FirstHome IQ says that millennials and Generation Z face significant gaps in financial knowledge and trust as they approach homebuying age, according to the group’s newly released 2025 Impact Report.
The report outlines widespread uncertainty among younger homebuyers — noting that most never received formal financial literacy education.
According to the findings, 93% of millennials and Gen Z reported they did not learn financial literacy in school, while only 7% could correctly identify the minimum down payment needed to purchase a home.
Twenty percent said they trust lenders and real estate professionals to guide them through major financial decisions.
Researchers say the lack of confidence — rather than lack of interest — is influencing behavior.
More than half of respondents indicated they are delaying major financial milestones because of confusion or distrust.
“When borrowers are overwhelmed, confused, or uncertain, they delay decisions that could build wealth earlier in life,” said Dave Savage, chairman of the board at FirstHome IQ. “This is where FirstHome IQ comes in. We have the chance to meet people much earlier in their journey, democratize financial clarity, and bridge the growing wealth gap with education that empowers action.”
Detailed views of the challenges younger buyers face, as well as a coordinated plan for the housing industry to support them with research-backed education, is included in the full report.
“As FirstHome IQ Ambassadors lead with education, it strengthens client relationships and supports sustainable business growth,” said Kristin Messerli, executive director of FirstHome IQ. “Doing good and doing well can align, and the mortgage industry is showing that leadership now.”