While most people tend to overlook on their money management, it is important for us to be well-equipped with the awareness on the rise in the cost of living.
Who are Gen-Yers?
• usually born between 1980s and early 1990s
• commonly regarded as the “here and now” generation
Because of technology and the Internet, instant gratification has led the Gen-Yers to get too obsessed with new gadgets and attire. Financial literacy gives members of Gen-Y the opportunity to earn, save and spend and more concerned with future goals as well as present.
Expected salary for Gen-Yers with a tertiary qualification
• RM2,500 to RM2,800
After deducting their expenses, such an entry salary leaves little for savings and investments. Most fresh graduates are happy with getting more than the expected salary but choose not to be choosy due to the imminent economic crisis.
Gen-Yers agree that their main buying habits or major expenditure is on food and transportation such as petrol and car maintainance. If inflation increases to about 5% after the implementation of the Government Service Tax ( GST), then the Gen-Yers are likely to be affected the most with the high cost of living expenses.
Most of them try to save at least 20% to 30% of their salary or allowance and set money aside for special occasions and emergencies.
What should be done?
Gen-Yers need to have in depth financial knowledge and practice prudent financial
management.
Quick Facts:
• Over 47% of young adults aged between 18 to 35 years old are having serious debts due to living beyond their means.
• A total of 1,940 youth below 25 years old had been declared bankrupt since 2007 until June this year.
• 579 out of that total were declared bankrupt in the first six months of 2014.
Among the government measures to curb youth bankruptcy are to create awareness of the dangers of bankruptcy through the Credit Counseling and Debt Management Agency (AKPK) and Insolvency Department.
The sooner you get your finances in order, the easier it will be to maintain them down the road due to increasing commitments. Being declared bankrupt below the age of 25 due to poor command of our finances is harmful for your long and potential future.
Read More : http://MyFinance.com.my/
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