Generation Z, the generation born between the mid-1990s and the mid-2010s, is now the largest generation ever, comprising almost 30 per cent of the global population. We all have a stake in their future and success.
Given the looming economic crisis, the dizzying pace of technological advancement and the rapidly shifting social norms, the success of Gen Z will be hard-fought.
Gen Z isn’t shying away from any of this and is frequently lauded for being innovative, entrepreneurial and open-minded.
However, there is one skill they lack: financial literacy.
Through no fault of their own, as it’s not part of the current education system, their ignorance of this subject risks derailing their future.
It’s a risk that needs to be addressed urgently, given the massive downside.
Teaching Gen Z how to how to budget properly is a key part of what financial literacy entails, but the benefits of financial literacy go far beyond showing them how to deftly balance their paycheque with their love of avocado toast and creamy lattes.
Financial inclusion
Financial inclusion refers to the ability of individuals to access and use financial services and products that meet their needs and are affordable.
Financial literacy plays a crucial role in helping these youngsters understand and navigate the financial system, which can seem quite daunting to the uninitiated.
With the proliferation of digital payment systems, online banking and cryptocurrency, young people face more difficulty navigating the world of finance.
This can be particularly important for those who have historically been excluded from the financial system, such as low-income individuals, women and minorities.
Financial literacy can prevent youngsters from taking on excessive debt or falling victim to predatory lending practices, which can lead to financial exclusion.
It gives Gen Z the competence and the confidence to access and use the most appropriate financial services and products like savings accounts, loans and insurance.
Financial scams
There has been a sharp spike in financial scams in recent times. These scams are becoming more sophisticated and difficult to detect and can take many forms, including phishing emails, phone scams, bank impersonations and fraudulent investment schemes.
Latest statistics from the UK’s Financial Conduct Authority show that there has been an increase of 193 per cent in the number of calls from investors reporting suspicious investment opportunities over the past five years.
One of the most effective ways to combat financial scams is through financial literacy.
By educating Gen Z on the warning signs of a scam and the steps they can take to protect themselves, financial literacy can help them from falling victim to these schemes.
This may include teaching them how to identify phishing emails, how to verify the legitimacy of an investment opportunity and how to protect their personal and financial information online.
With the widespread access to various financial and investment products available to anyone with a phone and internet connection, educating youngsters on the inherent dangers becomes even more critical.
Financial literacy plays a crucial role in helping these youngsters understand and navigate the financial system, which can seem quite daunting to the uninitiated
Marilyn Pinto,
founder of KFI Global
The gig economy
The gig economy, also known as the sharing economy, is characterised by short-term contracts or freelance work.
It has exploded in popularity over the past decade, driven in part by technological advancements, and Gen Z is more likely to embrace the gig economy than any generation before them.
This is particularly due to the characteristics of Gen Z alluded to at the beginning of this article, namely: being innovative, entrepreneurial and open-minded.
Sixty-one per cent of Gen Z workers have freelanced in the past year, compared with 47 per cent of all workers, according to a survey by Upwork.
They revel in flexible work schedules, which enables them to balance work and other aspects of their lives; the opportunities for skill development and entrepreneurship, and in the ability to earn a steady income while exploring various career options.
There are, however, some challenges associated with the gig economy, the biggest one being the lack of financial stability that comes with irregular and unpredictable income streams.
Financial literacy, thus, becomes an essential tool for Gen Z’s success in the job market.
These youngsters must be able to properly manage their finances and plan for their future.
By understanding the fundamentals of budgeting, saving for retirement and investing, Gen Z can position themselves for long-term stability and success.
Social sustainability
Financial literacy also has broader societal implications that are critical for Gen Z.
By empowering young people to take control of their finances, we can help reduce economic inequality and build a more sustainable society, one that is less financially fragile and more financially resilient.
This is particularly important in light of the Covid-19 pandemic, which has exacerbated existing economic disparities.
It’s time to prioritise financial literacy and give Gen Z the tools they need for success.
Marilyn Pinto is the founder of KFI Global
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Huroob Ezterari
Director: Ahmed Moussa
Starring: Ahmed El Sakka, Amir Karara, Ghada Adel and Moustafa Mohammed
Three stars
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
