Back-to-school season brings a new round of spending decisions. Parents need to stock up on supplies, books, clothes and electronics, while searching for deals wherever they can. That makes it a natural time to talk with their children about money and how families decide what fits their budget.
Banks can build on those financial literacy conversations and, in the process, earn more trust with the next generation of customers.
Financial education does not stop in the classroom
Financial literacy is getting more attention in schools. According to the Council for Economic Education, 39 states now require high school students to take a personal finance course to graduate. That means millions more students are learning about money compared to even a few years ago.
However, education requirements are still not universal nationwide. And even for students who take a course, learning the concepts is only the beginning. They still need chances to apply those lessons properly when making decisions about their own money.
Banks are well positioned to help with that next step. They work with customers as they begin handling different parts of their finances, whether someone is opening their very first savings account or starting to navigate more complex decisions around credit or investing. Those real-life moments can make financial lessons feel more immediate and practical.
Putting lessons into practice
Banks can support families during back-to-school season by giving students more hands-on ways to practice financial skills.
For example, a bank can offer an app to help parents and younger children create a simple budget for their school shopping. Part of the exercise might show how setting aside some of that money for savings can add up over time, especially as interest compounds.
The lessons can become more advanced as children get older. A teen earning money from a first job, for example, could learn how to budget monthly income and begin setting aside an emergency fund. Older students may be ready to explore topics like credit cards or investing.
These experiences can also help parents with future family money discussions. It helps students understand that a budget requires tradeoffs about what they can and cannot afford for back-to-school shopping.
Banks do not have to create every resource themselves. The FDIC’s Money Smart for Young People Resource Center offers free, age-appropriate curricula from pre-K through grade 12, along with resources for parents and digital activities. Banks can use those materials to run financial education programs in their branches and communities.
Making financial education more engaging
Financial education is important, but the subject may not always grab the attention of younger customers just getting started. Digital tools can make those lessons more interactive, especially for students who have grown up with smartphones. Mobile devices can help upskill younger generations in terms of budgeting and overall financial literacy.
Build trust before the next financial milestone
Financial education gives banks a chance to build deeper relationships long before students need more products and services.
Recent Deloitte research shows why that matters so much for younger customers. It found that Gen Z customers had the highest risk of switching their primary bank out of any generation, in part because they tend to have fewer products and a shorter history with the institution. At the same time, digital banking has made it easier to move accounts elsewhere.
Keep the conversation going.
Back-to-school season gives banks a timely reason to start financial literacy conversations with families. The bigger opportunity is to keep those conversations going throughout the year, as young customers encounter new questions about managing their money. Technology can help banks bring those efforts to life.
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