A recent survey conducted by National Bonds highlights a growing awareness of financial challenges among young residents in the UAE.

The survey found that 40 percent of Gen Z respondents expressed optimism about achieving their financial goals, yet many participants underscored the necessity for greater discussions surrounding financial literacy.

For the second consecutive year, retirement planning has emerged as a key financial concern for Generation Z.

According to the findings, 40 percent of respondents reported being on track to meet their financial goals for 2024, while an additional 45 percent indicated they had partially achieved their objectives.

The data suggests a notable increase in financial confidence among younger generations, with 40 percent of Gen Z and 36 percent of Millennials feeling assured about their financial aspirations, compared to 32 percent of Generation X.

Rehab Lootah, Group Deputy CEO of National Bonds, noted the survey results as indicative of a rising commitment to financial stability, particularly in the context of retirement planning.

To support this commitment, National Bonds offers financial products such as the 'Second Salary' savings plan, aimed at assisting both UAE nationals and expatriates in accumulating supplementary retirement income.

Despite these positive indicators, some younger UAE residents express feelings of being 'trapped' due to inadequate financial planning.

Ahmed M., a 26-year-old Dubai resident, reflected on his initial belief that starting his career would provide a clear path to financial stability.

He acknowledged the overwhelming nature of adult responsibilities, particularly with rising living costs complicating budgeting efforts.

"With inflation skyrocketing and many services becoming monetised, it's hard for our generation to keep up," he remarked.

Ahmed articulated the challenges of living pay cheque to pay cheque, leading to considerable stress.

Similarly, Fatima, a 29-year-old living in Sharjah, shared her experience of moving back to her parents' house after struggling to manage rent and other expenses independently.

She pointed to the necessity for open dialogue on financial issues, stating, "Many people don’t talk about their financial struggles.

It’s crucial to create a space where we can share our experiences without judgement."

Both Ahmed and Fatima highlighted the absence of financial education in schools, with Fatima expressing that earlier exposure to topics like budgeting and financial planning could have alleviated her current situation.

The stress associated with managing finances can lead to severe emotional and psychological consequences.

Dr. Sara Al-Mansoori, a psychologist, cautioned that financial anxiety can manifest as chronic worry, which may result in physical symptoms such as headaches and insomnia.

Dr. Al-Mansoori affirmed that constant preoccupation with financial issues hinders personal well-being and professional performance, as it can diminish one’s ability to concentrate, ultimately affecting career advancement.

To address these concerns, there are calls from younger individuals for increased access to financial literacy resources and workshops, aiming to empower them to make informed financial decisions.