Some Young UAE Residents Say 'Trapped' In Cycle Of Poor Financial Planning

A recent survey by National Bonds showed that 40 per cent of Gen Z were optimistic about achieving their financial goals, yet, many still call for more open conversations on financial literacy. Retirement planning is one of the top financial priorities for Generation Z - for the second year in a row.

According to the survey, 40 per cent of respondents reported being on track to meet their 2024 financial goals, while 45 per cent stated they had partially achieved their targets. Younger generations are showing increasing financial awareness, with 40 per cent of Gen Z and 36 per cent of Millennials expressing confidence in their financial aspirations, compared to 32 per cent of Generation X.

Rehab Lootah, Group Deputy CEO of National Bonds, emphasised,“The results of this year's survey reflect a growing commitment among individuals to achieving financial stability, particularly in retirement planning.”

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She highlighted that to support this commitment, National Bonds offers innovative financial solutions, such as the 'Second Salary ' savings plan designed to help UAE nationals and expatriates build supplementary retirement income.

However, other Gen Z residents feel a pressing need for financial literacy. Ahmed M., 26, who lives in Dubai, believed that starting his career would come with a clear path to financial stability. "I thought I'd have it all figured out by now," he admitted. As he grew older, he realised that several responsibilities came with adulthood. The higher cost of living made budgeting difficult, and despite his efforts, he often found himself overwhelmed.

"With inflation skyrocketing and many services becoming monetised, it's hard for our generation to keep up," he pointed out. "I wish I had more financial literacy before joining the workforce. Understanding budgeting, saving, and investing would have made a significant difference." He often finds himself living pay cheque to pay cheque, which adds to his stress. "It's tiring knowing that I'm constantly just making ends meet."

Fatima, 29, resides in Sharjah and shared a similar sentiment. She also envisioned a straightforward financial future when she began working. "After a year of living alone and trying to manage rent with other bills, I realised it would be better to move back to my parents' house," she explained.

Like Ahmed, Fatima emphasised the need for open conversations about financial struggles. "Many people don't talk about their financial issues. It's crucial to create a space where we can share our experiences without judgement."

Fatima lamented the lack of financial education in schools. "If I had learned about budgeting, saving, and the importance of financial planning earlier, I might not feel so trapped in this cycle of living pay cheque to pay cheque." She described how the constant pressure to make ends meet has led her to feel exhausted and anxious. "Every month, I budget tightly, but unexpected expenses always seem to pop up. It's frustrating."

Both Ahmed and Fatima advocate for greater financial literacy initiatives. "We need workshops and resources that help young people understand how to manage their finances effectively," Ahmed suggested. "It would empower us to make informed decisions rather than just surviving from one pay cheque to the next."

As financial anxiety becomes more prevalent, experts warn that it can significantly impact an individual's life and productivity. Dr Sara Al-Mansoori, a psychologist, explained,“Financial anxiety often manifests as chronic worry, which can lead to physical symptoms like headaches and insomnia. This not only affects personal well-being but also hampers professional performance."

Dr Al Mansoori continued,“When individuals are preoccupied with financial concerns, their ability to concentrate diminishes. This can deter them from pursuing career advancement opportunities, resulting in stagnation. To break this cycle, it's essential to promote financial literacy and create supportive environments where individuals can share their experiences and seek guidance.”

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