Although financial literacy is low among all generations, it is particularly low among Gen Z. According to Moneyzine, Gen Z has the lowest financial literacy rate among all generations, with only 38% answering basic financial questions accurately. As Gen Z steps into adulthood, financial decisions are becoming a part of everyday life—from managing student loans  and credit cards to building savings and exploring investment opportunities. Yet despite being one of the most tech-savvy and entrepreneurial generations, many Gen Zers report feeling unprepared to make informed financial choices.

At First Hawaiian Bank, we believe that financial literacy is the key to long-term success, especially for young adults navigating today’s fast-changing economy. Whether you’re in school, starting your first job, or launching your own business, understanding how money works puts you in control of your future.

So, what exactly is financial literacy? 

Financial literacy is the understanding of how to effectively manage your money-how to budget, save, invest, manage debt, and plan for the future. It’s not just about numbers or spreadsheets-it’s about making informed decisions that support your goals, reduce stress, and help you work towards financial freedom.

With a strong grasp on financial literacy, you are better equipped to handle financial challenges, take advantage of opportunities, and make informed decisions that can set you up for success. Gaining a deeper understanding of financial literacy builds confidence and empowers you to take control of your financial journey.

Why does financial literacy matter for Gen Z?

You’re going to be faced with many important financial decisions ahead and making informed financial decisions today can help you improve your money management, reduce your debt, and take control of your future. With a greater understanding of your finances, you’ll be empowered to take on new opportunities and be prepared to:

• Building a strong foundation. Learning how to budget, track spending, and set savings goals now can help you avoid common pitfalls like credit card debt or overdraft fees. Starting young and strong sets the stage for long-term financial health.
• Navigating student loans and debt. Many Gen Zers are already dealing with student loans or will be in the near future. Understanding interest rates, repayment options, and credit scores can help you manage debt wisely and avoid financial setbacks.
• Tools and technology. As a digital-native generation, you have access to powerful financial tools—from budgeting apps to investment platforms. Financial literacy helps you use those tools with confidence and make the most of them.
• Developing financial freedom. Whether your goals include buying a car, traveling, starting a side hustle, or retiring early, financial literacy gives you the skills to plan, save, and invest wisely to turn those dreams into reality.

How to Start Building Your Financial Knowledge

Here are steps that you can take to boost their financial literacy:

1. Track your spending. Use a banking app like First Hawaiian Bank’s mobile app to see where your money goes each month.
2. Create a budget. Set spending limits based on your income and goals.
3. Start saving. Even small contributions to a savings or emergency fund can add up over time and provide you with a cushion.
4. Understand credit. Learn what affects your credit score and how to build credit responsibly.
5. Explore investing.  Start learning about stocks, ETFs, and retirement accounts like Roth IRAs, even if you’re not ready to invest yet.
6. Ask questions. Don’t be afraid to seek advice from trusted sources, including financial advisors, or your local bank team.

First Hawaiian Bank is Here to Help

At First Hawaiian Bank, we’re committed to supporting your financial journey. We offer tools, resources, and guidance tailored for you—whether you’re opening your first checking account, exploring savings options, or curious about investing. 

Check out our Resource Center or visit your local branch to speak with our team.

Financial literacy isn’t just a skill—it’s a lifelong advantage. The sooner you start learning, the better prepared you’ll be to face challenges, seize opportunities, and create the future you want.

Sources:
https://moneyzine.com/personal-finance/financial-literacy-statistics/
https://gflec.org/initiatives/financial-literacy-and-well-being-in-a-five-generation-america/