As Gen Z members move past high school and enter the workforce, they need to establish their financial independence. Sadly, they often cross that threshold with little knowledge or confidence to manage their money:
- A 2024 Moneyzine study found that only 38% of Gen Z members can correctly answer basic financial questions—the lowest financial literacy rate among all U.S. generations. They are also the least confident in their knowledge among the age groups.
- When the same survey asked teens about their sources of financial education, 75% said their families, 48% said social media, and only 52% cited their school.
You are best positioned to educate your adult child about managing money. You can't rely on schools to inform your child. Only 46% of Americans say they gained personal finance skills in high school, according to a 2024 FICO survey.
What should you tell your Gen Zer? First, explain that being a credit union member connects you to something bigger than yourself:
- You're part of a community. You're valued as a person. You're more than an account number or a bank balance. You're participating in something meaningful. Tropical Financial states on its website that its mission is to “provide members with valuable products, services, and education to help achieve their goals.”
- So is your credit union. Tropical Financial was founded in 1935 and serves residents of Miami-Dade, Broward and Palm Beach counties. It supports local businesses and nonprofits, and its staff volunteers at events that benefit the community.
- You have a voice. You're not just a customer; you're a member, which means you're an owner of the credit union. You possess an equal voting right to help determine the institution’s policies and elect board members. You can demand transparency and accountability from its leaders. That’s unlikely at a bank, which primarily answers to shareholders.
- Financial benefits flow to you. Credit unions return earnings to members through better rates, lower fees, and services that prioritize individual needs. Publicly traded banks are accountable to Wall Street, not Main Street, and privately owned institutions to their stockholders.
- You’ll finally receive the financial education you’ve been missing. Learn how to manage your money, apply for a mortgage, get out of debt, and improve your credit rating at Tropical Financial’s online Knowledge Center for Financial Education. Want help? Ask a question or schedule a coaching session.
Next, tell your kids that people—not profits—matter more at a credit union, which means:
- Fewer and lower fees for services like account maintenance, overdrafts, and ATM usage compared to traditional banks. For example, the Daily Rewards Checking account has no minimum balance, no monthly service fees or Tropical Financial ATM fees, and pays 2 cents back on every debit card purchase.
- Higher earnings on your money. Credit unions are nonprofit institutions. Their tax-exempt, member-owned structure makes it possible to pay higher interest rates on savings accounts and certificates of deposit.
- Lower borrowing costs. That same structure enables all members to enjoy lower rates on car and personal loans—vital when you're a student or just starting your career.
- Personalized service. Because each member is also an owner, Tropical Financial employees take more time to understand your financial needs and offer solutions tailored to you.
The benefits—and the sense that their choice impacts their lives and the lives of others—will help your Gen Zer understand why credit union membership is the better choice.
