Rising costs no excuse to ignore financial planning, warns financial advisor

SHAH ALAM – The pressure of the rising cost of living should not be used as an excuse for young people to neglect financial planning.

Financial expert Kenny Chong Ching Shon said such a mindset must be changed to ensure the group has sufficient basic savings for retirement.

He said most young people today preferred to adopt a carefree lifestyle and did not have long-term financial plans, including owning their own assets.

"Many young people today are burdened with student loans after completing their studies. They only earn a moderate income, and owning a house has become an increasingly distant dream.

"In the future, young people may prefer to work remotely and choose not to own a car due to its high cost and depreciation," he said.

He emphasised that financial literacy was not about becoming wealthy, but rather an effort to build a basic savings foundation to support life in old age.

"I fully understand the financial pressures faced by young people, but that is not a reason to completely disregard financial planning," he added.

Chong categorised young people into three groups.

The first comprises high earners supported by well-off families who tend to pursue a materialistic lifestyle.

The second category, he said, consists of cautious savers – individuals who spend wisely and are willing to take on weekend side jobs to increase their income.

"The third group includes spenders who spend unconsciously, as they continue to rely on financial support from their parents.

"This group is increasingly common among middle-class Chinese families. The question is, for how long?” he said.