Hong Kong's Gen Zers saving $6,000 a month

Staff reporter

Hong Kong's Generation Z aged from 18 to 27 has a monthly savings amount of HK$6,014, with more than 70 percent considering traveling as one of their key work motivations, a survey conducted by the Hongkong and Shanghai Banking Corporation shows.

This age group saves 28 percent of their income monthly, the highest across all generations surveyed, yet spends nearly 10 percent more on entertainment than other groups.

The respondents averaged three trips in the past year, spending around HK$35,000, or about 13 percent of their income.

Aside from travel, the work motivation for Gen Zers also comes from buying a home and starting a family, cited by 39 percent and 34 percent of respondents, respectively.

However, 60 percent of participants view homeownership as unattainable and see work as a way to fund personal enjoyment, including travel.

Sixty-one percent use digital tools to manage their daily expenses, believing it helps them develop good savings habits.

Also, Gen Zers start investing at an average age of 20, eight years earlier than other generations. They allocate nearly 20 percent of their income to investments, primarily in Hong Kong dollar fixed deposits, Hong Kong stocks, and US stocks.

Eighteen percent have three or more types of investments in their portfolios. One in five investors follows investment advice from influencers or friends. While among those who haven't started investing, the biggest barrier cited is a lack of understanding of investment products.

Meanwhile, the research found that the demographic is relatively passive when it comes to managing personal health risks. Only one in four individuals has purchased health insurance for themselves, while 35 percent have insured their pets.

Compared to their peers, the main work motivation for Gen Zers in the Greater Bay Area is the desire for homeownership, with 61 percent wanting to buy property, while 48 percent having travel as their goal.

They save up to 2,750 yuan (HK$2,998) each month, accounting for about 29 percent of their income.