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The Generational Realities Driving Financial Literacy

Posted on April 7, 2026

April’s designation as Financial Literacy Month offers an opportunity to revisit a familiar question: how can we ensure employees have access to — and a real understanding of — how their voluntary benefits support financial wellness?

It’s the right question. But our latest Workforce Financial Stability Score¹ research reveals another one worth asking — and the answer could change the strategic conversations you’re having with employers. How do the different generations in the workforce view and manage their financial health?

Closing out 2025, the data shows that while overall financial stability held relatively steady, managing expenses between paychecks remained a pressure point. Across all working American segments², from Financially Healthy to Financially Challenged, 60% of them describe a financial outlook shaped by a short-term focus. Looking deeper into the data through a generational lens adds an important dimension, helping explain how employees at different life stages engage with financial guidance and approach benefits decisions.

Same pressures. Different responses.

The biggest generational differences show up in how employees respond to financial stressors and where they turn for guidance.

Older Gen Z: Optimism alongside rising debt stress
Older Gen Z workers ended 2025 with one of the strongest overall financial stability scores (65.7, up 4.8 points year over year). Yet nearly half (48%) report increased stress related to personal debt, and 37% say they used or borrowed from credit cards this year — a 10-point increase over last year. At the same time, they remain among the most confident about their personal financial outlook (67%).

As the generation most likely to seek out and discuss financial information, older Gen Z workers are receptive to guidance as they navigate financial pressures.

Millennials: Stretched thin but confident
At the end of 2025, Millennials’ financial stability score remained solid at 61.5, well above a year ago. Yet, signs of tradeoffs are clear. Thirty-nine percent report using or borrowing from credit cards in 2025 (up 8 points from 2024), and fewer are making contributions to retirement accounts compared to last year. Still, 59% express confidence about their personal financial outlook for the coming year.

Millennials actively seek financial information, lead all generations in using AI tools (27%), and, along with their Gen Z counterparts, are more likely to engage with employer-provided resources (19%).

Gen X: Progress on paper, caution in practice
Gen X’s financial stability score reached 56.7 in Q4 2025, up 4.4 points over 2024. While they join the other generations in prioritizing covering everyday expenses, they are less confident in their short-term financial planning and decisions. Compared to other generations, Gen X workers are less likely to have used or borrowed from credit cards (31%), with 41% reporting that they are paying more than the minimum monthly payments to reduce their balances.

A self-reliant group, 62% of Gen X is optimistic about their personal financial outlook for the year ahead.

Younger Baby Boomers: Quiet vulnerability
Younger Baby Boomers are the only generation to see a year-over-year decline in their financial stability score (55.8, down two points from 2024). More than half report making progress paying down debt (52%). At the same time, 41% contributed to emergency savings and 38% to retirement accounts. Yet 38% of younger Baby Boomers used or borrowed from credit cards in 2025 — a sharp increase from 17% in 2024.

As the least confident generation about their personal financial outlook, younger Baby Boomers are also the least likely to seek out information or discuss their finances with others.

4 ways to turn the insights into improved financial literacy

The generational views and behaviors highlight opportunities to help employees connect the dots between their financial health and their benefits options. Producers play a crucial role in helping employers optimize their benefits strategies and increase employee understanding and utilization.

1. Lead with the value not coverage details.
   For employees focused on covering everyday expenses, connect benefits to real-life impact. Rather than leading with what’s covered, frame Supplemental Health benefits communications around the lump-sum payments paid directly to the employee after an injury from a covered accident or diagnosis of a covered critical illness. That way, employees can clearly see how the benefits can help address immediate financial concerns.
2. Connect income protection to debt prevention.
   Older Gen Z and Millennials navigating rising reliance on credit may understand Disability Income insurance most clearly when it’s positioned around avoiding additional debt. Craft educational content around how the coverage replaces a portion of income when an employee is unable to work, helping them manage ongoing expenses, possibly without tapping into savings or credit.
3. Broaden the perception of Group Whole Life Insurance.
   For Gen X and younger Baby Boomers balancing financial progress with uncertainty, Group Whole Life Insurance offers more than a death benefit. Positioned as a financial strategy tool, it can help support stability and long-term resilience, particularly for employees managing debt or seeking to minimize late-career financial shocks.
4. Reflect generational realities in year-round communications.
   Financial literacy improves when employees see themselves in the message. That doesn’t mean employers have to create generation-specific communications. Rather, within year-round benefits education strategies, they can showcase messages that resonate with different generations. For example, Gen X workers proactively paying down debt may respond to messaging that validates their progress and positions protection as a way to help safeguard it. Or younger Baby Boomers approaching retirement with rising credit reliance and lower confidence may benefit from proactive messages highlighting Group Critical Illness Insurance or Group Hospital Indemnity Insurance, including the coverages’ portability into retirement.

Take a closer look

Financial Literacy Month reinforces a simple truth: benefits can support financial wellness when employees understand their value. Generational perspectives and behaviors are just some of the insights producers can use to boost financial literacy and strengthen client recommendations.

For a deeper dive into the Q4 2025 Workforce Financial Stability Score research findings, explore the full report and keep an eye out for a new webinar this spring providing insights for 2026 and beyond. Plus, sign up for our Worksite emails to get the latest findings and webinar invites delivered to your inbox.