A failing grade

By most accounts, we are failing this generation. In the years leading up to the pandemic, feelings of persistent sadness and hopelessness – as well as suicidal thoughts and behaviors increased dramatically among young people. The Centers of Disease Control and Prevention’s Youth Risk Behavior Surveillance System puts in this number at about 40% among youngsters in the United States. The situation isn’t much better elsewhere around the world.

A Gallup-WWF study said that compared with older generations, Gen Z-ers are much more likely to report experiencing negative emotions such a stress, anxiety and loneliness. Social media pressure, military conflicts, natural disasters, climate change, crushing debt, economic insecurity, lack of community and connection – all play central roles in contributing to this worrying statistic and the ensuing mental health crisis.

As adults responsible for the next generation, we’ve been asleep at the wheel. The comforting delusion that we can continue with ‘business as usual’ is wreaking havoc on the lives and futures of these Gen Z-ers.

They live in bigger houses but empty homes. They have lightning fast 5G internet connectivity but have to contend with a deep void of human connection. We’ve got them overly concerned about GPA’s and college entrance tests while we breezily brush aside their concern for the state of the planet they live on. We tell them they are the leaders of tomorrow while providing poor examples of true leadership today.

Sins of omission

Our sins of omission might overshadow those of commission – our deafening silence in the face of injustice, our numbing apathy at the violence against the powerless, our blatant disregard for the pleas of the vulnerable.

We’re promoting toxic traits – favoring independence over interdependence, which is shown to be a mark of maturity; individualism, instead of collectivism where everyone benefits; and isolation rather than embracing community, which provides the crucial social and psychological support they need to thrive.

Care, compassion and courage

While none of this wasn’t intentional, the ongoing impact is undeniable. If we want Gen Z-ers to have a fighting chance at happiness and fulfillment, we need to re-assess our values and priorities. We need to change the way we view the world, not just how we can get the most out of it, but how we can all actively contribute to a better world. Not just mindless consumption at the expense of the poor and the planet, but mindful utilization and fair distribution of resources. Not just what’s best for us individually, but what’s best for society as a whole.

We need to re-examine and repair our social fabric. We need to show care, compassion and courage for those less fortunate. We need to realize how interconnected our lives and paths are.

A paradigm shift

Until we can make this shift in our thinking, our current efforts at tackling the youth mental-health crisis, which primarily center around medication and individual therapy, will be incomplete, ineffective and woefully short-sighted. It’s high time we take a more holistic view and demonstrate the stewardship required from us.

Undoubtedly, this transition won’t be easy, given that we’ve been entrenched in this way of thinking for so long. It’s so much easier to prescribe quick fixes rather than to re-evaluate the very foundations we’ve built our lives on. But this is now a moral imperative – the future of Gen Z hangs in the balance.

Nowhere is that more apparent than in the fight for climate action. With COP28 now underway in the UAE, the widening divide between the Global North and Global South has finally taken center stage, with pledges, finance and action plans to address this concern with the seriousness and consideration it deserves.

On the first day of this year’s UN climate conference, delegates agreed to launch and capitalize the Critical Loss and Damage Fund which would provide financial assistance for vulnerable countries to deal with the worst impacts of climate change. This is a significant step in the right direction for two reasons. One, that climate change is likely to hurt poor countries more than rich ones, and two, that the countries hardest hit by the climate crisis have done the least to cause it.

It’s the economy, stupid

Climate change not only impacts the physical face of these countries, it also has a huge impact on their economies, thus further increasing economic inequality around the world. While climate change is just one of the factors, the price of this rising economic inequality is steep.

Beyond the stark disparity in wealth distribution, the escalating price of this inequality is revealed many other ways. An eroding social cohesion, diminishing opportunities for those on the lower rungs of the economic ladder, a widening heath gap, an increasing education gap, and barriers to social mobility, are some of them. The impact of these repercussions reverberates through various facets of society, impacting individuals, communities, and the overall well-being of nations.

A long, winding road ahead

It’s crucial then, to consider ways in which we can tackle this growing economic inequality and thus bring a measure of social justice. Whilst the problem is complex, multi-factorial and seemingly intractable, there are strategies we can deploy that will help. We do however need to rid ourselves of any delusions that this is going to be easy, or quick.

Economic inequality is a systemic problem and changing deep-rooted systems are never easy, especially when those very systems benefit a powerful section of society.

Low hanging fruit

Financial empowerment holds significant promise in this context, and given its intricate entwinement with social justice, it serves as a catalyst for positive change. This emerges as a potent force capable of reshaping the landscape of social justice within our communities. This not only addresses economic balances but delves into the border narratives of societal well-being and inclusivity.

Financial empowerment offers individuals the tools and knowledge to navigate and harness financial resources. This is pivotal step in dismantling systemic barriers that perpetuate inequalities, paving the way for a more just and inclusive society.

It also intersects with other aspects in inequality, such as gender and race. Women and minorities have historically faced significant challenges in accessing financial resources and opportunities. By giving them skills, understanding and confidence to manage money better, we can help create a bridge these divides.

One of the big advantages of financial empowerment is that it has wider social implications. When individuals have a strong understanding of financial concepts, they are better equipped to navigate complex financial systems and make informed choices. This, in turn, can contribute to economic growth and stability at both the individual and community levels. It can also help reduce income inequality by providing individuals with the tools they need to build wealth and create a more secure future.

