About 85% of Singaporean Gen Zs say they began saving before the age of 22, while nearly half the amount (41%) of millennials did the same, according to a new survey by Singsaver.
The survey, which was conducted from August to September, comprised the responses of some 1,000 Singaporeans from both demographics.
When it comes to sticking to their planned budget, about 65% of Gen Zs do so “often” and “very often” compared to just 56% of millennials.
However, more millennials (47%) are better at budgeting, saving, and investing on the whole than Gen Zs (35%). This may be possibly due to their added responsibilities and pandemic-induced economic uncertainty, says the comparison site.
When asked about their biggest challenges when managing their personal finances, 38% of millennials feel they do not have adequate knowledge and guidance when doing so, compared to 26% of their Gen Z counterparts.
According to the survey, millennials are considered to be aged from 24 to 39 years old, where a larger proportion are presumed to have already started work. This is compared to Gen Zs who are aged between the school-going ages of 18 and 23.
The economic uncertainty this year has also prompted 48% of Gen Zs and millennials to do more research on personal finance. The improved knowledge could be why 71% of those surveyed are confident that they have enough savings to tide them through three to six months of expenses should the need arise.
On investing, eight in 10 of both demographics say they invest, but only 60% of these respondents are “new to” or have a “basic understanding” of investing.
However, nearly two-thirds (57%) of the total surveyed still use a basic, low-yield savings account.
Notably, most Gen Zs (39%) cited retirement as the reason for their savings, while millennials (45%) largely sought financial freedom.
Both Gen Zs and millennials prefer to invest in bonds and stocks (59%), real estate (41%), and mutual funds (35%) as their top three investment products.
“As we look towards recovery, it is crucial for young Singaporeans to become more financially aware as they adapt to a new environment,” says Prashant Aggarwal, interim country manager of Singsaver.
“For millennials, whose concerns often lie in being sandwiched between taking care of their family and their parents, it is important to be forward-looking and plan for unforeseen circumstances. Meanwhile, for Gen Zs who are just kick starting their career, there is a need to adapt their mindsets and attitudes towards personal finance by consistently adjusting their spending habits,” he adds.
