Gold prices plunged nearly three dirhams per gram in the UAE on Thursday morning after the US Federal Reserve paused rates hikes.

According to Dubai Jewellery Group data, the 24K was trading at Dh234.25 at the opening of the markets as compared to last night’s close of Dh237.0 per gram, down Dh2.75 per gram. Similarly, 22K, 21K and 18K also opened lower at Dh216.75, Dh209.75 and Dh180.0 per gram respectively.

Spot gold was trading in the negative territory at $1,931.98 per ounce at 9.18 am UAE time.

The Fed refrained from raising interest rates at the end of the meeting on Wednesday. However, analysts expect further rate hikes later this year, rising from 5.0-5.25 to a range of 5.50-5.75 per cent by the end of 2023.

The drop in prices will boost demand for the precious metal and its jewellery in the UAE.

The Dubai-based financial services provider Century Financial said a break below $1,930 can instil corrections towards $1,912 followed by $1,890.

Bas Kooijman, CEO and Asset Manager of DHF Capital, said the UAE’s precious metals market, including gold, jewellery, gold bars and silver, was valued at Dh8.52 billion in 2020 and it is expected to reach a value of Dh13.21 billion by the end of the decade at a compound annual growth rate of 3.66 per cent through 2030.

Sources: [Khaleej Times](https://www.khaleejtimes.com/business/markets/time-to-buy-uae-gold-prices-plunge-nearly-dh3-per-gram?amp=1)
[Zawya](https://www.zawya.com/en/markets/commodities/time-to-buy-uae-gold-prices-plunge-nearly-082-per-gram-a7vifgct)
[UAE Times](https://uaetimes.ae/time-to-buygold-prices-plunge-nearly-dh3-per-gram-in-uae-news/)

As inflation rises, a global recession looms, and chatter of cryptocurrencies replacing fiat money persists, the importance of financial literacy has never been more evident. Some argue that personal finance not being taught in schools is a general failure of the education system to identify the most relevant skills students should possess.

Others claim it is a parent’s responsibility to ensure their children are financially literate. Irrespective of which of these sides is correct, the fact remains that as adults, we are all responsible for managing our finances - whether paying off mortgages or student debts, or building and diversifying our wealth portfolios to prepare for retirement.

In the UAE, this is an afterthought for close to half of the country’s population; 45 per cent of residents say they have not yet started saving for retirement, and 40 per cent will only start saving 10 years or less before they are set to retire. For comparison's sake, approximately 75 per cent of American adults have begun saving for their ‘golden years’.

If you are not a part of the 33 per cent of adults worldwide who have sufficient financial education, here are some things you can do to change that:

## Use the 50/20/30 budgeting rule
Coined by US Senator Elizabeth Warren, the 50/20/30 rule is a budgeting tactic that entails splitting your after-tax income into three categories of spending:

- 50 per cent on needs;
- 30 per cent on wants; and
- 20 per cent on savings..

If you are a resident of the UAE, you are in an advantageous situation to maximize on saving potential as you keep everything you earn. With that said, avoid the traps of overspending and ignoring delayed gratification. Instead, follow the 50/20/30 rule to create a reasonable budget, stick to it, and realize your financial goals.

## Think of it like a burger
Allocate 50 per cent of your total earnings to cover necessities like paying down debts, buying groceries, maintaining your health, and so forth - these are the buns that hold your financial potential together. If half of your salary is not enough to cover these expenses, you can downsize by, for example, limiting your use of taxis and frequenting the metro or compromising on luxury elements of your life.

While it’s important to be responsible, so is enjoying your life. This will help you make the 50/20/30 rule a sustainable staple in your life. That’s where the 20 per cent - the lettuce, tomatoes, and other preferred condiments - fit in. You can use this percentage of your savings for ‘luxuries’ like Netflix subscriptions and Starbucks coffee orders, as well as more miscellaneous expenses like going out with friends or buying gifts for family members.

Finally, the meat. This is the best 30 per cent as it makes your burger complete. It is crucial, and the reason that you are considering following this blueprint in the first place. In the short-term, 30 per cent of your savings may not seem like much, but in the long run, it makes a huge difference.

Use this allocation to create an emergency fund - something you should aim to have at least three months of savings for - to invest in stocks, and of course, to prepare for retirement.

## Harness technology and youth
Almost 50 per cent of the UAE is aged between 15-35 years and this reinforces the importance of millennials and Gen Z in propelling the country’s growth[1].

Younger generations are more in tune with digital platforms and advancements in technology, and there are a plethora of online resources that are widely available for them to learn and improve. The next step is applying what is learned, as theory is nothing without practice.

For instance, if you learn about commodity trading from YouTube channels, make sure you try your hand at actually doing it on a reputable platform. If you still don’t feel comfortable, at least you are now better educated on the subject and you can reach out to a wealth management platform to help you build your wealth while having a better understanding of what’s going on every step of the way.

##Plant your seeds now
According to a 2019 financial literacy survey, 43 per cent of UAE respondents between 16-24 felt unready to manage their own money, and 53 per cent said schools didn’t prepare them enough to manage their finances. The country has since taken steps to improve this, by rolling out initiatives like Ghaya in November 2020, to support UAE Nationals and their subsequent contributions to economic growth.

