PALO ALTO, Calif.--(BUSINESS WIRE)--Step, the all-in-one financial solution for the next generation, today announced Step Savings Goals, a free financial product built specifically for the way teens want to save. In addition, Step customers can now instantly deposit their cash at one of 65,000 retail locations like 7-Eleven, CVS or Walgreens, to put towards their savings goals. These new offerings––the 2 most requested Step features––comes just as Gen Z begins to focus on their financial goals for 2022.
A recent Step survey of nearly 3,000 teens revealed that 87% consider saving money a priority. Additionally, 75% have already set financial goals for the new year with over half committing to make saving money a new habit. However, without sound financial tools or education, achieving these goals has historically been an uphill battle for Gen Z.
In fact, the survey also revealed that 57% of teens have no savings. While this is something they want to get better at, many admit that not earning a lot and generally spending all of what they do make, has made it really tough to save. Nearly half of teens also agreed that social media––and the FOMO it creates––regularly causes their spending to get out of hand.
Despite these obstacles, Gen Z says the pandemic––and the financial challenges it’s created for their family––has motivated them to put a major focus on getting their savings in order this year. And, according to Piper Sandler, 85% of teens are still using cash to save. With Step’s instant cash deposits and savings goals, teens no longer have to hide money under their mattresses (yep, they still do that) to save for their financial futures. Today, they can save how they want with the ability to create several goals that they can easily track their progress towards.
“I’ve always had multiple savings goals going at once because I have big dreams and think it’s a really helpful way to understand where you’re at with the financial life you’re hoping to create for yourself,” said Ailey K., a long-time Step customer and teen ambassador. “In some cases, it’s given me a much needed wakeup call to cut back on my spending, motivating me to save more.”
With Step Savings Goals, teens can easily toggle between their Spending and Saving tabs, choosing from popular goals or creating their own (complete 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 achieved, 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 kids but it’s been a very difficult concept for them to grasp––let alone practice,” said Tanya T., parent of 3 teens. “The new Step Savings Goals feature has made a world of difference since they can see how close they are to reaching their goals which they get really excited about––as do I!”
The company saw overwhelming engagement from teens during its beta phase late last year. More than 100,000 Step customers were given early access to the product with the majority creating savings goals right away. Additionally, 22% of teens who participated in the beta program are making regular contributions, something that’s traditionally been a struggle for Gen Z. Even more impressive, in just one month, nearly 500 teens have already achieved their first savings goal.
“Step Savings Goals has been a long time coming and we’re thrilled to be furthering our mission of helping to improve the financial futures of the next generation by giving them a better way to save money,” said CJ MacDonald, Founder and CEO at Step. “Saving money doesn’t have to be a daunting task and we believe that helping teens celebrate every small win––whether that’s $5 or $500––will help them make saving money a lifelong habit.”
In celebration of the Step Savings Goals launch, 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 grow their money for all their wants and needs. In the coming months, Step will also be providing additional ways to help teens make saving automatic with roundups and more.
About 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-day banking needs and to promote financial literacy for the future. The founding team has 50+ years in combined financial technology experience from companies like Affirm, Block, Google, Gyft, Stripe and Wealthfront. The Series C company has raised more than $175 million in venture funding, backed by Coatue, Collaborative Fund, Crosslink Capital, General Catalyst and several other prominent investors. Step has nearly 3 million customers and its financial products are powered by its bank partner, Evolve Bank & Trust, Member FDIC 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, among a demographically representative sample of 2,877 Step customers, aged 13 to 17.
