# How can fintechs better engage Zillennials with their financial health? The answer lies in speaking to them in their own language Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-15 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: How to Improve Financial Literacy for Zillennials Meta Description: Discover how Cleo is revolutionising financial education for young adults by making data engaging, accessible and personalised. Start your journey to financial URL: https://financedigest.com/how-can-fintechs-better-engage-zillennials-with-their-financial-health-the-answer-lies-in-speaking-to-them-in-their-own-languagehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1422253144-1736814717597-compressed.jpg) _![ level of financial literacy ](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/717-1736814717585-compressed.jpg)_ _By **Anita Woods,** VP of Product at Cleo_ For most adults, dealing with our personal finances rarely tops the list of ways we’d choose to spend our spare time. And for those in the ‘Zillennial’ age bracket (ages 24-29 years old),who are tasked with learning to manage their money in the midst of an economic downturn,it can seem like an impossible challenge. It is widely reported that young [adults are already experiencing worrying levels of money-related stress and anxiety – and the toll this takes on all aspects of our life](https://www.financedigest.com/1-in-3-adults-dont-believe-school-education-prepared-them-for-adult-life.html "1 in 3 adults don’t believe school education prepared them for adult life"), from our performance at work to our day-to-day wellbeing, can be huge. While the current economic climate is likely to remain unstable for some time to come, at Cleo, we firmly believe that arming young people with the right information, resources and skills to better [manage their personal finances](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances"), can at least ease some of the burden. The [key is making financial](https://www.financedigest.com/4-key-financial-trends-as-we-approach-2021.html "4 Key Financial Trends as we Approach 2021") education easily accessible for more young people – and crucially – in a format they can relate to. **Data doesn’t have to be dull – how can we** [improve financial literacy?](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") It’s an unfortunate fact that young adults don’t have the samecccompared to older generations. Effective money [management isn’t something you can learn overnight – it takes practice](https://www.financedigest.com/exact-launches-practice-management-solution-to-help-transform-accountants-into-trusted-business-advisors.html "Exact launches Practice Management solution to help transform accountants into trusted business advisors") and experience. But today, Zillennials are finding themselves plunged into a particularly challenging [economic landscape and are being forced to make big](https://www.financedigest.com/big-data-suggests-leicesters-football-success-could-usher-in-economic-boom.html "Big data suggests Leicester’s football success could usher in economic boom") financial decisions, with minimal understanding and resources. Data, however, has the potential to drastically improve an individual’s financial understanding and awareness – from effectively handling their monthly outgoings to their [ability to save](https://www.financedigest.com/student-loans-hurting-workers-ability-to-save-for-retirement.html "STUDENT LOANS HURTING WORKERS’ ABILITY TO SAVE FOR RETIREMENT") towards both short and long term goals. Indeed, we’ve found that 77% of Cleo users who log into the app for 15+ [days in a month say their financial lives](https://www.financedigest.com/pensions-awareness-day-could-you-get-by-on-less-than-living-wage.html "Pensions Awareness Day: Could you get by on less than living wage? ") have benefitted as a result. However, this only works if data is presented in an [engaging and interesting way](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?"). The vast majority of traditional [personal finance](https://www.financedigest.com/ai-and-social-media-are-revolutionizing-personal-finance-in-2023.html "AI and Social Media Are Revolutionizing Personal Finance in 2023") and banking apps display user data in an incredibly passive, retrospective, and frankly dull, way. This is a major turn-off for Zillennials, and does nothing to support them in making better, more informed, [financial decisions](https://www.financedigest.com/smart365-to-unite-advisers-and-technology-for-better-financial-decisions.html "Smart365 to unite advisers and technology for better financial decisions"). **[Weathering financial storms](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm") through personalised data insights** The [cost of living crisis](https://www.financedigest.com/5-ways-to-support-your-employees-during-the-cost-of-living-crisis.html "5 ways to support your employees during the cost of living crisis ") is showing no signs of abating and we are all set to continue feeling the pinch well into 2023 as inflation, energy prices and basic