Generation Z and Financial Literacy: A Comparative Analysis of Generational Competencies

Generation Z and Financial Literacy: A Comparative Analysis of Generational Competencies

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This paper examines generational differences in financial literacy and their competencies in the Czech Republic, with a focus on Generation Z. Financial literacy is assessed across three components: financial knowledge, financial behaviour, and an overall financial literacy score. This analysis includes four generations: Generation Z, Millennials, Generation X, and Baby Boomers, based on 984 Czech respondents. Results show that Generation Z scores significantly lower in financial knowledge and overall financial literacy compared to Generation X and Baby Boomers. However, no statistically significant difference is found between Generation Z and Millennials, indicating similar levels of financial literacy between these younger generations. Interestingly, no significant generational differences were observed in financial behaviour. This might suggest that while Generation Z lacks theoretical financial knowledge, they engage in financial behaviours comparable to older groups of the population. These findings point to a shift in how financial knowledge is acquired among younger generations. As digital natives, Generation Z often relies on informal online sources such as social media and “finfluencers”, which may offer practical tips but lack depth and reliability. Although fintech tools may help support good financial habits, the knowledge gap remains a concern. Given the growing financial autonomy of this generation, this paper highlights the need for better financial literacy to ensure informed decision-making and long-term economic stability.

This paper examines generational differences in financial literacy and their competencies in the Czech Republic, with a focus on Generation Z. Financial literacy is assessed across three components: financial knowledge, financial behaviour, and an overall financial literacy score. This analysis includes four generations: Generation Z, Millennials, Generation X, and Baby Boomers, based on 984 Czech respondents. Results show that Generation Z scores significantly lower in financial knowledge and overall financial literacy compared to Generation X and Baby Boomers. However, no statistically significant difference is found between Generation Z and Millennials, indicating similar levels of financial literacy between these younger generations. Interestingly, no significant generational differences were observed in financial behaviour. This might suggest that while Generation Z lacks theoretical financial knowledge, they engage in financial behaviours comparable to older groups of the population. These findings point to a shift in how financial knowledge is acquired among younger generations. As digital natives, Generation Z often relies on informal online sources such as social media and “finfluencers”, which may offer practical tips but lack depth and reliability. Although fintech tools may help support good financial habits, the knowledge gap remains a concern. Given the growing financial autonomy of this generation, this paper highlights the need for better financial literacy to ensure informed decision-making and long-term economic stability.

Financial Knowledge, Financial Behaviour, Financial Literacy, Generation Z, Millennials, Generation X, Baby Boomers

Financial Knowledge, Financial Behaviour, Financial Literacy, Generation Z, Millennials, Generation X, Baby Boomers

MUCSKOVÁ, M.; MIČÁK, P.; NĚMEČEK, K.

2026

03.09.2025

Faculty of Economics, Technical University of Liberec

Liberec

978-80-7494-747-6

Proceedings of the 17th International Conference

151

162

314

https://lef.tul.cz/wp-content/uploads/2025/09/LEF_2025_full_proceedings.pdf