A modern workplace brings together employees from Baby Boomers to Gen Z, creating a unique blend of perspectives and financial experiences. This diversity is a powerful asset, but it also exposes a significant challenge: persistent gaps in financial literacy across age groups. Studies show that employees enter the workforce with very different levels of financial understanding, often shaped by their generation’s economic context and access to financial education. These gaps affect personal well-being and can have a real impact on workplace productivity, stress, and talent retention. Recognizing and addressing generational differences in financial literacy is vital for employers who want to empower every employee and build a healthier, more productive organization.

Understanding the Generational Divide in Financial Knowledge

Each generation’s approach to money management is influenced by its historical context, technology, and life stage. The 2025 TIAA Institute-GFLEC Personal Finance Index found that financial literacy in the U.S. remains stagnant at 49% correct responses overall, but key generational differences remain pronounced:

Baby Boomers: Experienced but Not Immune

Baby Boomers tend to score higher than younger groups, with an average of 55% correct answers on financial literacy questions, according to TIAA. Their experience often translates to stronger traditional financial habits, such as saving and cautious investing. Boomers value financial stability and legacy, focusing on preserving the wealth they've built for retirement. Even with experience, Boomers report difficulty with complex financial concepts like risk, and fewer than half correctly answer retirement-specific questions. This is a potential challenge given their proximity to retirement age. J.P. Morgan’s research adds that Boomers prefer one-on-one and face-to-face conversations about money.

Generation X: Masters of Balance and Complexity

Gen X, frequently handling the demands of both raising children and supporting aging parents, occupies a middle ground. Their financial knowledge is more balanced; they adapt to both traditional and digital tools. Many Gen Xers are adept at juggling mortgages, college savings, and retirement planning, but the “sandwich” pressure can lead to delayed retirement preparedness and high stress. According to industry studies, their financial literacy is generally higher than Millennials’ and Gen Z’s but lower than Boomers’, reflecting their transitional position. Gen Xers are flexible communicators, blending conventional approaches with digital strategies.

Millennials: Eager, Digital, and Debt-Burdened

Millennials demonstrate strong digital skills, using technology for budgeting and investing. Yet, TIAA’s data shows that they answer fewer financial literacy questions correctly than Boomers or Gen Xers, and many struggle with savings, investing, and retirement planning. Student loan debt and the aftermath of the Great Recession have delayed major life milestones for many Millennials. Despite lower financial knowledge scores, Millennials are open to learning, value transparency, and seek financial guidance relevant to their goals and values. Their preference is for digital communication, with an emphasis on openness and immediacy.

Generation Z: Ambitious but Lacking Confidence

Gen Z is the most technologically advanced generation, but also has the lowest financial literacy scores, just 38% correct on the P-Fin Index. They typically focus on day-to-day financial concerns, like budgeting and the cost of housing, and often express anxiety about their financial futures. Studies including those by Enrich and People’s Pension highlight that Gen Zers are eager to learn but feel less prepared than previous generations for financial decision-making. Much of their learning happens online, and they prefer information in accessible, practical formats. Many have had little formal education in personal finance, underlining the need for foundational education and support.

The Impact of Financial Literacy Gaps in the Workplace

Understanding and addressing these gaps is about organizational effectiveness. Research confirms that gaps in financial knowledge among employees influence key business metrics:

Financial Stress Lowers Productivity and Increases Anxiety

Employees with low financial literacy are more likely to experience high stress and anxiety. The 2025 Nudge Financial Wellness Report found that financial stress is 9 percentage points higher and anxiety is 9 points higher in employees with poor financial literacy. This leads to decreased productivity, increased absenteeism, and lower engagement at work. Stress caused by confusion over investing, savings, or even just understanding benefits can quickly spill over into job performance and team morale.

Higher Turnover and Talent Drain

Younger employees especially view financial wellness support as a sign of a forward-thinking workplace. When their needs aren’t met (or benefits aren’t explained in actionable ways) they are more likely to leave for employers who provide comprehensive financial education and guidance. This talent drain can impact innovation and retention, especially among Millennials and Gen Z, who seek employers invested in holistic well-being.

Underutilized Employee Benefits

According to the TIAA Institute, many employees do not grasp the value or mechanics of retirement plans, health savings accounts, or other benefits. For example, only 37% of adults answered retirement-specific questions correctly. This lack of understanding means employees (of all ages) may not enroll early in 401(k)s or optimize HSAs, losing out on long-term compound growth and employer matching. When benefits go unused, both employees and employers forfeit significant opportunities for financial security and cost savings.

Actionable Solutions for Employers

Bridging the generational financial literacy gap starts with understanding employees’ unique needs and delivering targeted, actionable support:

1. Provide Tailored Financial Education Platforms

Modern financial wellness solutions, like personalized online learning platforms, assess employees’ life stage, goals, and current knowledge. Delivering targeted modules helps each generation develop relevant skills, whether that’s budgeting basics for Gen Z or advanced investing for Boomers. By offering resources that address employees’ specific concerns, organizations create learning experiences that stick.

2. Facilitate In-Person and Virtual Workshops with Real-World Topics

Workshops remain powerful tools for building skills across demographics. Host a diverse range of sessions, such as:

  • Student debt repayment and credit-building (for early-career employees)
  • Family financial planning and mortgage management (for Gen X and Millennials)
  • Retirement income and healthcare cost planning (for Boomers and soon-to-retire Gen Xers)

Involve financial experts to ensure clear, jargon-free guidance. Encourage participation through anonymous Q&A and share success stories internally.

3. Encourage Intergenerational Mentoring

J.P. Morgan’s research notes significant value in mentorship. Pair younger employees with experienced colleagues for one-on-one or small group sessions. For instance, Millennials and Gen Z can learn about investing and retirement strategies, while Boomers benefit from tech-savvy tips. Creating an open culture bridges generational gaps and builds mutual respect.

4. Strengthen Communication Around Benefits with Practical Examples

Move beyond a benefits booklet at onboarding. Regularly highlight benefits through workshops, emails, and intranet resources, using infographics and common scenarios. Demonstrate how participating in a 401(k), maximizing an HSA, or using an employee stock plan directly supports each generation’s financial goals. Make time for ongoing Q&A, and consider using digital tools to personalize benefits education.