Financial wellness is not just about having money; it’s about understanding how to manage it effectively at every stage of life. From children learning the basics of saving to retirees planning for their golden years, financial literacy is a key determinant of stability and success. Unfortunately, many individuals reach adulthood without fundamental money management skills, which can lead to poor financial decisions, debt, and stress. This gap presents a unique opportunity for banks and credit unions to step in—not only as service providers but as financial educators and lifelong partners.
Early exposure to financial literacy is crucial. Money habits are formed as early as age seven. However, most children lack structured opportunities to learn basic financial principles. Banks and credit unions can offer specialized savings accounts, gamified financial applications (apps), and interactive workshops to introduce kids to budgeting, saving, and spending responsibly. By embracing family banking and implementing financial wellness programs tailored to children, financial institutions can play a pivotal role in enhancing financial literacy and stability; instilling important lessons that will shape their relationship with money.
This generation is navigating their first paychecks, student loans, and credit-building opportunities. Despite these financial responsibilities, many young adults have not received the proper education to make informed decisions that can greatly impact their future. In 2022, only 22.7% of U.S. high school students were required to take a personal finance course before graduation. However, there has been progress in recent years. By 2024, 35 states have mandated personal finance courses for high school graduation, up from 23 states in 2022. This expansion is expected to provide over 10 million additional K–12 students—21% of current students—with guaranteed access to financial education.
While some opportunities for education have been made available, many students are looking for a trusted financial partner who can help them navigate their goals and turn dreams into a reality. Without systemic change in school curricula, the burden of financial literacy falls on parents and, increasingly, financial institutions. Financial institutions can step in by offering youth/teen checking accounts, secured credit cards, and mobile-friendly educational content tailored to young adults entering the workforce or college. By prioritizing financial literacy from an early age, financial institutions can empower the next generation to make informed financial decisions, leading to greater personal financial stability and a bustling economy.
For many, navigating the financial responsibilities of adulthood has not been easy. According to Alkami’s Generational Trends in Digital Banking Study, “73% of millennials (ages 28-44) say the rising interest rate environment has significantly impacted their standard of living… and 65% of millennials report they feel they are living paycheck to paycheck.” Balancing the current macroeconomic environment and their dreams, millennials are in need of a partner who can educate and empower them to achieve their financial goals.
This group is making significant financial decisions—buying homes, starting families, and investing for the first time. However, financial stress remains high, with many lacking knowledge about long-term wealth-building strategies. Banks and credit unions can offer personalized financial planning tools, first-time homebuyer programs, and educational webinars on topics like emergency savings and debt management.
As retirement approaches, individuals face complex financial decisions, including 401(k) management, estate planning, and healthcare savings. Many Americans are unprepared—nearly 40% of parents worry that their children will need financial support into adulthood, demonstrating a broader concern about generational wealth transfer and financial preparedness from a young age. Financial institutions can provide dedicated financial advisors, estate planning tools, and investment management services tailored to this age group.
Many retirees assume their expenses will shrink in retirement—no more commuting, fewer bills, and a simpler budget. However, rising prices are impacting consumers’ expectations and needs for the future. Studies show that both Generation X (Gen X) and baby boomers believe they will need the same or more income in retirement to maintain their standard of living, challenging the traditional 80% income replacement rule.
Seniors require financial solutions that prioritize stability, healthcare funding, and wealth preservation. With increasing longevity, many retirees are concerned about outliving their savings. Financial institutions can assist by offering senior-friendly digital banking solutions and fraud protection services.
Millions of young consumers enter adulthood without essential money management skills due to a lack of education. This contributes to issues such as rising credit card debt, poor retirement savings, and financial anxiety. Banks and credit unions have a significant opportunity to step in as financial mentors. By addressing financial wellness across all life stages, financial institutions can build trust and loyalty, ultimately securing the primary banking relationship.
Financial institutions can play a crucial role in fostering financial literacy from an early age by offering Children’s Savings Accounts (CSAs) that encourage long-term savings habits, providing gamified financial apps that make money management engaging and interactive, and partnering with schools and community programs to deliver personal finance workshops for teens.
Additionally, offering products and services that promote financial health will position your institution as a trusted advisor. Secured credit cards not only assist users in building or rebuilding their credit history but also promote better savings habits. By requiring a security deposit, these cards encourage discipline, as users must manage their spending within the deposited amount, leading to more responsible financial behavior. Furthermore, secured credit cards often serve as a gateway for individuals with limited or poor credit histories to access mainstream financial services. Over time, responsible use of secured cards can lead to improved credit scores, enabling consumers to qualify for unsecured credit products with better terms; enhancing their overall financial health.
Credit scores are one of the most important factors in a consumer’s financial health, influencing their ability to secure loans and mortgages. Yet, many consumers don’t actively monitor their credit until a problem arises. Proactive credit score monitoring is essential to maintaining financial stability and improving financial literacy. By incorporating credit score monitoring into digital banking solutions, financial institutions can empower consumers with actionable next steps to improve their credit while unlocking insights that supercharge targeted marketing efforts.
Navigating major financial milestones—such as buying a home, raising a family, and preparing for retirement—requires tailored support and guidance. Financial institutions can help by offering products designed to ease major life transitions and embedding financial wellness features into their digital banking solutions that help account holders manage expenses, savings, and investments.
Digital innovation plays a key role in enhancing financial literacy and decision-making. Artificial intelligence (AI)-powered tools can analyze spending habits and deliver personalized financial recommendations, while automated savings features help account holders effortlessly reach their goals. Virtual assistants can provide on-demand financial guidance, ensuring that advice is always within reach 24/7. By integrating these solutions, financial institutions can become lifelong partners in their customers and members’ financial wellness journeys.
Digital banking solutions are revolutionizing financial education by making resources more accessible and engaging. Features such as:
Banks and credit unions have an opportunity to redefine their roles—not just as financial service providers but as lifelong partners. By addressing the gaps in financial education, they can empower individuals and families to achieve financial security while securing long-term loyalty. Financial wellness is a journey that spans generations, and the institutions that prioritize education, accessibility, and personalized banking services will emerge as industry leaders.
