Three choices, three financial lifestyles of young people
Ms. Ngo Mai Lan (23 years old, office worker in Hanoi) chooses saving as her top priority. With an income of about 15 million VND/month, she maintains the habit of deducting at least 30% of her income into a savings account immediately upon receiving salary.
Saving brings a sense of security and more proactiveness in the future. I don't have much pressure to enjoy it. What I need is a reserve to not be passive if there is an incident" - Ms. Lan shared.
However, according to Ms. Mai Lan, this choice also made herself refuse many parties and trips with friends.
In contrast to Ms. Lan, Mr. Phan Le Minh (25 years old, designer) prioritizes investment. After spending on essential needs, Mr. Minh spends most of the remaining money to invest in securities and skills training courses.
For me, investing is not only a way to increase assets but also a journey of self-development. I accept risks at this stage to be able to break through financially in the future" - Mr. Minh said.
However, Mr. Minh also admitted that investing requires knowledge and patience, not always bringing profits as expected.
Meanwhile, Le Mai Huong (22 years old, a student in Hanoi) chooses to enjoy life. "I think youth is for experience. Money can be earned, but youth is not. So I am not afraid to spend on travel, shopping or entertainment to be able to live every moment" - Huong expressed.
Also according to Mai Huong, this spending method also makes you sometimes fall into a state of being broke at the end of the month and having to depend on your family.
Advice on the spending problem of young people
According to Mr. Doan Ngoc Hung - Director of Property Management, Hub Finwell, FIDT Investment Consulting and Asset Management Joint Stock Company - there is no general answer for whether to prioritize saving, investing or enjoying. The most important thing is that each person needs to clearly define their financial goals.
In the concept of Financial Lifecycle, the youth period of 20 - 30 years old is the stage of building a foundation of assets. This is the time to focus on increasing income and managing spending effectively. However, each person will have a different way of spending depending on personal goals" - Mr. Hung said.
In fact, young people are currently divided into two groups: One group is more about enjoyment, less interested in finance; the other group actively accumulates early. The main difference is due to needs and financial understanding. Also according to experts, there are three main reasons why many people are struggling in managing spending.
Firstly, because they are young, many people have not clearly defined financial goals, so it is easy to spend emotionally. Secondly, although many people have goals, they lack appropriate management methods. Thirdly, the impact from the surrounding environment such as how friends spend, life needs... makes it more difficult to control spending" - Mr. Hung explained.
To balance accumulation and enjoyment, experts recommend that young people should save first and spend later.
Each month, you need to determine a fixed savings amount, then allocate it to essential expenses and enjoyment needs. Instead of scattered spending, young people should optimize experience, meaning spending less but bringing higher emotional value" - the expert said.
In the context of increased costs, the spending problem of young people has become a social problem. Whether choosing to save, invest or enjoy, the most important thing is still to understand the goal and be ready to trade for the future. Enjoyment is necessary, but should be at a basic and controlled level.
