Spend, Save or Struggle? A Gen Z Money Roundtable
We asked nine young people about their thoughts and habits when it comes to managing personal finances.
Nancy, 23 Oa, 19 Jasmine, 18 Aayush, 24 Cheung, 29 Justin, 23 Kate, 23 Jishnu, 23 Sam, 26
1. When and how did you first realise the importance of managing your salary?
Sam: My parents always emphasised saving and budgeting, instilling a sense of financial responsibility in me. However, the true realisation came when I received my first paycheck from a part-time job. Holding that check in my hand, I felt a sense of independence and self-sufficiency that was new to me. At that time, I realised earning money wasn’t just about spending; it was about making thoughtful choices. I learned to prioritise my expenses, save for future goals, and understand the value of money. Managing my income became essential for achieving my aspirations.
Nancy: I first realised it when I became financially independent. My fixed expenses have increased significantly compared to my student days, because I’m responsible for paying a substantial monthly rent.
Oa: When I was in year one of university, I started having more social activities that required spending money! Also, I began earning money through part-time work, and that was when I realised that income needs to be managed properly to be sustainable.
Justin: Starting my first job after graduating from university meant being financially independent, and with that came the realisation that my salary was all the money that I would have, and I had to take care of my spending.
Kate: When we were being asked to pay six months of rent upfront before we’d started working, I wanted to make sure that if I was ever in that situation again, I would be able to handle it myself.
Jishnu: I realised the importance of managing money at an early age. My parents always made it a point to educate me about the worth of money and the importance of saving. They taught me that money was the result of hard work and that it was a finite resource.
2. How do you normally allocate and spend your salary?
Sam: I allocate my salary in a way that balances savings, expenses, and family support. About 40% of my income goes to saving and investing. This helps me build a financial cushion and plan for future goals, like buying a home or retirement. Another 40% goes toward my daily living expenses. This includes rent, utilities, groceries, and entertainment, ensuring that I can maintain a comfortable lifestyle. I dedicate the rest 20% to support my parents, contribute to their well-being and show my appreciation for everything they’ve done for me.
Nancy: I allocate 35% of my salary to rent, 30% to meals and other living expenses (such as commuting and clothes), and 10% to monthly travel back to my hometown. The rest goes into my savings.
Oa: My income mainly goes towards food, transport, clothes, social activities and travel. I don’t have a strict budget plan. If I notice I’ve spent too much on a particular day, I’ll try to spend less over the next few days.
Jasmine: I usually set aside 2,000 Hong Kong dollars as savings and another 1,000 as backup money after I get paid, just in case I overspend. That way, I’ll still have money left by the end of the month. I also make sure my spending on non-essentials doesn’t exceed a third of my salary, because I’m worried about overspending.
Cheung: I feel my assets aren’t large enough to need management yet. During COVID, I bought Hong Kong stocks at their peak. They’ve since dropped and stayed at about half the purchase price for years. I also bought funds on Alipay, which plunged after purchase. A year later, I painfully sold everything. Since then, I have followed the principle “If I don’t manage finances, my money stays with me,” and only consider fixed-term bank deposits.
3. How important is financial management to you?
Aayush: The financial attitude or behaviour is probably the most important thing in personal finance, as opposed to financial literacy. Because good literacy is nothing without good behaviour.
Oa: I think financial management is really important! If you know how to use your money wisely, you can make it grow. Plus, keeping track of how much you’ve spent and earned helps you plan future expenses better.
Jasmine: Financial management is extremely important to me because it affects the quality of my life. I track my daily spending and monthly income. As long as I budget properly, I don’t have to worry as much when spending by the end of the month. If there’s something important to buy or an emergency, I’ll be able to handle it.
Jishnu: Financial management is extremely important to me as I grow older, so do my responsibilities. Managing my finances is no longer simply about saving up money for something expensive and shiny in the future; it’s about being able to afford a house or support a family in the future.
Sam: Financial management helps me achieve my goals, such as travelling and pursuing my passions. Having a solid understanding of financial management allows me to allocate my resources effectively, ensuring that I can enjoy the experiences I value without overspending or falling into debt. It also helps me avoid impulsive purchases and encourages me to make informed financial decisions. A healthy financial status, in turn, provides peace of mind and security. When I manage my finances well, I can focus on what truly matters to me, such as personal growth and enjoyable experiences.
