Millennials' and Gen Zs’ interest in personal finance is a sign of shifting priorities among younger Filipinos. Young adults are now prioritizing their future and are on the right track.

According to research from BSP, young adults exhibit higher financial literacy than the middle-aged and senior cohorts. Today’s generation of young adults is a new breed—full of ideas, creative, hard-working, ambitious, and career-driven. There’s a mindset shift among young Filipinos, and fulfilling their goals could be a matter of keeping their future priorities in check as early as now.

Moving Up and Preparing Ahead in Life

A recent study shows that Filipino Gen Z workers are in pursuit of financial stability. They are taking steps to control their financial future. However, aside from focusing on career advancement, they must also put the same zeal into their personal finances and see the value of making critical sacrifices today for a more secure future.

Millennials, Gen Zs, and future generations must understand that life will bring a lot of surprises as they age, and most of them will cost a lot of money. 

Fortunately, young adults still have time to prepare for life’s surprises. The TVM concept will help you understand how time can be a person’s greatest asset: the more time there is, the better the chances for wealth to grow. Money can grow exponentially if saving and investing are properly undertaken and done regularly. 

Invest now to prepare for life’s milestones

Investing at a young age will give you an advantage over someone who starts late, even if the latter invests more. Start at a realistic monthly savings target and periodically increase that amount as income increases. Invest the amount regularly. In a few years, the nest egg will grow fast and will be able to finance many of life’s important events like marriage, children, education, home, travel, aging parents, and retirement. 

Control financial losses

Your risk appetite affects the way you invest. But getting a head start in investing will help you be more in control of potential losses and still achieve your goals. If you are an aggressive investor, you will have time to recoup losses. If you are a conservative investor, you can still follow the slow but sure way. On the contrary, when you lack time, being aggressive will be too risky and being conservative will probably not deliver the desired result. 

Manage risks

Time is also a great risk manager, and you’d want it to be on your side when it comes to investing. The stock market swings can be smoothed out over time, pooled funds like UITF (Unit Investment Trust Fund) or Mutual Funds can grow properly, real estate can achieve capital growth, and businesses can generate much revenue. You can also opt to retire earlier than the customary retirement age if you prepare earlier and enjoy financial freedom at a younger age than your peers.

Prioritize your future as a young adult

The mindset shift among millennials and Gen Zs is a step to a more secure future. There are advantages to knowing your goals and working towards them at a young age. It also matters to know your options on income diversification to maximize your earnings today and set the road to a brighter and more secure future.

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