DUE to the ongoing pandemic disrupting many aspects of people’s lives, it was found that those aged from 25 to 44 (millennials) are struggling the most when it comes to meeting day-to-day expenses (41%) and report higher levels of bank borrowings in the last month (35%).
This is based on the latest survey by Standard Chartered, which also showed that 74% of millennials find it hard to manage their financials ever since the COVID-19 outbreak started.
“Malaysian millennials are indicating a sense of responsibility with their finances in the aftermath of the COVID-19 pandemic. There is no question that the crisis is a formative phenomenon that will shape this generation for the rest of their lives,” said Standard Chartered Malaysia managing director and CEO Abrar A. Anwar.
However, despite these significant challenges, millennials are the most likely generation to be in active pursuit of their long-term financial goals.
34% of Malaysian millennials are saving for a major purchase such as a new car or home (33% globally), compared to 20% of those over 45 (18% globally), while 45% are trying to save more for retirement (35% globally), compared to 44% of those over 45 (29% globally).
To meet these ambitions, 61% want to change their budget for daily spending and 28% started using a new money management or budgeting app since the pandemic began.
That being said, Malaysian Millennials are 340% more likely than those over 45 to have started a digital piggy bank or a coin jar, 65% more likely to have started using a money management or budgeting app and 150% more likely to have started using a savings or investment app for the first time during the pandemic.
Additionally, 67% had a positive experience in using new ways to manage their money since the start of COVID-19.
This embrace of new technology to help manage money amid the current economic turmoil may be why Millennials are more confident than any other generation that they can achieve their long-term financial goals.
More than one-third (36%) of millennials in Malaysia are more confident than they were before the pandemic started (46% globally).
In contrast, only 21% of Malaysians over 45 feels more confident they’ll reach their financial goals (31% globally), with those over 55 the least confident about achieving their financial goals since the COVID-19 outbreak began.
Meanwhile, across all the generations, the pandemic has made people more careful with their saving and spending and less likely to splurge. Over half of the respondents (54%) said they would save the cash in case of an emergency expense. – Nov 26, 2020
