Gen Z and money: Digital-first, long-term and financially engaged

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How Gen Z is reshaping the future of banking

Generation Z is entering a life stage marked by rapid change: leaving home, starting their first job, and, for some, family. In OECD countries, Gen Z already represents around 27% of the workforce, underlining its growing economic relevance.

In Europe, these transitions happen relatively early. In 2024, young people left their parents’ home at an average age of 26.2 years, while first-time mothers were 29.9 years on average. These milestones often coincide with key financial behaviors such as budgeting, saving, and first-time investing.

At the same time, Gen Z’s financial behavior is fundamentally digital-first. According to a PwC survey of 9,700 consumers across 11 European countries, young adults rely heavily on smartphones and digital services, while traditional information channels play a much smaller role.

This behaviour increasingly extends to financial management. A survey by forsa – initiated by ING Germany and Visa shows that 46% of young Germans already pay via smartphones and smartwatches, while ING data indicates 53% of their Gen Z customers do the same. Digital transactions account for a growing share of everyday spending, highlighting how mobile-first banking is becoming the default for this generation.

The trend extends across Europe. Global research from PYMNTS Intelligence shows that French Gen Z users access mobile banking around 11 days per month, placing it among their most frequent digital activities, alongside social media, messaging, and video streaming.

„Early digital routines shape long-term expectations”, says Dr. Oliver Silbernagel. “Always-on banking enables young people to engage with their finances and develop trust over time”

How Gen Z’s digital habits are reshaping money management

Generation Z is redefining money management as a mobile-first, real-time experience. Growing up with smartphones and social media, this generation expects financial services to be fast, intuitive and always accessible. For banks, transparency, ease of use and speed are no longer differentiators- they are baseline requirements.

This shift is clearly visible in mobile banking adoption. In Germany, 82% of Gen Z respondents use a banking app to keep track of their finances (ING/Visa survey). Among ING customers, 75% access their banking services exclusively through the mobile app, highlighting a shift toward mobile-only banking behaviour.

Digital payments follow the same pattern. More than half of ING’s Gen Z customers pay via smartphone or smartwatch, and digital transactions account for a growing share of everyday spending. At the same time, cash usage is declining: the share of young ING customers regularly withdrawing cash dropped from 49% in 2024 to 38% in 2025, while more than a quarter did not withdraw cash at all within six months.

These developments point to a broader shift toward real-time money management. According to PwC’s European survey, Gen Z relies heavily on digital tools and expects seamless, instant services. In finance, this translates into continuous interaction: checking balances, receiving instant notifications and making payments directly from a mobile device.

As Dr. Oliver Silbernagel adds, “Push notifications for card payments and incoming payments make account activity visible in real time. This helps users keep track of their finances without having to check their balance manually – and supports more informed day-to-day money decisions.”

How does Gen Z save, invest, and manages debt

Generation Z is often perceived as impulsive, but data suggests a more disciplined and forward-looking approach to money management. Many young adults prioritise financial stability early, combining regular saving with long-term investing strategies.

In terms of saving behaviour, Gen Z increasingly uses structured approaches such as automated transfers and savings plans. This reflects a preference for consistency and long-term financial planning rather than short-term spending.

This mindset is especially visible in investing habits. Data from ING Germany shows that a large share of Gen Z customers invest through ETF savings plans, highlighting a shift toward accessible, low-cost and long-term investment strategies.

The popularity of ETFs also aligns with broader industry trends. According to EY’s ETF Roadshow Report, ETFs remain one of the fastest-growing investment vehicles globally. For younger investors, they offer a simple and transparent entry point into diversified, long-term investing.

At the same time, Gen Z is more open to digital investment platforms and alternative assets, reflecting a willingness to explore new financial tools. Combined with the rise of mobile trading apps, investing is becoming a core part of financial life at an earlier stage.

As Silbernagel notes, ING data for Germany shows that Gen Z starts investing early: one third of young ING customers already hold a securities account, and 45% of them invest regularly via savings plans. On average, around €350 per month is invested, with 88% flowing into broadly diversified ETFs — highlighting a clear long-term focus. Even during market volatility, many young investors stick to regular savings plans and use downturns to invest rather than sell.

Where Gen Z learns about money

Generation Z primarily learns about money through digital channels and social media rather than formal education. While they are highly engaged with financial tools, structured financial education often does not keep pace with their needs.

Many young adults report that school provided limited practical knowledge about budgeting, investing or responsible borrowing. As a result, financial education is increasingly self-directed.

Digital platforms play a central role in this process. According to PwC, only 24% of Gen Z rely on traditional media for financial information- significantly fewer than older generations. Instead, social media, online communities and digital content shape how young people understand financial topics and make decisions.

Despite this informal learning environment, financial literacy is a clear priority for Gen Z. Data from the ING/Visa survey shows that 91% consider financial knowledge important, and 52% already feel confident making financial decisions.

"For the first time, we are faced with a generation that is not only digitally native but comfortable with and confident in constantly learning new things: they are open to education but are rightly resistant to obfuscation and rigidity. Which leaves traditionally wooden, over-formal banking Terms and Conditions and static, seemingly outdated products out in the cold”, says Leda Glyptis, Advisor, Author, Speaker and Influencer. “Gen Z are keenly aware of the need for financial literacy and are hungry for it. If traditional lenders and wealth managers don't meet this set of customers where they are then, they will learn from those who do, borrow from those who do, and save with those who do. With all the danger and opportunity that comes with this.”

For financial institutions, this creates both an opportunity and a responsibility. Providing accessible financial education, clear communication and intuitive digital tools will be key to building trust and supporting informed financial decision-making.

Overall, Gen Z is shifting financial education from institutional learning to continuous, digital self-education.

What does this mean for the future of banking?

Generation Z is redefining the relationship between customers and financial institutions. Digital-first behaviour, early investment habits and a strong interest in financial literacy are shaping how this generation approaches money.

“For banks, the implication is clear: user experience, digital banking tools and accessible financial education will play an increasingly important role in building long-term customer relationships. Institutions that successfully engage Gen Z today will likely shape the banking landscape of tomorrow,” Silbernagel concludes.