I had a conversation with a few of my Gen Z colleagues, and they expressed concern about their limited savings at the end of the day. Personally, I believe one of the contributing factors to this situation is the easy accessibility of various conveniences. For instance, some of my Gen Z colleagues opt for 18-month installments to purchase the latest iPhones, making monthly payments of RM300. In the past, such credit options were unheard of, and I have never spent more than RM2000 on a smartphone.
The prevalence of modern conveniences, like the Grab app, allows Gen Z to effortlessly order food and rides with just a tap on their smartphones. In comparison, back in the day, we had to carefully consider the costs of ordering food over a landline or taking a taxi, as they often came at premium prices. However, it's essential to acknowledge that the convenience provided by services like Grabfood/Foodpanda and Grabride comes at a cost, as they are not exactly cheap.
Today, numerous businesses entice customers with subscription offers, touting the ease and seamless access to their products or services. However, it's essential for consumers to be cautious about the long-term financial implications. Subscriptions, especially when accumulated, can sneakily burden individuals and families with ongoing expenses.
While it's not solely about whether Gen Z individuals have savings or not, there is a need for them to adopt a more frugal mindset and learn from the experiences of the Baby Boomer generation, particularly how their parents lived after World War II. Understanding the value of saving and making wise financial decisions can help them build a more secure financial future.