Young Malaysians are developing strong financial fundamentals, according to a survey. Photo: Freepik
A lot is often said about Gen Z – sometimes known as Zoomers – the cohort born between 1997 and 2012.
Older generations often stereotype them as impulsive spenders, materialistic, financially dependent and driven by instant gratification.
But the Malaysian Financial Literacy Survey (RMFLS) 2025 by Financial comparison website RinggitPlus paints a very different picture.
The findings suggest that Malaysian Gen Z is, in fact, making steady financial strides with stronger saving habits and better awareness about money that those of the older generations.
The survey, conducted annually via an online poll of over 3,000 respondents nationwide, found that 40% of Gen Z respondents now save more than RM500 a month–up from 36% last year – while just 11% say they don’t save at all – still the lowest across all generations.
More young people are also planning ahead: 57% have already started preparing for retirement, compared to 53% in 2024.
“It’s a surprising but encouraging trend,” says RinggitPlus chief executive officer Yuen Tuck Siew.
“We’re seeing young Malaysians develop strong financial fundamentals. This is a generation that understands the value of saving early – and they’re turning awareness into better habits, supported by the tools and content available to them online,” he adds.
The survey also shows that 62% of Gen Z use AI-powered budgeting apps and robo-advisors or chatbots. Social media has also become key financial learning source, with 68% of Malaysians using platforms like TikTok and Instagram to learn about money.
“These digital touchpoints are helping young Malaysians strengthen the basics of saving and financial learning in a more accessible and relatable way,” Yuen adds.
Starting early
For software developer Joshua Rohan, 24, saving money isn’t just about being careful – it’s about being intentional.
“I started saving during my high school years by setting aside a portion of my daily school allowance,” he says, “and it’s become a disciplined habit that I’ve carried until now.”
He credits his family for instilling in him the importance of living below his means, planning ahead and preparing for the future.
“Those lessons continue to guide me as I work towards building a strong financial foundation,” says the only child, who comes from a close-knit family.
Joshua says saving is more than discipline; it’s about being intentional andbuilding a solid foundation for the future. Photo: Joshua Rohan
Today, Joshua uses digital platforms to track his spending and manage his savings and investments more efficiently.
“Unlike my parents who relied on traditional methods, I have instant access to financial information and tools. It helps me make more informed decisions earlier in life,” he explains.
Meanwhile, Muhammad Syawal Razan Shamsul Kamar, 17, from Negri Sembilan is still in school, but he says he is already thinking about money.
“I usually save when I want to buy something, like clothes or food,” he says. “I started saving at nine years old because there were always things I wanted to buy at the Friday market.”
For now, the second of two boys takes a goal-based approach rather than a long-term one, but he is fully aware of how social media has changed the personal finance game.
“It’s easier now to learn about money or even make money online,” he says. “People teach you how to do affiliate marketing or start small businesses. You can make money without any capital — just by being creative.”
Syawal walks the talk, sharing his own experience with quick, easy profit-making ventures — while navigating his youthful desire and fear of missing out (FOMO).
“I used to spend quite a bit on clothes, and to afford buying more, I’d sell my pre-loved clothes,” he says. “I bought a shirt for RM10 at a bundle shop, then I sold it for RM20. I used that money to buy more thrifted shirts and pants.”He agrees that Gen Zs are often misunderstood. “Some older people think we just like to spend for fun, but not everyone is like that. Many of us use social media to make money, not just to spend it.”
Rohan offers a deeper insight into the same issue: “Social media is a double-edged sword. It’s a great way to learn about money, but it can also create pressure to spend. I try to use it as a learning tool rather than a source of comparison.”
Old values, new tools
“Social media can be a powerful enabler for financial literacy, but it also needs to be balanced with credible information and real-world education,” Yuen cautions.
He notes that this mix of digital curiosity and pragmatic awareness is what sets Gen Z apart.
“They are not just more informed – they’re taking tangible steps to strengthen their financial habits. Fewer say they don’t save at all, and more can sustain themselves longer using their savings. That’s real progress in money management and emergency preparedness,” he says.
He adds that while older Malaysians may have relied on traditional saving and investment channels, the younger generation is taking advantage of a more developed fintech ecosystem.
“Gen X generally prefers unit trusts, real estate or Amanah Saham Nasional Berhad-style funds, while Gen Z are early adopters of newer, tech-enabled options like cryptocurrency and robo-advisors,” he says, adding that digital convenience does come with its own risks.
Rohan is quick to defend the balance: “For me, the key is maintaining perspective. By being mindful of what I consume, I’m able to take away useful information without letting it influence my financial priorities negatively.”
Shifting perceptions
Rohan is also aware that older generations sometimes underestimate how financially aware Gen Z actually is.
“Many in my generation are very conscious of financial pressures,” he says. “We use
multiple income streams and digital tools because we have to adapt.”
Syawal agrees that perception doesn’t always match reality.
“Some people think we just buy things for fun or to follow trends. That’s true for some, but not all. There are many who are serious about saving — and even using social media to earn,” he says.
Aware of the perception gap, Yuen says there is a need to bridge the awareness–action divide.
“We want to make financial education accessible and actionable — translating data into insights that help Malaysians make confident financial choices,” he explains.
For those trying to find a balance between lifestyle and saving, Yuen has simple advice:
“You don’t need big sacrifices, just make saving part of your lifestyle. Automate it, track it, and treat it as a routine. Financial literacy only matters when it turns into action.”
The key takeaway from the survey for older Malaysians, Yuen says, is Gen Z’s “healthy curiosity about money.”
“What stood out most is that Gen Z is not just more informed; they’re taking tangible steps to strengthen their financial habits,” he says.
As Rohan puts it: “Saving isn’t just about money. It’s about self-reliance and having choices later in life.”
And as Syawal sums up: “These days, there are so many ways to make money. You just have to be smart — and start early.”
