980) remain hesitant to seek financial planning services, primarily due to a perceived lack of sufficient income to justify it.

Living Paycheck to Paycheck

The financial landscape for many workers remains precarious, with 60% of U.S. workers reporting that they live paycheck to paycheck. This figure is even higher among Gen Z and Millennials, emphasizing the urgent need for financial education and support from employers.

The Evolving Needs of the Workforce

As the needs of the talent market continue to evolve, businesses must adapt by offering tailored benefits that address the unique financial challenges of each generation.

PNC’s Organizational Financial Wellness team advocates for the development of innovative benefit programs that can help companies attract and retain top talent while enhancing productivity and loyalty.

For a more detailed analysis and to explore the full report, visit PNC’s Workplace Report.

References:

• PNC Bank, “The Evolving Needs of the Multigenerational American Workforce,” Financial Wellness in the Workplace Report 2024.
• Willow Research, Market Research Firm. https://willowresearch.com/

This detailed news story provides a nuanced look at the financial priorities of Gen Z, offering insights into how businesses can better support their employees in a rapidly changing economic landscape.

Also read: Gen Z to Spend $18,000 More on Rent by 30 than Millennials – Study Reveals