In recent years, impulsive spending among Malaysian youth has skyrocketed, fuelled by the convenience of online shopping, instalment payment services, and the allure of social media influencers.
With ads carefully curated to target their specific interests, young adults often find themselves caught in a cycle of buying things they didn’t plan for, simply because they’re a swipe or click away.
The combination of e-commerce platforms and services like Atome, Grab Pay, and Shopee Pay has made it easier to justify unnecessary purchases, distancing them from the idea of long-term financial stability.
FOMO And YOLO: Social Media’s influence on financial decisions
The growing influence of social trends like ‘fear of missing out’ (FOMO) and ‘you only live once’ (YOLO) is amplifying the problem, reported Berita Harian.
Many young Malaysians are making financial decisions driven by the need to stay updated with the latest gadgets, fashion, or lifestyle choices.
As a result, they are willing to take on personal loans or use ‘buy now, pay later’ services to satisfy desires that don’t necessarily align with their actual needs.
Consumer Financial Expert, Professor Dr. Mohamad Fazli Sabri, points out that the impact of FOMO and YOLO on financial habits is concerning.
“Borrowing to satisfy non-essential desires is a worrying trend. It’s alarming that many young people are willing to go into debt for things they don’t actually need,” said Dr. Mohamad Fazli.
He emphasises that debt should ideally be reserved for crucial needs such as education, housing, or emergencies, not for short-lived consumer goods.
53,000 Malaysians under 30 have racked up RM1.9 billion in debt
According to a report by the Credit Counselling and Debt Management Agency (AKPK), 53,000 Malaysians under the age of 30 have amassed a staggering RM1.9 billion in debt.
The report also highlights that nearly 30% of the workforce has borrowed money to meet basic needs, further underlining the financial pressures faced by the country’s younger generation.
Professor Dr. Mohamad Fazli, also Dean of the Faculty of Human Ecology at Universiti Putra Malaysia, stresses the importance of reassessing financial priorities among the youth.
“The social pressure to keep up with trends can lead to long-term financial difficulties,” he warns.
“It’s not just about wanting the latest phone—it’s about the mindset that ‘everyone has it, so I need to have it too.’ Peer pressure can be a dangerous motivator when it leads to poor financial decisions.”
‘Before borrowing, think critically about your ability to repay‘
Services like Atome, which promote instalment payments with seemingly low initial costs, are contributing to the problem.
These platforms make it easy for young people, including students, to accumulate debt without fully understanding the financial consequences.
While the appeal of immediate ownership is strong, the delayed financial burden can quickly spiral out of control.
Financial experts are now calling for better financial literacy education, especially among the younger population.
Dr. Mohamad Fazli advocates for more mindful spending and urges young Malaysians to adopt a critical approach to their finances.
“Before borrowing, think critically about your ability to repay. If you find yourself struggling, it might be time to consider cutting back on unnecessary purchases or taking on part-time work to manage expenses.”
Additionally, there is a growing consensus that financial education should be integrated into the school curriculum, helping young Malaysians develop healthy spending habits from an early age.
Experts hope that by equipping youth with the tools to make smarter financial choices, they can prevent the cycle of debt from becoming a permanent fixture in their lives.
