Hi Mr. Tan,
I have your book "Practical Guide on Financial Planning". I find the stories and experiences of other people to be most beneficial. Because of my past experience e.g. Minibond, insurance, capital gurranteed products, I am able to appreciate your opinions and suggestions.
If I were an undergrad or secondary student, I would not be interested to read. This is a problem as financial education should not be learned from trial and error of a new worker. It should be taught in schools before they start drawing their first cheque.
Banks and FIs will continue to attract, promote, market products based on margin, profit or commission. The new workers continue to be bombard with the theme "credit is good for you" while "live within your means" is ignored by most people.
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I find that many undergraduates are also interested in financial planning. When I talk to them, they also find my views to be useful. They realised the importance of knowing what are good products to buy and bad products to avoid. I intend to hold many talks for young people so that they can benefit from my suggestions as well.
It is a pity why there is not enough effort at national level to provide financial education to the young. Last year, a talk was held in my girls' secondary school and a book titled "Financial Literacy for schools" written by Christian TT Chua was given to them. They told me it was boring and no clue what is it all about. The book is collecting dust now.
ReplyDeleteI can see that at this age, money management, habit to save, value of money is very dependent on their parents. If you are poor, your kids' will treasure & understand the value of money. If you are middle class and provide your kids too much pocket money, the price to pay will be money mismanagement when they draw their first cheque.
More should be done to make our students appreciate, understand and handle their hard earn money properly. How many minibond, sunshine empires, land bank, wine investments before the present government wakes up? Or such products are part of their GDP growth thus cannot do anything that affect it's sales.
I personally feel that a lot of things are becoming expensive over these years. For example, my first Giordano jeans was about $30, now their jeans are about $60 and they often sell shorts at about $40. I also observe the spike of Levi's jeans from about $100 to about $150. I think about 5-10 years ago, $200 jeans were almost unheard off, but now I find them in Vivocity. Then hawker food has been increasing in price in increments of 50 cents. Meanwhile, median salary hasn't doubled. Since inflation is somewhat high, yet interest rates are rock bottom, savers are hit hard as money is only devalued when stored in the bank. This pushes the younger people into two directions: (a) the more optimistic ones going into business and/or investments, and (b) the more pessimistic ones becoming spendthrifts. I would say, it is only natural, just not a good thing in my opinion.
ReplyDeleteNow Productivity is needed in exchange for reducing number of foreign workers. Productivity is also the responsibility of workers and companies.
ReplyDeleteSame formula. Pass on the blame but draw the $millions from tax payers.
Financial Educaton? It is the responsibility of individual and not the govt or regulator.
Fraud products like land bank, minibond, wine, ponzi etc, MAS not responsible as they cannot micro manage. Investors must open their eyes before signing on the dotted lines.
High Credit card debt? Not the responsibility of MAS as one has to live within one's means. Any problem, go to non-profit organizatons for help while banks' outsource telemarketeers to everyone and anyone for free credit cards delivery to door step.
Gambling Addicts? Not Govt problem as they only build Casinos to boost GDP. Govt cannot micro manage as individual has to exercise care before going to Casino. If one need help, go to non-profit organization. If gambling breakup family, it is not Govt fault as it has done its best by imposing a $100 entry fee for Singaporeans and PR.
Low birth rate? Not Govt fault. It is happening everywhere e.g. Korea, Japan. If one draws $millions and deliver a result similar or worst than other countries then a change is needed e.g. resign or fire the minister in charge or be paid the same level as other countries.