DEALING with money is a skill often overlooked by most but it is becoming crucial to a generation trying to survive as the cost of living continues to rise.

Gen-Yers, usually born between 1980s and early 1990s, are commonly regarded as the “here and now” generation.

Excellentte Consultancy’s Jeremy Tan says most people believe these group of people are focused on instant gratification and having up-to-date branded gadgets and attire.

However, he adds, one should not generalise across the board, as the more financially literate members of Gen-Y know how to save and spend, and are concerned with future gratification as well as present.

With a tertiary qualification, Gen-Yers entering the job market today are told to expect a salary of RM2,500 to RM2,800, says Kevin Liew, who recently graduated with a bachelor’s degree in accounting and a diploma in advertising.

“I have some friends who settle for less just to get into the industry. It’s tough for fresh grads to get into creative agencies, it really depends on the people you know,” he adds.

“As a fresh graduate, I’d be happy with anything above RM2,500 for now. But with the imminent economic crisis, I guess I’d take anything I can get,” says Joshua Lim, who recently graduated with a mass communications degree from IACT College.

Such an entry salary leaves little for savings and investments after minusing their expenses, and many Gen-Yers agree that the bulk of their expenditure is on food and transportation such as petrol and car maintainance.

They are also likely to be affected the most when the goods and services tax (GST) comes into effect in April next year.

Tan says Gen-Y has always been hit first with the high cost of living expenses, especially if inflation goes up to about 5% after the new GST law is implemented.

“It’s not that we don’t want to save money, but we need to survive in an environment where GST and petrol prices are going up constantly while salaries remain low,” says Joseph Lam, a marketing executive who graduated in 2013.

Despite the high expenses, many Gen-Yers still try to save at least 20% to 30% of their salary or allowance, putting money aside for special occasions and emergencies.

Tan Wan Qien, who is in the banking sector after graduating last year, has 20% of her salary pre-credited into stock options and would like to invest more in stock when her salary increases. Additionally, she is saving up towards continuing her education at a masters level in the short run and property ownership in the long run.

Meanwhile, real estate negotiator and taekwondo instructor Robin Kok has a different approach.

“Savings and investments for me are actually the same thing. I don’t leave my savings in the bank as I think the interest rates are too low. I’d rather just invest them,” says Kok, who invests in commodities and foreign exchange market.

However, Tan says risk planning should take priority over investments, as Gen-Yers need to be aware of their economic worth.

Tan explains that risk planning entails making sure the lifestyles of one’s immediate family would not be disrupted too much should an investment fall through. Apart from that, one should also think about legacy planning, which involves planning for one’s retirement and wealth redistribution should anything happen.

“Some of the Gen-Yers are investment-savvy and trade in the stock market, but they need to have risk planning as well or they will need to liquidate their investments in a worst-case scenario. Withdrawal before an investment matures can incur a high penalty,” he says.

He adds that Gen-Yers need to educate themselves in financial literacy, a sentiment that international marketing executive Danesh Asokkumar echoes.

“I read the other day that quite a number of Malaysian youths are in debt, and it’s quite sad to hear that. People need to plan, save and think ahead at our age because down the road, when commitments pile up, it will be harder to save money,” says the 22-year-old.

“We are not a poor country. But we have poor command of our finances, so we need to improve on that as a community,” says events and business support executive Hazwani Hussain.