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Gen Z Can Build A Following — Not A Budget
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're talking about Gen Z, financial literacy, and a growing knowledge gap that deserves attention. According to a recent survey, 33% of Americans don’t understand inflation or interest rates, and 22% lack clarity on credit scores and compound interest. Read on to see how advisors and companies are working to close the gap.
Plus, a look at all the top stories and market activity from this past week.
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Table of Contents
INDUSTRY CHATTER
If you’ve talked with younger generations lately, you may have noticed something interesting: Gen Z is smart, resourceful (side hustles), and often tech-savvy enough to build an online following before they’ve even opened a savings account. But when it comes to personal finance, the data shows a surprising — and important — gap.
In a recent survey of 2,000 Americans — between the ages of 18 and 27 — the report found that nearly half of Gen Z (46%) struggles to understand cryptocurrency, and 33% don’t understand interest rates or inflation. The survey also found that 28% aren’t clear on compound interest, with 22% struggling with credit scores, mortgages, or loans. And for the tip of the iceberg, 8% aren’t sure how many cents are in a dollar, with some answers ranging from 10 to 50 to “it depends on inflation.”
On one hand, it’s easy to chuckle at the responses and numbers. On the other hand, it also highlights many issues facing the younger generation when it comes to school curriculum, and the ever-changing and fast paced environment that we now live in.
Gen Z is entering adulthood in a financial environment that’s more complex, more digital, and more expensive than what earlier generations faced. Rising costs, uncertain benefits like Social Security, and a flood of online financial content mean they’re trying to learn the rules of a game that keeps changing.
The good news? There’s growing momentum to close the gap. Thirty states now require standalone personal-finance courses in high school — nearly double the number from just a few years ago. And according to USA Today, companies like Intuit are stepping in with free online tools designed to help 50 million students build real-world money skills by 2030.
For advisors, this is not only an education story — it’s a relationship opportunity too. Younger generations don’t lack intelligence; they lack context. They’ve grown up online, and are used to piecing information together from influencers, not experts.
While the use of AI continues to grow, younger generations will still need advisors, whether they realize it yet or not. As mentioned a few weeks ago, clients trust AI with pocket change — not their retirement.
Advisors who step in with judgment-free education, even in small doses, will win trust long before Gen Z accumulates serious assets. And by the time they do? They’ll already know exactly who to turn to.
The financial literacy gap is clear. The question is who will show up to close it.
WEEKLY MARKET RECAP
Wall Street extended its rebound after November's pullback, although with less momentum than the previous week, as risk appetite remained supported by expectations of another Federal Reserve rate cut.
Investors widely expect the Fed to deliver a 25-basis-point cut on Dec. 10 — the third consecutive reduction — with market-implied odds approaching 90%.
Economic data released throughout the week painted a mixed picture. ADP reported that private employers cut 32,000 jobs in November, while Challenger, Grey & Christmas recorded 71,321 announced layoffs last month.
However, initial jobless claims dropped sharply in the last week of November, falling 27,000 to 191,000, according to the Labor Department. The holiday week — typically prone to swings — still produced a fourth consecutive decline, with filings undershooting the 220,000 estimate and hitting their lowest point since September 2022.
On the positive side, the Fed's preferred inflation gauge shows no signs of re-accelerating, while consumer sentiment posted a welcome rebound after touching recession-like levels in November.
September's core Personal Consumption Expenditures price index — released weeks late due to the government shutdown — slowed from 2.9% to 2.8% year over year, marking the first deceleration in four months.
Meanwhile, the University of Michigan's consumer survey showed the headline sentiment index jumping from 51 to 55, the highest since August.
Joanne Hsu, director of the Surveys of Consumers, said the modest improvement was "concentrated primarily among younger consumers" and driven by a 13% increase in expected personal finances.
Yet, while inflation expectations cooled slightly from November, consumers still foresee price growth running well above the Fed's 2% target.
"The overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices," Hsu said.
On Wall Street, Microchip Technology (MCHP) was the S&P 500’s top weekly performer, up 24%, following upward revisions to earnings. On the downside, Paramount Skydance (PSKY) was the week’s biggest laggard, sinking 14% — including a 7% drop Friday — after Netflix (NASDAQ:NFLX) announced Warner Bros. (WBD) had accepted its acquisition offer, pending regulatory approval.
Looking ahead to 2026, investors continue to anticipate at least two additional Fed rate cuts, driven partly by expectations of a leadership change at the central bank.
Chair Jerome Powell's term ends in May, and Kevin Hassett — the current National Economic Council director — is widely seen as the frontrunner for the role, with markets viewing him as a notably more dovish voice that places greater emphasis on labor-market strength than on inflation risks.
THE WEEK AHEAD
Economic Data
Monday: No major reports
Tuesday: Job openings, NFIB optimism index
Wednesday: FOMC decision, Powell press conference, employment cost index
Thursday: Initial jobless claims, trade deficit
Friday: Wholesale inventories, fed speeches (Paulson, Hammack)
Earnings
Click here for the full calendar of economic data and earnings reports.
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