Young homebuyers face gaps in their financial knowledge

According to the findings, 93% of millennials and Gen Z reported that they were not taught financial literacy in school, while only 7% could correctly identify the minimum down payment needed to purchase a home.

Twenty percent say they trust lenders and real estate professionals to guide them through important financial decisions.

Researchers say that lack of trust – not lack of interest – influences behavior.

More than half of respondents say they are delaying major financial milestones due to confusion or mistrust.

“When borrowers are overwhelmed, confused or uncertain, they postpone decisions that could build wealth earlier in life,” said Dave Savage, chairman of FirstHome IQ’s board of directors. “This is where FirstHome IQ comes in. We have the opportunity to meet people much earlier in their journey, democratize financial clarity and bridge the growing wealth gap with education that enables action.”

Detailed overviews of the challenges younger buyers face, as well as a coordinated plan for the housing industry to support them with research-backed education, are included in the full version. report.

“As FirstHome IQ Ambassadors lead the way in education, customer relationships are strengthened and sustainable business growth is supported,” said Kristin Messerli, Executive Director of FirstHome IQ. “Doing good and performing well can be aligned, and the mortgage industry is now demonstrating that leadership.”