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Despite growing financial awareness, many young professionals in the UAE struggle with financial stability, often feeling stuck in a cycle of poor financial planning. However, a recent survey by National Bonds reveals a shift in mindset, with 40% of Gen Z expressing confidence in their financial goals. UAE
Growing Financial Awareness Among Young Professionals
The survey found that 40% of respondents are on track to meet their 2024 financial goals, while 45% have partially achieved their targets. Compared to previous generations, younger individuals are becoming more proactive about financial planning. Gen Z (40%) and Millennials (36%) reported greater confidence in their financial aspirations, surpassing Generation X (32%). UAE
Rehab Lootah, Group Deputy CEO of National Bonds, noted this upward trend in financial commitment, particularly in retirement planning. She highlighted the role of financial solutions such as the ‘Second Salary’ savings plan, designed to help UAE nationals and expatriates build a supplementary retirement income.
Financial Struggles Persist
Despite this optimism, many young professionals still find financial stability elusive. Ahmed M., a 26-year-old Dubai resident, shared his frustrations about financial literacy. “I assumed I’d have it all figured out once I started working,” he admitted. “But as responsibilities piled up and the cost of living rose, budgeting became increasingly difficult.”
Inflation and rising living costs have made it challenging for Ahmed to save or invest. “I often live paycheque to paycheque, and that adds to my stress,” he said. “I wish financial literacy had been part of my education. Learning about budgeting and investing earlier would have made a huge difference.”
Fatima, 29, from Sharjah, echoed these concerns. Initially, she believed financial stability would come naturally with employment. However, after a year of living alone, she found herself struggling to balance rent and daily expenses. “Eventually, I moved back to my parents’ house to relieve some of the financial pressure,” she said.
She emphasized the need for open discussions about financial struggles. “Many people feel ashamed to talk about money issues. We need to create a space where young people can share experiences and learn from each other without fear of judgment.”
The Need for Financial Education
Both Ahmed and Fatima believe that financial education should start early. “If I had learned about saving and budgeting in school, I might not feel so trapped in this cycle,” Fatima said. She pointed out that unexpected expenses always arise, making it difficult to break free from living paycheque to paycheque.
To address these issues, young professionals are calling for more financial literacy programs. “Workshops and resources could help us make better financial decisions,” Ahmed suggested. “Instead of just surviving, we could start building real financial security.”
The Impact of Financial Anxiety
Experts warn that financial stress can have significant consequences. Dr. Sara Al-Mansoori, a psychologist, explained that financial anxiety often manifests as chronic worry, leading to physical symptoms like headaches and insomnia. “It affects personal well-being and professional performance,” she noted.
She added that constant financial stress reduces focus and hinders career growth. “People struggling with money often feel stuck, unable to pursue better opportunities. Promoting financial literacy and fostering supportive environments can help break this cycle.”
While financial challenges remain, increased awareness and proactive planning are steps in the right direction. With better education and open discussions, young UAE residents can gain the knowledge they need to achieve long-term financial stability.
