Focus Malaysia: Pushing for more financial literacy (Part 2)

The second part of this three-part article series sees Kimberly focusing mainly on the Buy Now Pay Later (BNPL) service.

She talks about her experience as a financial planner in dealing with university students and young working adults and finds that they tend to shy away from credit cards as they have been raised on the notion that credit cards are bad if they are unable to manage their finances well.

However, Kimberly points out that the BNPL service has emerged in the market fairly recently to essentially replace the function of credit cards. As this service allows the public to enjoy now and pay back later, it can potentially cause them to live beyond their means and result in less spending money in the coming months when they will have to pay back the amount used earlier. With how easy it is to use the BNPL service, the public could end up overspending without realising which could then result in debt accumulation.

Kimberly lists a few tips for using BNPL and situations in which the use of the service is not recommended. It is important to note that credit cards and services such as BNPL can become a serious issue and damage personal finances if not managed properly.

Kimberly summarises the article by stating the importance of financial literacy in helping the public make informed decisions and steer clear of bad financial habits.

This article can be found online here.