Surviving the squeeze: How young adults are navigating financial struggles
Soaring living costs, stagnant wages, the removal of subsidies and the reintroduction of toll fees have all made it harder for them to afford the basic necessities, let alone save or splurge on luxuries.
SOUNDER RAJEN26 Feb 2025 02:00pm
Photo for illustrative purposes only. Photo: Canva
Despite being often blamed for their spending habits, such as indulging in expensive coffees or avocado toast, young people today face much greater obstacles than mere lifestyle choices.
Soaring living costs, stagnant wages, the removal of subsidies and the reintroduction of toll fees have all made it harder for them to afford the basic necessities, let alone save or splurge on luxuries.
While some may argue that this generation needs to be more frugal, the reality is that external pressures are shaping their financial struggles in ways that previous generations didn’t experience.
Still, Gen Z has found creative ways to adapt and stretch their finances, finding innovative solutions to navigate this tough economic landscape.
However, as any young person today will tell you, the situation is far more complex.
Below, we explore some of the common financial struggles faced by young Malaysians, and how they manage to cope with these adversities.
RISING FOOD COSTS AND STUDENT BUDGETS
For many students, the issue of never having enough money for food is a constant struggle.
After paying for university fees, transport and other essentials, the remaining funds are often limited.
Sohara Hossain, a 28-year-old Mechanical Engineering graduate from INTI International University said that she often seeks out heavily discounted products nearing their expiry date and cooks at home to save on eating out.
"Even eating out at a mamak stall in the Klang Valley has become unaffordable.
"A simple plate of Maggi Goreng can sometimes cost as much as RM8," she said.
LEISURE ON A BUDGET
Another challenge for many young people is not having enough money left for leisure activities.
With the rising cost of entertainment, including pricey nights out at bars and clubs, many have opted for more affordable alternatives.
Jofiel Lim, a 21-year-old supply chain management student at UCSI University, said he prefers watching movies at home with friends rather than spending money on a night out.
While dining out and occasional nights at the cinema still happen, many Gen Zs prioritise free or low-cost activities, such as hiking, over expensive social events.
DEBT: A CONSTANT BURDEN
Perhaps the most significant financial challenge for most students and recent graduates is the burden of debt.
Whether it’s financing electronics or paying off university loans, debt seems to be an inescapable part of their financial landscape.
As a result, when they enter the workforce, they often struggle to save money, with most of their paycheck going toward necessities and loan repayments.
Daniel Lim, 25, a customer service executive, expressed frustration with the National Higher Education Fund Corporation (PTPTN) system, calling it predatory.
"They know we need help to study, and if we don’t take it, we can’t study at all.
"Then, we can’t get a job, so it’s a never-ending cycle of borrowing and paying back," Lim said.
He also pointed out that monthly installment plans for smartphones and tablets from telco providers add further strain, as many Gen Zs feel pressured to keep up with their peers’ lifestyles.
SURVIVING WITHOUT Fomo
To avoid falling deeper into debt, Lim advised his peers not to succumb to Fomo (fear of missing out).
"Live below your means, accept help when it’s offered, and don’t be ashamed of it," he said.
He suggested that his friends stay with their parents to save on rent and cook meals at home instead of eating out.
Lim also encouraged his peers to embrace "hand-me-downs" from family members and make do with older devices when parents upgrade their mobile phones, rather than constantly chasing the latest tech trends.
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