The question was raised at the seminar on financial independence for students "Financial freedom for Generation Z: From surviving to living fully" on October 13. The program was organized by the Ho Chi Minh City Vietnam Student Association in coordination with the Ho Chi Minh City National University Youth Union Executive Committee at the University of Economics and Law.

"Plan" to improve financial health

According to the speakers, the main reason why Gen Z has difficulty managing finances is because they do not plan and prioritize their spending.

We can refer to the 50-30-20 rule. That is 50% for essential needs, 30% for desires, 20% for savings. The most important thing when making a budget is to know how to arrange spending according to priority.

Dr. Ngo Ngoc Quang (Ho Chi Minh City Banking University) - member of the advisory board of the Vietnam Personal Financial Consulting Association - proposed a "plan" to improve financial health.

Survival is the first and most important step when starting to manage personal finances. Building a suitable budget, setting up smart spending, increasing income, and reducing expenses are the things to do in this step.

Phase 2 of building a solid financial foundation is called being able to survive. That is saving, accumulating, setting up an emergency fund, building a credit score.

With living enough in stage 3, it is necessary to make long-term plans and learn how to invest to increase assets. Finally, living fully, the highest stage in personal financial management because it ensures personal financial needs, focuses on optimizing assets and creating sustainable prosperity.

"Personal financial management is not only important but also a mandatory skill that helps students identify responsible thinking and financial planning, helps control spending, and is the key to achieving stability and success in the future," Dr. Quang analyzed.

Become an entrepreneur or professional

Mr. Nguyen Tuan Quynh - Chairman of the Board of Directors of Saigon Books Culture Joint Stock Company - said that the three things needed to be financially independent include increasing revenue, controlling costs well, and investing effectively.

Young people need to work hard professionally and exceed expectations if they want to advance and achieve financial goals.

"To achieve financial freedom, you must have a roadmap to get rich, own a business or become a good expert in your field. To become a good professional, you need passion, a good mentor and hard work," said Mr. Quynh.

Mr. Dang Vien Khang - CEO and founder of Mon Amie Group - commented that students who want to start a business often face difficulties.

From his own experience, he said he started a business but lacked financial knowledge, had no clear plan, and did not know how to manage cash flow or control spending.

Besides, there is no ability to mobilize capital, cannot distinguish between needs and wants, and borrow money to start a business.

"I can say that I had to work four times harder than others and learn from many places to be able to pay off the debt after a few months and open more branches," Mr. Khang shared.