While millennials, aka Generation Y, are receiving the lion’s share of attention in the media, Generation Z is maturing and beginning to snare some of the spotlight. There is no universal agreement on when this newer generation begins, but most put the date between 1995 and 2000. Gen Z is still coming of age and does not yet have the financial footprint that older generations have; its members’ financial habits are just now being discovered and may even change in the future. The oldest of them are finishing up college and getting started in the workforce.

Generation Z is, according to the consulting firm Bridgeworks, about 61 million strong. It is being watched closely, as it will likely drive innovation in teaching tools and learning methods. Having grown up with a constant awareness of financial and environmental crises, ubiquitous social media, and opportunities enabled by technology, Gen Z presents challenges for educators.

With that in mind, let’s look at some major challenges that providers of financial education will need to address to reach this latest group of learners.

Challenge 1: They are immersive.

Students of today want learning to be interactive and engaging, according to a 2018 report by Barnes & Noble College. This is to be expected, given how they have grown up with technology that offers multisensory applications. However, for education providers, this is a golden opportunity to offer hands-on, experiential learning that applies learning objectives. A financial education provider, for example, can improve its content to involve not just videos but also interactivity of various kinds. Interactive options include a just-in-time style of content display in which learning is available on-demand when a learner needs it and class discussion opportunities. Neither of these is new in education, but they are more relevant to young learners and probably will continue to be as technology becomes more integrated with daily life.

To keep these students interested, it helps educators to publish bite-sized content rather than long articles. A challenge lies in how to provide comprehensive coverage while at the same time respecting the need for that bite-sized approach. Is all financial education even able to be served up in this way? How can you break it up into short, engaging segments while at the same time providing full coverage of content?

Challenge 2: They are socially aware.

Gen Z has a high level of awareness of major issues in the world. Having had more access to information than previous generations, this information has been integrated into their social media via postings, newsfeeds, shared videos, and the like. This generation feels a pressing need to be involved in the solution to many of society’s ills. One area for that is socially responsible investing, which allows idealists to put their money where their mouths are.

Challenge 3: They want to help create content.

Gen Z has grown up with content creation tools. Social media alone has enabled young people to write, videotape, and share their own content across the world at the touch of a button. They have become comfortable with being co-creators of content. Financial education providers might benefit from incorporating this characteristic into their efforts.

Challenge 4: They are conservative with money.

Although Gen Z is overwhelmingly liberal on social issues, it is cautious and conservative on money matters. For many reasons, such as the high cost of education and housing and awareness of financial crises, this generation is frugal. Financial literacy already stresses the importance of responsible money management, but Gen Z is more apt to resonate with that message. Also, programs that cost a lot of money may therefore not find much success with this generation.

Challenge 5: They are social.

According to a recent report from the marketing agency Hill Holliday, content is the chief use of social media, and Snapchat and Instagram are among Gen Zers’ top venues, which testifies to the value this generation puts on graphics. Slightly over half say that they use social media almost constantly. A social element, even one involving collaboration, is a must for reaching Gen Z. As well, the report notes that Gen Z likes to see itself represented in the content it views. This is normal for all age groups, but if your content is several years old already, does it speak to this group of consumers?

Challenge 6: They are independent and innovative.

The Great Recession and the abundance of technology have taught Generation Z the value of independence, and this has led to an entrepreneurial desire. A study by Monster found that nearly half of Gen Z wanted to own their own business, compared to just a third from other generations. Technology and the opening up of niches make these dreams more possible than was the case with earlier generations. Business ownership is thus an area where financial education providers can serve this generation.

A final thought

Exactly how much of these characteristics will endure remains to be seen as Generation Z matures. One thing that is certain, though, is that this new group of consumers is going to change the way financial educators produce and offer financial literacy.