“Did you know that 8 out of 10 Singaporean youths within the age group of 18 to 29 are not confident about their current financial situation, while a staggering 9 out of 10 do not feel that they are financially ready to take on the future?”
Amidst the YOLO and FOMO culture that has sprung up amongst the youths of today, financial planning is increasingly taking a backseat to new and novel material products and experiences.
NOVEL SERVICES AND EXPERIENCES ARE GIVING RISE TO AN UNPRECEDENTED YOUTH MINDSET
Short for “You Only Live Once” and “Fear Of Missing Out”, the YOLO and FOMO culture of today has meant that many young adults are entering the workforce without a detailed plan for their financial futures, or even a short-term financial plan. Whether spending on material goods or services, the uprising trend of paying for “experiences” is another reason young adults are spending more than they used to. From Netflix to gym session subscriptions, services that did not use to exist years ago are now attracting young consumers by the thousands. The rise of FOMO can be attributed to social media, where young people can now see their peers living better and more fulfilling lives than they are. Although this is oftentimes an illusion, this comparison can affect the self-perception and confidence of young people. As a result, they start chasing material goods and experiences that cannot bring them long-term happiness, but prove to be a long-lasting strain on the pocket.
This behavioral trend can be explained away with “YOLO”. For the older crowd, this loosely translates to “Carpe Diem”, or seize the day. Young people feel that paying for unnecessary goods and experiences is worth the expense because they are able to derive a feeling of short-term happiness and contentment from it.
HOW FOMO AND YOLO AFFECTS FINANCIAL AND LIFESTYLE PLANNING?
Amidst the culture of FOMO and YOLO, financial and lifestyle planning has taken a backseat. Under the guise of “I’m still young, there’s always another day”, financial planning gets overlooked for gratification in the short term. Needless to say, this is extremely unwise.
ENCOURAGING YOUNG ADULTS TO TAKE THE PLUNGE
The good news is that young adults between the ages of 16 to 25 are more likely to have goals than any other age group. However, that does not necessarily translate to having practicable plans for achieving these goals. There is an urgent and obvious need to encourage young adults to start taking responsibility for their financial futures. One reason for this is because many young adults are still living with their parents and have little financial responsibilities such as providing for children.
This article is for informational purposes only and should not be relied upon as financial advice.