New research from Cleo, an AI-driven financial assistant, reveals that members of Generation Z are leaning heavily on artificial intelligence and family as they navigate a raft of challenges in handling their money.
According to the survey, a significant 61 percent of Gen Z respondents are using AI tools to manage their finances, and 51 percent rely on parental advice. At the same time, less than 15 percent of that young cohort say they seek out financial information from banks.
The tendency towards discussing financial concerns with machines rather than friends or advisors also showed up in another survey Cleo conducted in May, where 7 percent of Gen Z participants said they feel most comfortable having conversations with a financial assistant app. That survey also found over two-thirds of Gen Z (72 percent) find it difficult to talk about their finances, with 40 percent stating they would never discuss their debts with others.
Cleo’s latest survey paints a challenging portrait of Gen Z, with 61 percent of respondents admitting they sometimes feel like they’re running out of money and need to ask for help. Underscoring family’s continuing influence in their financial decisions, the same percentage of respondents said their parents or guardians managed their finances up until they entered college.
Generation Z savers are apparently keeping a tight handle on their finances, with 63 percent of those surveyed saying they have a monthly budget that they track regularly. That doesn’t mean they don’t have financial regrets, however, as 80 percent reported buyer's remorse over non-essential purchases outside their budget, neglecting to pay bills, and not contributing to savings goals, among other reasons.
While just under three in five (58 percent) claimed they rarely buy things on impulse, 40 percent admitted to spending between $100 and $200 monthly on non-essentials.
A from Cleo in March offered another peek into how Gen Z is altering their spending habits. That research found 79 percent of respondents have changed their spending behavior in the past one to two years, with two-thirds now prioritizing food, travel, entertainment, electronics, fashion or beauty, and personal fitness. Still, saving remains a priority for many, with 73 percent of respondents putting aside money regularly, and 40 percent doing so on a weekly or monthly basis.
Four-fifths of quarterly survey respondents are worried about the costs of living, with inflation emerging as the top financial pain point.
For advisors struggling under the weight of their tech stacks, creating a seamless approach to ingest, translate, store, and synchronize data can be the key to growth and client satisfaction.
The financial advice industry has waited for years to see if the wirehouse would embrace RIAs.
Paul Atkins pledges to address potential conflicts as the Democratic firebrand's open letter, along with filings around his financial interests, raises questions.
Partisan tensions, reducing inefficiencies and a 'guarantee' to senators.
In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies
