The Gen Z dilemma: spend, save, or invest?

You want to travel. You want a home. You want to invest. But can you really have it all?

Unlike the general assumption, Gen Z isn’t abandoning traditional financial goals, they’re just redefining what success looks like to them. Owning a home or starting a family still matters, but so does mental wellness, personal identity, and living meaningfully in the now. 

This shift has sparked a new tension: How do you enjoy life today without sacrificing tomorrow?

Inflation and rising living costs add to the pressure to stay financially independent, and makes achieving balance feel almost impossible.

Add to that: “They’re not just trying to move on; they’re trying to upgrade their lives in a way that looks and feels meaningful,” HELP University Department of Behavioural Science acting dean Dr Victor Goh Weng Yew said during the recent EdgeProp YouthFest 2025.

Goh explained how social media has amplified the pressure to “have it all”.

“Back then, just moving out was a win. Now, the house has to meet a certain standard, and the neighbourhood has to have a certain vibe,” he added.

Yes, the pressure to have it all can be overwhelming, but it doesn’t mean you have to give up one or the other.

The right approach to money

When it comes to financial goals, a one-size-fits-all approach will not work for everyone. Your dream of buying a new car or a new house may happen at different points in life compared to others – and that’s completely okay!

By focusing on the fundamentals, you can build financial stability while indulging in things that spark joy:

1. Save smart and consistently

Make use of the right structure and tools to build financial habits. Digital banks like Boost Bank have tools like Savings Jars that can simplify your monthly savings.

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“Our app allows people to automate their savings by creating different jars for different goals. The key is to start now, even if it’s small. Once you put it aside, you don’t have to think about it anymore,” Boost Bank CEO Fozia Amanulla said.

Split your Jars according to your expenses or goals. For example, your “Needs” Jar may cover essentials such as groceries or rent, and your “Goals” Jar could fund holidays or a new car purchase.

2. Spend within a budget, so you have room for ‘fun’ expensesWhat’s crucial is to track where your money goes. Whether you use a budgeting app, a spreadsheet or simply your bank app’s transaction history, having visibility over your spending patterns alerts you to any small adjustments needed along the way to avoid financial stress.This structure helps you enjoy life in the moment without jeopardising your future.

3. Invest your money in places that grow your money.

As explained in our “Making sense of compounding interest”, money set aside early can quietly grow in the background if you stay consistent, especially with the compounding interest benefit offered by Boost Bank.

With Boost Bank, you can earn up to 3.3% p.a. daily interest with Special Jars like the Hello 2026 Jar on your savings – making your Ringgit work for you without having to lift a finger.

What does smart saving look like in your 20s?

Smart saving in your 20s is about building a strong financial foundation. Once you’ve mastered the fundamentals of saving, spending, and investing, your first milestone should be an emergency fund worth three to six months of essential expenses.

Having this buffer allows you to handle unexpected costs without throwing your finances off track.

Taking a leaf out of a young investor’s book, property agent Noah Pua, 19, shared that starting his career in the industry at an early age has helped him understand the investment market and build better money habits.

“I use the commissions I earn to build my savings first before spending on anything else,” he shared during the YouthFest event. This approach prevents you from being too easily sidetracked by immediate wants and dipping into what could have been your long-term savings.

Once your emergency fund is established, you can focus on long-term habits, like increasing your savings and investments.

The key is to think of investing as a marathon, not a sprint. Take the time to identify your short-term and long-term goals, start small and adjust along the way.

Start today for long-term financial stability

Financial independence in your 20s is not about cutting out joy; it is about funding it wisely. Start small, track your progress, and increase your savings rate as your income grows.

With the right structure, you don’t have to choose between enjoying your youth and building your future. You can have both.