Since the start of the new year, how are you keeping up with your new year’s resolutions? In case you are still trying to figure out how to plan your finances or trying to beef up your financial fitness, we are here to help.
Young NTUC discusses with Ms Joyce Tay, a Group Sales Manager with Income Insurance Limited (Income Insurance), who has over 14 years of experience in the sector, to tap on her field knowledge and learn tips and tricks Gen Zs can leverage to be financially ready in 2024.
Know the Risks
Reflecting on the past year’s volatile financial transformation, Ms Tay says, “Singapore has seen huge digital transformation over the years. There will likely be even greater emphasis on new digital platforms or FinTech innovations that can help younger individuals to access and probably manage their finances online.”
Alongside incremental digitisation, risks are something Ms Tay cautions will increase as well. And discerning a scam calls for more effort, and greater awareness with youth consumers.
“We tend to think that the elderly would fall victim to these scams but young adults are equally susceptible to digital scams,” she added. And the best way is to deepen understanding.
Build Financial Literacy
Ms Tay advised that while technological tools offer convenience and continue to play a pivotal role in helping them manage their finances, youth should still strive to be more financially literate.
Youth being well-exposed to online information and digital sources, she offers one tip: “Youth need not succumb to peer pressure,” she says, noting the saliency of having financial knowledge before investing. And a quick way to deepen understanding is through courses, such as Young NTUC’s very own Financial LITeracy programme where expert facilitators can help youth learn the basics of financial management and build on planning skills.
“For a start, young adults can benefit from learning how to budget and invest,” she says. “Being cognisant of one’s short-term and long-term goals can offer a blueprint for Gen Zs to work on too.” Which means better planning for the future.
Planning for retirement early
Though retirement seems far away as a youth starting out on the first job, there is wisdom in planning for one’s retirement early. And according to Ms Tay, a conversation worth having early. She explained: “For a start, youth can benefit from knowing what the retirement options are in the market today. Financial wellness is more than growing numbers in your bank account; it’s about fostering a healthy relationship with money.”
Beyond learning how to budget or invest, it would also be wise for youth to know how to manage debt.
A Healthy Relationship with Money
Perhaps the first brush with debt for 20-somethings, will be in the form of student loans. And when the numbers start snowballing, it can be stressful trying to manage the rising costs of living, paying off the loan and trying to have a quality of life all from a basic starting salary.
And oftentimes, this is when youth may start leaning on an additional credit card to keep things afloat.
Ms Tay said: “Not knowing how to manage debt may impede financial progress.” She suggested that one way to manage debt better is to use a budget tracker to list down expenses and then categorise items under a ‘need’ or ‘want’ column. This can help to better monitor informed decisions on spending habits and allocate funds more efficiently as well as work towards reducing and eventually eliminating debt.
As to the best advice Ms Tay can offer, she offered this sound tip: “Tracking your transactions daily make for a good habit to nurture early. That way, you can have ownership of your money.”
Join Young NTUC’s Financial LITeracy Programmes
Effective money management goes beyond traditional financial advice. By investing in yourself, nurturing relationships, honing negotiation skills, diversifying income, practicing delayed gratification, staying informed, and safeguarding your financial identity, you equip yourself with concrete strategies for financial success. Incorporating these unconventional yet practical tips into your financial approach can pave the way for a more secure and prosperous future.
Keen to learn more budget hacks and tips? Join us and your fellow peers at our Financial LITeracy programme for the year. Join our Digi Fam or follow us on social media to keep updated on the next event.