Money habits aren’t formed in a vacuum. They’re shaped by the crises we live through, the culture we’re raised in, andthe tools we trust to manage our future. Today’s financial landscape is being redefined by generational shifts, cultural influences, and emerging technologies, like artificial intelligence, each impacting how people save, spend, and invest.

Gen Z is proving to be more disciplined and frugal than Millennials, driven by the economic crises they’ve witnessed in their households and their determination to avoid the same pitfalls. They’re saving earlier, budgeting more carefully, and leaning on side hustles to build financial security. Millennials, however, often lean toward spending on experiences, despite having endured many of the same economic setbacks. These differences highlight howcontext and culture influence money decisions in ways that numbers alone can’t explain.

Race and ethnicity also significantly influence financial priorities and levels of trust in financial institutions.Disparities in homeownership, retirement readiness, and perceptions of financial health remain stark, underscoring the need for inclusive financial education and culturally relevant outreach. Providing access alone falls short of creating solutions that meet people where they are.

And while technology is reshaping the landscape, trust remains a hurdle. Many consumers are open to using AI forsimple financial tasks, but skepticism grows when higher stakes are involved. The key is balance. Pair AI with human oversight, clear guardrails, and transparent communication to build confidence across generations.

On this episode of The New Mainstream podcast, Aijaz Hussain Shaik, Senior Director of Thought Leadership & Research at Empower, unpacks how generational shifts, cultural influences, and technology are redefining financial behavior and what it takes to create more inclusive financialsystems.