Now giving the next generation a better way to save money and instantly deposit money.
PALO ALTO, Calif .– (BUSINESS WIRE) –Stage, the all-in-one financial solution for the next generation, today announced Step Savings Goals, a free financial product designed specifically for how teens want to save. In addition, Step customers can now instantly deposit their money at one of 65,000 points of sale, such as 7-Eleven, CVS or Walgreens, to achieve their savings goals. These new offerings – the 2 most requested Step features – come just as Gen Z begins to focus on their financial goals for 2022.
A recent Step survey of nearly 3,000 teens found that 87% of them see saving money as a priority. In addition, 75% of them have already set financial goals for the New Year, and more than half are committed to making saving money a new habit. However, without solid financial tools and education, achieving these goals has always been an uphill battle for Gen Z.
In fact, the survey also found that 57% of teens have no savings. While this is an area they want to improve on, many admit that not making a lot of money and generally spending everything they earn has made saving very difficult. Almost half of teens also agreed that social media – and the FOMO it creates – regularly spins out of control.
Despite these obstacles, Gen Z says the pandemic – and the financial challenges it has created for their families – has motivated them to focus on getting their savings back in order this year. And, according to Piper sandler, 85% of teens still use cash to save. With Step’s Instant Cash Deposits and Savings Goals, teens no longer have to hide money under their mattresses (yes, they still do) to save for their financial future. Today they can save however they want with the ability to create multiple goals towards which they can easily track their progress.
“I’ve always had multiple savings goals at once because I have big dreams and I think it’s a very useful way to understand where you are with the financial life you hope to create for yourself”, said Ailey K., longtime Step client and teenage ambassador. “In some cases, it gave me a much needed wake-up call to cut spending, motivating me to save more.”
With Step Savings Goals, teens can easily switch between their Spend and Savings tabs, choosing from popular goals or creating their own (with pictures). A family affair, parents also have the ability to contribute to their teens’ goals, reinforcing positive behaviors and creating an opening to have more conversations about money management. Once a savings goal is met, Step even sends a congratulatory note with fun gifs and confetti to help celebrate the milestone.
“I have always expressed the importance of saving money with my children, but it is a very difficult concept for them to grasp, let alone the practice,” said Tanya T., parent of 3 teenagers. . “The new Milestone Savings Goals feature has made all the difference because they can see how close they are to achieving their goals, which they are really passionate about, and so am I! ”
The company saw overwhelming engagement from teens during its beta phase late last year. Over 100,000 Step customers have had early access to the product, the majority immediately setting savings goals. What’s more, 22% of teens who participated in the beta make regular contributions, which is traditionally a struggle for Gen Z. Even more impressive, in just one month, nearly 500 teens have already reached their first goal. saving.
“Step Savings Goals is long overdue and we are excited to continue our mission to help improve the financial future of the next generation by providing them with a better way to save money,” CJ said. MacDonald, Founder and CEO of Step. “Saving money doesn’t have to be a daunting task, and we believe that helping teens celebrate every little win – whether it’s $ 5 or $ 500 – will help them save money. money is a lifelong habit. ”
To celebrate the launch of Step Savings Goals, the company will be running a limited-time offer in January where 5% of all purchases teens make with their Step Card (up to $ 100) will be deposited into their Saving tab to help them. to develop their money for all their wants and needs. Over the next few months, Step will also come up with other ways to help teens automate savings with roundups and more.
About the step
Step was founded by financial industry veterans CJ MacDonald and Alexey Kalinichenko to provide teens and their families with financial tools for today’s modern banking needs and to promote financial literacy for the future. The founding team has over 50 years of combined financial technology experience with companies like Affirm, Block, Google, Gyft, Stripe, and Wealthfront. The Series C company has raised more than $ 175 million in venture financing, backed by Coatue, Collaborative Fund, Crosslink Capital, General Catalyst and several other leading investors. Step has nearly 3 million customers and its financial products are powered by its banking partner, FDIC member Evolve Bank & Trust, and insured up to $ 250,000. To learn more, please visit: www.step.com.
About the survey
The online survey was conducted via Typeform from December 13, 2021 to December 17, 2021, with a demographically representative sample of 2,877 Step customers, aged 13 to 17.
Ellen D. Kiehl