An intense, concerted effort to financially empower individuals needs to get underway, one that deploys and leverages the resources of various stakeholders. Such an initiative would make great strides in restraining the growth of inequality, for the reasons mentioned above.

An existential crisis

In times of economic and financial stress, environmental concerns often go out the window. Our instinct for immediate self-preservation edges out our concern for the common good, even though this strategy is counter-productive in the long run. Human beings and most other species cannot survive and thrive in a massively depleted and damaged environment. However, our psychological make-up prevents us from realizing this. We tend to suffer from ‘tunnel vision’, focusing intensely on the most immediate crisis while blocking out considerations of the future.

Helping individuals develop financially security will help give them the mental bandwidth they require to focus on the existential crisis just around the corner – climate change and its potentially devastating impact on our planet. This will empower them to make informed choices regarding green alternatives – be in in energy, investments or food choices; and strengthen their resolve and ability to turn away from cheaper but dirtier and more polluting alternatives. Being financially savvy will also help individuals become more discerning and thus help to stem the tide of blind consumerism threatening to engulf us all.

In summary, financial empowering individuals has immense benefits, not just for them individually but for society, and the entire planet. It’s a concrete step toward a more equitable, resilient and sustainable future and a huge stride toward the ideal of social justice that we all crave and require.

Promises in Peril

The current status of these SDGs however, is less than promising.  According to the 2023 SDG Report, only 15% of the Sustainable Development Goals are on track to be achieved by 2030. Nearly half, 48%, show moderate or severe deviation from the desired trajectory, while over one-third, 37%, have experienced no progress or have regressed below the 2015 baseline.

Factors such as a weak global economy, the impacts of the climate crisis, and the lingering effects of the COVID-19 pandemic have impeded progress toward these goals. To reverse this trend and fulfill these promises, our actions must align with the scope of these challenges.

Unlocking Potential

In a world where financial decisions reverberate through every aspect of our lives, the transformative power of financial literacy cannot be overstated. A scalable initiative that empowers people with the financial literacy skills they need to make better financial decisions, has the potential to address not one or two but five SDGs.

SDGs 3, 4, 5, 10 and 17 form the nexus of positive change and it’s through the lens of financial literacy that we can truly unlock their potential.

Goal 3: Good Health and Well-being

The impact of financial stress on health – both physical and mental – is well known and documented. Financial stress has been linked to a range of mental health issues, including anxiety and depression. Numerous studies have established a direct correlation between financial stress and adverse physical health outcomes, ranging from cardiovascular issues to gastrointestinal problems. The physiological response to financial stress, characterized by elevated levels of stress hormones like cortisol, can contribute to inflammation, weakened immune function, and disruptions in sleep patterns.

Financial literacy enables individuals to manage their money better and make better financial decisions. It helps them avoid major financial mistakes and feel more secure and confident about their future. This in turn leads to decreased financial stress and better physical and mental health outcomes thus directly addressing SDG 3.

Goal 4: Quality Education

 Quality education continues to be an elusive goal for many, with a lack of effective learning outcomes, scholarships and qualified teachers rating high on the problem scale.

A well-designed financial literacy initiative has the ability to address this SDG head on particularly if it focuses on a number of key aspects – that is delivered by qualified teachers who are specially trained to deliver high impact programs, that it is offered free of charge to students by securing sponsorships with banks and other corporate institutions, and that there are effective learning outcomes as evidenced by independent reviews and case studies.

Goal 5: Gender Equality

Despite significant strides, gender disparities persist globally, particularly in economic empowerment. A financial literacy initiative plays an important role in dismantling barriers to gender equality.

By providing women with financial knowledge and skills, we empower them to make independent financial decisions, navigate economic systems, and participate fully in economic activities. Financially literate women are better positioned to break free from economic dependence, challenge gender stereotypes, and contribute actively to economic development. Moreover, financial literacy programs can address the unique financial challenges that women face, such as the gender pay gap and access to financial services.

Goal 10: Reduced Inequalities

The rise in economic inequalities poses a significant challenge to global development. The perpetuation of economic inequality often results in a cycle where certain groups face systemic barriers to wealth accumulation, hindering their ability to break free from the constraints of poverty.

A financial literacy emerges as a powerful tool for reducing inequalities by providing individuals from all backgrounds with the knowledge and skills to navigate financial systems. Financially literate individuals can make informed decisions about budgeting, investing, and managing debt, contributing to improved financial well-being. Financial literacy is particularly impactful in marginalized communities, where it can serve as a means of empowerment, breaking cycles of poverty and fostering economic resilience. By promoting financial education as a tool for social and economic inclusion, SDG 10 can be advanced, leading to a more equitable global society.

Goal 17: Partnership for the goals

Increasing cooperation is seen as vital to achieving each of the 16 SDGs.

A financial literacy initiative that’s pinned on the collaborative efforts of various stakeholders like educational institutions, financial institutions, government bodies and other corporate entities perfectly aligns with the spirit of SDG 17.  It leverages the expertise and resources of various stakeholders and increases the sustainability of the initiative.

Fin-Ed UNITED 2023

This nationwide financial literacy initiative led by KFI GLOBAL aims to foster financial literacy through a scalable, standardized, and sustainable approach. By empowering individuals with financial knowledge and skills, it not only enhances individual well-being but also contributes significantly to the broader agenda of sustainable development.

In steering us toward a future where economic empowerment is a catalyst for social and environmental goals, Fin-Ed UNITED 2023 stands as a groundbreaking initiative on the path to positive change.