Gen Z leans on AI and family for financial guidance

investmentnews.com:

New research from Cleo, an AI-driven financial assistant, reveals that members of Generation Z are leaning heavily on artificial intelligence and family as they navigate a raft of challenges in handling their money.

According to the survey, a significant 61 percent of Gen Z respondents are using AI tools to manage their finances, and 51 percent rely on parental advice. At the same time, less than 15 percent of that young cohort say they seek out financial information from banks.

The tendency towards discussing financial concerns with machines rather than friends or advisors also showed up in another survey Cleo conducted in May, where 7 percent of Gen Z participants said they feel most comfortable having conversations with a financial assistant app. That survey also found over two-thirds of Gen Z (72 percent) find it difficult to talk about their finances, with 40 percent stating they would never discuss their debts with others.

Cleo’s latest survey paints a challenging portrait of Gen Z, with 61 percent of respondents admitting they sometimes feel like they’re running out of money and need to ask for help. Underscoring family’s continuing influence in their financial decisions, the same percentage of respondents said their parents or guardians managed their finances up until they entered college.

Generation Z savers are apparently keeping a tight handle on their finances, with 63 percent of those surveyed saying they have a monthly budget that they track regularly. That doesn’t mean they don’t have financial regrets, however, as 80 percent reported buyer’s remorse over non-essential purchases outside their budget, neglecting to pay bills, and not contributing to savings goals, among other reasons.

While just under three