Millennials tighten grip on finances

Survey says millennials likely to pursue long-term financial goals with 34% savings for a new car or home

by LYDIA NATHAN / graphic by MZUKRI MOHAMAD

AROUND 74% of Malaysian millennials are having difficulties in managing their finances since the outbreak of Covid-19, according to Standard Chartered’s latest global survey.

The survey said millennials are 107% more likely to feel they have no control over bank balances compared to those over the age of 45, while 23% reported an increase in borrowings in the last month, compared to 15% of those aged 45 and above.

Despite this, the survey revealed that millennials are also most likely to actively pursue long-term financial goals with 34% savings for a new car or home, compared to 20% of those above 45 years old.

“About 45% of millennials are trying to save more for retirement compared to 44% of those over the age of 45. To meet these ambitions, half of Malaysian millennials want to better track and budget their spending with 61% stating a need to change the budget for daily spending, while 28% started using a new money management or budgeting app since the pandemic began,” the survey said.

Standard Chartered Bank (M) Bhd MD and CEO Abrar A Anwar said millennials are indicating a sense of responsibility with finances particularly due to the pandemic.

“There is no question that the crisis is a formative phenomenon which will shape this generation for the rest of their lives. Millennials are passionate about their causes and not afraid to push the envelope,” he said.

Additionally, 340% of millennials are more likely to have started a digital piggy bank, compared to those aged 45 and above.

“An additional 67% had a positive experience in using new ways to manage money since the start of Covid-19,” the survey said.

The use of technology is possibly the reason why millennials are showing confidence in reaching long-term goals, as more than one third or 36% are more confident than before the pandemic hit.

In contrast, only 21% of Malaysians aged over 45 feel more confident in reaching financial goals, with those aged over 55 being the least confident about achieving financial goals since the Covid-19 outbreak began.

Meanwhile, the survey also said globally and across all generations, the pandemic has made people more cautious with savings and spending.

“Over half of the respondents (54%) said they would save the cash in case of an emergency expense, while in contrast, only 3% said they would use the money for an overseas holiday,” the survey said.

RELATED ARTICLES

Wednesday, September 9, 2020

Glomac mulls foray into data centres

Tuesday, June 23, 2020

Do not be complacent

Tuesday, January 12, 2021

More fiscal support expected in 2021