household living expenses skyrocket. And whilst we all feel it, knowing exactly where that pinch is hitting us hardest isn’t always obvious. For instance, do we really notice the [cost of our workday lunch rising](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?") or that we’re getting less for more at the supermarket? If we sat and scanned our [bank statements](https://www.financedigest.com/bank-of-england-statement-on-purchase-of-long-dated-bonds.html "Bank of England statement on purchase of long-dated bonds") and compared them to previous months, we could probably work it out – but who has the time for that? What if we could get that kind of [data at our fingertips – and better yet – presented to us in a personalised way](https://www.financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitive.html "Three Ways the Data Cloud Can Keep Financial Services Competitive") that actually resonates with us? Using digital technology, we can now analyse an individual’s spending and savings habits, present them with personalised money insights and help them [move towards](https://www.financedigest.com/investment-advice-moving-towards-a-new-model.html "Investment advice – moving towards a new model") their financial goals.. We’ve found that nearly two thirds of our users have said they are much better at managing their monthly bills with Cleo’s support and 84% say they feel better about their [finances after using the app](https://www.financedigest.com/make-way-for-the-rise-of-the-finance-super-apps-consolidation-of-financial-digitisation-tools-platforms.html "Make way for the rise of the Finance Super Apps – Consolidation of Financial Digitisation Tools & Platforms") for at least one month. **Proactive insights link directly to positive behaviour change** According to the Global Centre for Financial Health, there are three main aspects to financial wellbeing: [financial security, financial freedom, and financial control](https://www.uncdf.org/gfh/global-financial-health). When boiled down, this [means](https://www.financedigest.com/does-the-monzo-effect-mean-banks-will-need-to-rethink-brand-building.html "Does the ‘Monzo effect’ mean banks will need to rethink brand building?") that people need to be able to cover their basic needs, with money left over to fund what they truly value and enjoy. It’s also about being able to manage one’s finances in the here and now, whilst also keeping an eye on the [future – including planning for any unexpected financial](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") difficulties that might occur. With this in mind, helping young people better [understand the consequences of their financial](https://www.financedigest.com/10-ways-to-make-your-financial-model-easier-to-understand.html "10 Ways to Make Your Financial Model Easier to Understand") actions – or indeed inactions – is paramount. And one key [way](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech") to do this is by sharing key financial insights. A prime example of this is overdraft fees – the average of which is [$35 in the US](https://www.fdic.gov/resources/consumers/consumer-news/2021-12.html). We found that we could reduce the number of people incurring overdraft fees by 10% over the next week, simply by delivering a proactive notification to them when they had a low balance in their account. This is also applicable to [credit ratings – a crucial component for anyone applying for a loan](https://www.financedigest.com/credit-union-loans-in-high-demand.html "Credit Union Loans in High Demand") or mortgage. High levels of debt or missed payments are the biggest offenders when it comes to hindering [credit scores](https://www.financedigest.com/12-things-that-dont-hurt-your-credit-score.html "12 Things That Don’t Hurt Your Credit Score"), and these mistakes have consequences that remain on your financial record for years. Sending proactive notifications that remind [people to pay their bills on time or pay off some of their debt](https://www.financedigest.com/5-common-ways-people-end-up-in-debt-without-realising.html "5 Common Ways People End Up In Debt Without Realising"), can all help work towards a better credit score. In summary, the economic landscape is getting tougher by the day and for young adults who have yet to live through a recession, the [future might](https://www.financedigest.com/explainer-how-the-world-health-organization-might-fight-future-pandemics.html "Explainer-How the World Health Organization might fight future pandemics") feel overwhelmingly bleak right now. But if we can arm people with accurate financial data that is easy to digest and presented in a way that genuinely engages them, the more likely they are to feel [prepared and confident when it comes to weathering challenging](https://www.financedigest.com/from-fragmented-systems-to-unified-cpm-unicredit-prepares-for-todays-finance-challenges.html "FROM FRAGMENTED SYSTEMS TO UNIFIED CPM – UNICREDIT PREPARES FOR TODAY’S FINANCE CHALLENGES") times and setting themselves up for a more stable financial future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---