Exploring the Financial Landscape for Young Adults

Navigating the Financial Landscape for Young Adults

Financial well-being, an essential ingredient of individuals’ overall well-being, is strongly associated with personal financial success, work productivity, and developing a healthy economy. Young adults, who act as the leading global workforce, have been struggling with heavy student debts, high rates of housing debt, and an unstable labour market. Further, their insufficient financial knowledge and irresponsible financial behaviour caused by the lack of future time perspective have cost them the ability to consume or accumulate savings for their later retirement.

Not surprisingly, these factors have degraded their current financial well-being, compromised their financial security and led to subsequent long-term pressure on the public and private monetary systems. Thus, understanding how to enhance their financial well-being is significant in dealing with financial-related stress and coping with financial shocks. It also draws implications for designing effective strategies and educational programmes to combat the economic downturn and improve work productivity, financial resilience and satisfaction.

In this insightful study by Sunway University's Dr Adam She Long and colleagues, we delve into the intricate relationship between young adults' future time perspective and their financial well-being. By unravelling the nuances of this connection, we aim to uncover critical insights/factors that enhance economic well-being among young adults.

Future Time Perspective: 
The concept of future time perspective refers to how individuals envision and plan for their future. For young people, this aspect becomes pivotal in shaping their financial behaviours, influencing everything from financial decisions to overall well-being, including economic well-being.

Financial Goal Clarity: 
The research highlights the profound impact of having clear financial goals on young adults’ economic well-being. When young adults have a precise vision of their financial objectives, it guides their present decisions and fosters a sense of purpose and direction for the future. The article explores how enhancing financial goal clarity can contribute significantly to economic well-being.

Subjective Financial Knowledge: 
The study underscores the subjective aspect of financial knowledge, emphasising that young adults’ understanding of financial matters plays a pivotal role. Beyond objective financial knowledge, individuals' perceptions and beliefs about their financial acumen influence their decision-making processes. The article delves into how improving subjective financial knowledge can empower young adults to make informed and confident financial choices.

Responsible Financial Behaviour: 
Another critical factor explored is responsible financial behaviour. The study suggests that cultivating responsible financial habits contributes to greater economic well-being and resilience. From budgeting and saving to debt management, how young people approach their financial responsibilities has far-reaching implications for their financial well-being. The article examines how promoting responsible economic behaviour can be a cornerstone for building financial resilience in facing financial challenges.

Implications for Financial well-being and resilience: 
The study synthesises the findings and explains the implications for financial well-being and resilience among young adults. It highlights the interconnected nature of future time perspective, financial goal clarity, subjective financial knowledge, and responsible financial behaviour in shaping the ability of young adults to navigate the dynamic landscape of personal finance. Understanding the interplay between future time perspective and economic well-being becomes paramount in a rapidly evolving financial landscape. This article offers new insight for navigating the financial journey of young adults, shedding light on actionable steps to enhance their resilience and empower them to face the future with confidence and preparedness.


Dr Adam She Long
Sunway Business School 
Email: @email

This article has been adapted from Long She, Arghya Ray & Lan Ma (2023), Future time perspective and consumer well-being of millennials: implications for consumer resilience, DOI: 10.1108/IJBM-08-2022-0341