Moreover, good financial management enables me to plan for the future, whether that means saving for retirement, investing in opportunities, or simply having a safety net for unexpected expenses. Ultimately, it empowers me to lead a more fulfilling life, allowing me to balance my desires with my financial reality. In today’s fast-paced world, being financially savvy is not just an asset; it’s a necessity for achieving long-term happiness and stability.
4. When and how did you learn about financial management and investment?
Nancy: Most of what I know about financial management comes from Chinese social media, where peers my age—fresh graduates working in Hong Kong with similar financial situations—share how they allocate their salaries. I’m not very interested in investment, and I don’t have much to invest. Considering myself a super conservative person, I focus less on investment than on other aspects of financial management.
Oa: I’ve learned about financial management and investing mainly through family education—especially from my dad! I think it’s quite good because I can trust his advice and follow it with peace of mind, plus he has a lot of experience, so it feels more secure. The downside might be that being too focused on playing it safe makes me less willing to try other investment methods, which could mean missing out on better returns.
Jishnu: I mostly learn about financial management and investment through my dad, who is a former investment banker, and my friends who are into investing in standalone stocks.
Jasmine: I learned about financial management and investing through online resources—seeing how others budget their income and listening to their experiences. These learning methods are convenient, and there’s loads of information available. However, not all of it applies to me, and it’s easy to fall into comparisons, questioning why I can’t save as much as others. But actually, everyone’s lifestyle is different.
Aayush: My prudent financial attitude was instilled by my parents. My mom didn’t instruct me directly, but I picked it up from her. After I graduated and was about to earn a serious monthly salary and enter financial independence, I read books including The Psychology of Money by Morgan Housel and I Will Teach You To Be Rich by Ramit Sethi. I think in between that and my very first bit of earned money in 2017, I watched a decent amount of self-help YouTubers, including Thomas Frank, Matt D’Avella, and Two Cents, for personal finance advice too.
Kate: There’s a lot of educational content which comes up a lot on platforms like Instagram, but I think I probably learn the most by having open and honest conversations about finances and financial management with people in a wide range of financial situations.
Sam: I first learned about financial management and investment at university. Studying finance at university provided a structured learning environment, where I gained comprehensive knowledge of essential theories and principles. However, the cost of tuition can be significant, and the curriculum sometimes emphasises theoretical concepts over practical, real-world applications.
Financial news and live broadcasts also allowed me to stay updated on current market trends and economic developments from different perspectives. On the downside, the constant influx of information can lead to confusion or anxiety, especially when news conflicts. It can also encourage impulsive reactions to market fluctuations driven by emotional responses to the news. Sometimes, the media sensationalise events to attract viewers, leading to a focus on short-term market movements rather than long-term strategies.
Issac Sin, 17, from the HKFYG Lee Shau Kee College, also shares his point of view.
A 2024 survey from HSBC showed that on average, Gen Z starts investing by the age of 20, eight years earlier than other generations. Despite sufficient resources and knowledge at my disposal regarding financial management, ironically, just like my friends, I find myself struggling with daily planning on expenses, let alone a so-called “future plan” for myself.
Financial management has always been essential, which I learned in high school. But it is only when I was about to graduate that I truly realised its importance. As such, I have been setting short-term goals and reducing my spending to manage my money better.
Unfortunately, the ubiquitous temptations of living in the city can break my fragile willpower anytime, ranging from new smartphones, snacks, video games, you name it. So every time these irresistible urges dominate my reason, I have to bear the cost. Ultimately, it is not surprising to witness that all my efforts have become futile.
In an endeavour to make things right, I have decided to use the 50/30/20 rule to allocate my money effectively, where I will spend 50% of my money on needs; 30% on wants, and 20% on savings. At first glance, it works perfectly fine, with me being able to save five times more money than before. But in the end, it is just a matter of time before my reckless behaviour destroys any progress I have made.
Meanwhile, seeing the many successes from investment, I also try to invest 30% of my money into Gen Z’s favourite investment portfolio, such as stocks, NFTS and cryptocurrency. Nevertheless, with limited knowledge, I find it complicated to invest even with the guidance of my family, so it is only natural that I have more deficits than profits.
But there is still a silver lining for me. I know financial digital tools are the last resort for my financial management. I set mandatory upper limits on spending money and automate my savings with a specific amount of money regularly. Over time, with the tools being easy to navigate, I am more comfortable with digital tools and more capable of handling my money than before. Now I am working hard to fulfil the plan I once promised myself. ■
