The Russia-Ukraine conflict may impact the financial stability of young individuals.

The conflict between Russia and Ukraine has caused uncertainty in global stock markets and increased concerns about personal finances, which have already been affected by the economic impact of the coronavirus pandemic.

Since the start of the pandemic, more than a third of young people aged 18-29 across 25 countries have reported experiencing financial difficulties, which is the highest percentage among all age groups, according to a survey by the Organisation for Economic Co-operation and Development, published in July.

The economic consequences of an intensifying Russia-Ukraine conflict could threaten the global financial recovery, putting young people's financial stability at risk.

Financial experts have identified the primary financial difficulties that young individuals may encounter during this crisis and have provided guidance on how to safeguard their funds.

Manage fuel costs

The Russia-Ukraine crisis has contributed to the increase in oil prices, as Western allies' sanctions on Russia have raised concerns about energy supply disruptions. On Sunday evening, Brent crude futures reached $105 a barrel, surpassing $100 on Thursday for the first time since 2014. One analyst predicts that the oil price could reach $130 a barrel.

The price of energy commodities like oil had already been increasing before the geopolitical tensions intensified, resulting in higher fuel costs. On Monday, a gallon of gasoline in the U.S. cost $3.610, an increase from the national average of $2.717 a year ago.

Sarah Coles, a personal financial analyst at U.K. investment platform Hargreaves Lansdown, advised that maintaining a car properly could reduce overall costs. This includes regular servicing, inflating tires, removing additional weight, and taking heavy loads out of the trunk.

She emphasized that driving styles significantly impact the outcome, by driving at a slower pace, using the highest suitable gear, and accelerating smoothly.

The attack on Thursday caused natural gas prices to increase, with futures up approximately 3.5% on Monday morning. It is reported that the European Union is the world's largest importer of natural gas, with Russia being the source of the majority of its gas (41%).

According to Coles, investing in housing insulation is a worthwhile investment for those who have the financial means to do so, as it can help reduce heating costs in the long run. However, if insulation is not an option, there are still steps that can be taken to minimize heating costs, such as turning the thermostat down by one degree, switching off radiators in unused rooms, being more mindful of dishwasher and washing machine usage, and installing DIY draught-proofing.

She stated that higher energy costs would likely increase the expense of every step involved in food processing and transportation.

Coles stated that the conflict could result in decreased food exports, which could subsequently increase prices. Specifically, she mentioned that Russia and Ukraine account for 29% of wheat exports, 19% of corn exports, and 80% of sunflower oil exports.

Keelvar CEO Alan Holland cautioned CNBC that Ukraine, known as the "bread basket of Europe," could face severe consequences in its food supply chain due to conflict.

According to Paul Dales, the chief U.K. economist at Capital Economics, the rise in global agricultural prices over the past nine months indicates that U.K. food price inflation may increase from 4.3% in January to approximately 6.0% in the near future.

He noted that the global agricultural prices had not significantly increased since the Russian invasion of Ukraine started.

According to Dales, grocery stores in the U.K. have been able to absorb big price increases without losing customers, which suggests that food price inflation may not soar as much as expected.

Don’t ‘switch and ditch’ stocks

Coles advised investors to focus on their long-term financial goals despite the market turbulence caused by Russia's invasion of Ukraine, as stated in an email to CNBC.

She advised against switching and ditching stocks due to daily market moves, as this can result in over-trading and capitalizing losses.

To ensure their investments are diversified, young investors should have exposure to various geographies and an appropriate asset class mix based on their age and investment horizon, according to Coles.

Becky O'Connor, the head of pensions and savings at U.K. investment platform Interactive Investor, acknowledged that concerns about slow and volatile investment growth may deter some individuals from investing their savings. However, she emphasized via email to CNBC that "they have a far better chance of making something if they can leave their money in the markets for a good few years."

Coles advised against reducing contributions into one's pension fund, even though people looking to cut costs may be tempted to do so.

Regularly contributing to your pension allows you to buy more units when markets are low, which means you'll gain more when markets recover.

Don’t rely on higher interest rates

The possibility of higher energy prices increasing inflation has led investors to adjust their expectations for Federal Reserve interest rate increases.

Elliot Hentov, the head of global macro policy research at State Street Global Advisors, stated on CNBC's "Squawk Box Europe" on Friday that he believes the U.S. hiking cycle will not be stopped, but will be slowed down, flattened, and possibly stretched out. He also mentioned that the Fed may take a little more time in raising rates.

European central banks' plans for raising interest rates may have shifted course due to the risk of stagflation, which combines a slowdown in economic growth and rising inflation, as a result of the conflict.

As per O'Connor, there is a possibility that interest rates will increase further, leading to an increase in inflation, which will have a negative impact on borrowing and living expenses in the short term.

Although interest rate increases may seem beneficial for savings, they do not directly benefit savings accounts. The interest rates on cash savings accounts are still lagging behind the rate of inflation, causing a significant loss of value in the money held in savings.

The report was contributed to by Yun Li, Cat Clifford, and Weizhen Tan of CNBC.

Amid the market turmoil caused by Russia's invasion of Ukraine, it is crucial to remain composed and make rational choices.