RMFLS 2025: How Gen Z and Lower-Income Malaysians Are Quietly Building Better Money Habits

Samuel Chua

16th October 2025 - 5 min read

While middle-income Malaysians face tighter budgets and rising living costs, two groups are quietly moving in a different direction: Gen Z and lower-income earners.

Our RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2025 finds that both groups are saving more regularly, planning ahead, and showing steady improvements in money management. The progress may be gradual, but it reflects a clear shift toward better financial habits.

Gen Z Is Getting the Basics Right

Born between 1997 and 2007, Gen Z are often seen as impulsive spenders who value experiences over savings. Our data tells a more encouraging story.

Four in ten Gen Z Malaysians now save more than RM500 each month, up from 36% in 2024. Only 11% say they do not save at all, the lowest across all generations, compared to 18% of Millennials and 24% of Gen X. Nearly nine in ten Gen Z respondents are setting something aside every month.

Their emergency savings are improving too. Almost half, or 47%, can now cover at least one to three months of expenses if they lose their income, compared to 43% last year. Those who could survive less than a month dropped from 25% to 21%.

Financial experts typically recommend having three to six months of savings. Gen Z is not there yet, but for many dealing with entry-level salaries and student debt, having even a few months of savings represents a strong foundation.

Why Gen Z Is Changing Course

Money conversations are reaching young Malaysians earlier and from more directions.

Schools, social media, and financial content creators are helping normalise financial education. On platforms such as TikTok and Instagram, bite-sized money tips are as common as lifestyle content.

At the same time, digital tools are removing barriers. Budgeting apps and automatic savings features in digital banks and investment platforms have turned saving into a background habit rather than a chore. For many Gen Z Malaysians, checking their finance app now feels as natural as checking their messages, showing how financial literacy is becoming part of everyday life.

Still, Gen Z faces real challenges including slow wage growth, rising living costs, and competitive job markets. But small, repeatable actions like setting up automated savings or tracking expenses are proving to be effective long-term habits.

Lower-Income Malaysians Are Making Meaningful Progress

Malaysians earning below RM2,000 a month face the toughest squeeze. Yet our survey shows a quiet shift among this group toward more structured financial habits.

More than half, or 55%, have started planning for retirement, up from 48% last year. This is the biggest improvement across any income bracket. It suggests that early financial education and workplace programmes are reaching more people who previously lacked access.

Financial inclusion initiatives from banks, government agencies, and digital-first platforms have helped lower-income Malaysians open savings accounts, access insurance, and track spending more easily than before.

Smarter About Debt

When it comes to debt, lower-income Malaysians are becoming more cautious. About 36% of respondents in this group avoid Buy Now, Pay Later (BNPL) services entirely because they are concerned about overspending. This is the highest rate among all income groups.

Our data also shows that 63% of Malaysians earning below RM2,000 always pay off their BNPL instalments on time, compared to 84% among those earning RM10,000 or more.

For financially vulnerable groups, this discipline reflects a growing awareness that convenience credit can quickly become expensive if not managed carefully.

Lessons from Gen Z and Lower-Income Earners

Consistency beats intensity. Saving RM200 or RM500 a month might not sound like much, but doing it regularly builds both money and momentum. Over time, those small efforts create stability and confidence that one-off efforts cannot match.

Our advice has always been: Be selective, not reactive. Saying no to tempting offers such as Buy Now, Pay Later deals or unnecessary credit cards helps keep finances stable. The lesson is simple: not every financial product is meant for every situation.

Plan early, even on a tight budget. Retirement planning may feel distant for lower-income Malaysians, but more than half are already doing it. Planning ahead, even with small amounts, helps people make better choices as their income grows.

Use digital tools wisely. Gen Z has shown how apps and automatic savings tools can simplify money management. These same tools, from savings trackers to investment platforms, can help anyone stay on top of their goals and build healthy habits.

A Changing Financial Landscape

Our RMFLS 2025 findings show that personal finance in Malaysia is becoming more practical, digital, and intentional. Gen Z’s growing confidence and the progress among lower-income Malaysians highlight that financial literacy efforts are working.

Big challenges remain. Wages, inflation, and affordability still weigh heavily on many Malaysians. But financial fitness is not built overnight; it develops through awareness and habit. Gen Z is smarter than the mainstream media will lead you to think.

Compare Your Financial Habits

Use our Money Meter to compare your savings, spending, and planning habits against other Malaysians based on RMFLS 2025 data.

For more insights on saving, debt management, and retirement planning, download the full RMFLS 2025 Survey Report.

Follow the RinggitPlus blog for practical financial advice and updates throughout the year, and join our WhatsApp Channel for quick, actionable money tips straight to your phone.

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