Known for being tech savvy and media smart, Gen Z’s are also likely to fall into financial debt from making these 5 financial fallacies.

Good day, fellow Malaysians! Now, let’s get to talking about the ‘Z’s – Generation Z, that is! It’s like they walked right off a sci-fi movie set, isn’t it? They’re the tech-savvy, globe-trotting, social media kings and queens of today.

Born between the mid-1990s and the early 2010s, the Gen Z’ers are stepping out from the comforting shadows of their textbooks, into the brilliant yet daunting sunlight of adulthood. Along with this transition comes the advent of financial independence – a beast that looks far scarier than any SPM or STPM exam, I guarantee! And oh boy, are they stumbling.

Have you ever watched a baby orangutan learn to climb for the first time? Cute, yes, but it’s a bumpy road (or tree, as it were). Similarly, our Gen-Z friends are making quite a few slips and slides on the financial tree, some of which could have serious long-term impacts.

We’ve identified five key money mistakes they’re making that we’d like to address in this spirited jaunt into the world of ringgits and sensibility.

Now, before we head off on this enlightening journey, let’s just clarify – we’re not here to point fingers or chuckle at our young friends’ missteps. Instead, we’re here to learn, guide, and share wisdom in a way that’s both fun and informative.

#1. Z-Score: Failing the Savings Test

First on our list is the infamous ‘not saving enough’ debacle. According to the cyber whizzes at GoBankingRates, a whopping 61% of Gen-Zers have savings that wouldn’t even fetch a decent laptop, ringing in at less than $1,000 (or RM5000).

Emergencies don’t announce their arrival folks; they’re like those uninvited guests at your Raya open house. To combat this, let’s hark back to our school days and recall the magic of mathematics – the 10% rule. Make a 10% tribute from your paycheck to the gods of savings and emergency funds.

Get into the habit, and before you know it, you’ll be the CEO of your savings realm!

#2. Risk It for the Biscuit: The Investment Saga

For Gen-Zers, retirement is as distant as Pluto, isn’t it? But folks, the space rocket to a comfortable retirement is fueled by investments made right now!

Think of investments as that delicious nasi lemak. Sure, you could wait to buy it later, but the earlier you get it, the hotter and tastier it is!

So, get cracking on those investment eggs, whether it’s stocks, mutual funds, or a trusty KWSP. With steady contributions and time on your side, your investment portfolio will grow faster than a durian tree in season.

#3. Don’t Let Your Wallet Do The Cha-Cha Slide

Ah, the Gen-Z mantra: “Live in the moment!” And why not, right? But doing the cha-cha slide with your wallet today could mean dancing with debt tomorrow.

Those trendy boba teas, and that tempting ‘buy now, pay later’ mantra, might feel gratifying today, but remember, they’re like durians – they leave a potent aftertaste (of debt).

Stick to a budget and do a regular ‘financial detox’; weed out unnecessary expenses and you’ll soon find your bank balance humming a happier tune.

#4. The Side-Hustle Shuffle

In the era of the gig economy, sitting idle is as pointless as a ‘kuih lapis’ with no layers! Gen-Zers, it’s time to hop onto the side-hustle train.

Be a FoodPanda rider, freelance on Fiverr, bake some cookies, or design websites – just do something! This extra income could be your ticket to debt-free living or the seed for your investment garden.

Let’s start dancing to the tune of the side-hustle shuffle!

#5. Social Media Money Trends: The Fad Fallacy

Social media trends are as fleeting as a KL downpour. One minute it’s there, the next it’s gone, leaving behind just a little mess.

While it may be tempting to jump on the latest #FinanceHack trend, remember that these are often short-lived and might not offer lasting solutions.

So, my young friends, ditch those ‘cash stuffing’ envelopes for sound financial habits, because real financial stability is a marathon, not a TikTok dance challenge!

Conclusion

We’ve reached the end of our financial expedition, my friends. Here’s hoping we’ve equipped our Gen-Z buddies with the map and compass to navigate the jungle of financial independence.

Remember, the secret sauce to a financially stable future isn’t some quick-fix Instagram trend or that shiny new iPhone 23, but good old-fashioned habits like saving, investing, budgeting, and hustling.

So, here’s to the Gen-Zers – may you transform from financial orangutans into the agile, Tarzan-like financial gurus of the future! Continue to embrace the thrills of life, but remember – financial independence is the best thrill of all.

Don’t let financial blunders be the ‘Z’ in your generation. Stand tall, stand wise, and let’s rewrite the story to: Gen-Z – the Zen Masters of Finance!

 

Are you a Gen-Z’er and what have you done to secure your financial future? Let us know in the comments down below.