However, nearly 90 per cent of the UAE’s population is made up of expatriates and proactive action is still needed to enhance the region’s current financial literacy rate of 30.7 per cent. This will help the UAE catch the likes of Denmark, Norway, Sweden, Canada, the United Kingdom, Germany, Australia, and Finland, all of which boast financial literacy rates ranging between 63-71 per cent.

As the Chinese proverb goes: ‘The best time to plant a tree was 20 years ago. The second best time is today…’

As published by [GulfNews](https://gulfnews.com/your-money/expert-columns/uae-expats-could-do-with-a-502030-budgeting-model-1.1674042451103)

small_Stock-Financial-Literacy_185c4b403e2_large.jpg

thumbnail_Stock-Financial-Literacy_185c4b403e2_large.jpg

Stock-Financial-Literacy_185c4b403e2_large.jpg

UAE expats could do with a 50/20/30 budgeting model

● The UAE is the fifth most stock-obsessed country; no other Gulf or Arab nation made the top five  
● 53% of UAE employees expect a raise and 82% plan to use annual bonuses to invest in their future  
● Financial advisors influence 13% of UAE residents’ investing decisions  

Dubai, UAE - 3 April 2023: Salaries in the UAE are expected to rise by an average of between 2% and 5% this year and 53% of the country’s workforce is expecting a raise. According to Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., intelligently investing these extra earnings will prove useful not only amid the looming world recession but even well beyond it.  

Global data shows that investors are expecting to retire three years earlier than non-investors, and the actions of UAE residents demonstrate a solid understanding of this; at the onset of 2023, the country was ranked as the fifth most “stock-obsessed” in the world. Singapore, India, Canada, and the United States were the only other countries to rank higher, while no other Middle Eastern countries were able to crack the top ten. The study revealed that the UAE has the fourth-highest search levels for the term ‘swing trading’ and is the fifth country most interested in ‘day trading’.  

A recent survey also found that nearly 50% of UAE residents received bonuses last year, with 31% of these respondents raking in upwards of AED 20,000 and 5% earning over AED 50,000. At 82%, an overwhelming majority of these individuals plan to use their annual bonus as means of investing in their future. Property investment, retirement savings, debt payments, and child education were among the key priorities at 24%, 17.6%, 15% and 15%, respectively.  

Bas commented: “Today, there are more investment opportunities than ever before. The rise of the digital economy has made this possible with options ranging from virtual assets to forex. At the same time, traditional means of investing in the form of real estate, gold, stocks, and more are still viable avenues to consider. However, studies have found that nearly 40% of women and approximately 20% of men around the world aren’t investing. This can be attributed to a lack of understanding of where to start, but with the current state of the world, individuals must prioritize financial planning to build a future-proof foundation.”  

As of 2018, 57% of global investors perceived traditional financial advisors as ‘very valuable’. Today, recommendations by a financial advisor influence 13% of UAE residents’ investing decisions, but with younger generations becoming more financially savvy, this is poised to increase in the coming years. Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term. Bas is making wealth creation more affordable for all via his securitisation firm, DHF Capital; with his guidance, the company has provided investors with an average yearly return on investment (ROI) of more than 20%, while investors who have worked with him since the company’s inception have witnessed a 114% ROI, more than doubling their initial investment. 

Source: https://menafn.com/1105932438/UAE-Residents-Financial-Knowledge-is-Expanding 
https://menafn.com/arabic/1105932437/باس-كويمان-يؤكد-تزايد-الوعي-المالي-لدى-سكان-دولة-الإمارات 
https://blog.uaetoday.com/uae-residents-financial-knowledge-is-expanding/ 
https://mid-east.info/uae-residents-financial-knowledge-is-expanding/ 
https://www.albayan.ae/economy/uae/2023-04-04-1.4642549 
https://www.mubasher.info/news/4101946/الإمارات-الخامسة-عالميا-في-الإقبال-على-الاستثمار-بالأسهم/?currentUserCountryCode=PH 
https://www.klyoum.com/uae-news/ar/41-الإمارات-الخامسة-عالميا-في-الإقبال-على-الاستثمار-بالأسهم.php 
https://ramallah.news/post/221011/الإمارات-الخامسة-عالميا-في-إقبال-السكان-على-الاستثمار-في-الأسهم 
https://www.nabdn.com/post/15981452/الإمارات-الخامسة-عالميا-في-إقبال-السكان-على-الاستثمار-في-الأ 
https://pressbee.news/details/6068851/الإمارات-الخامسة-عالميا-في-إقبال-السكان-على-الاستثمار-في-الأ 
https://www.alittihad.ae/news/الاقتصادي/4366234/الإمارات-الخامسة-عالميا-في-إقبال-السكان-على-الاستثمار-بالأسه 
http://uaenewsapp.com/1/Article/2069/231659280#.ZGTItC8Rrw5 
https://www.klyoum.com/uae-news/ar/96-الإمارات-الخامسة-عالميا-في-إقبال-السكان-على-الاستثمار-بالأسهم.php 
