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a penny worth your thoughts
Do you struggle to save money? JORDON ANG finds out how students can better manage their money with these simple tips.
Financial literacy is an important skill to have in order for students to know how to save money. According to the Public Service Division, understanding budgeting, investing and how to spend money sensibly are all parts of financial literacy.
PHOTO: JORDON ANG
Do you ever find yourself in a situation where you have very little money in your bank account when making a purchase?
Ms Rachel Zhuo, 18, a second-year Optometry student at Singapore Polytechnic, experiences it often. Recalling her experience, she says, “There was once [where] I wanted to buy a bottle of water… I tried paying for it using my card, but the transaction didn’t go through. To my surprise, I had 18 cents left in my bank account.”
Ka-ching! So where exactly did all the money go?
But Ms Zhuo is not the only one who struggles to save enough money. According to an OCBC survey conducted in 2020 reported by The Straits Times, approximately two-thirds of working Singaporeans said “they did not have enough savings to last them beyond six months.”
Well, it’s not too late to start saving money if you haven’t already! In a recent survey conducted by News Z among Singaporean students, nearly 83.3 per cent of the 36 respondents stated they are keen on learning how to save and manage their money better.
If you’re interested in learning too, you’ve come to the right story!
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DELAYING THE INSTANT GRATIFICATION
Athena Seng, 23, is a financial consultant who has talked to many students regarding their financial habits and has shared with them on how she can help. PHOTO: ATHENA SENG
Ms Athena Seng, 23, a financial consultant, recommends that being future-oriented is crucial by having a long-term mindset.
She says, “If you can acknowledge long-term gratification, you’ll eventually be rewarded much more, versus if you’re too rash and too impatient, it’s very difficult to plan in advance.”
The mindset of purchasing something immediately without consideration or something in trend to enjoy instant gratification does more harm than good.
Recalling her times as a student, Ms Seng says, “I almost fell into the trend of buying branded goods, then I realised after buying, I don’t really like it.”
She laughs, then adds, “It turns out that I can actually save that money and put it to better use like growing assets for myself.”
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HAVING AN END IN MIND
Having an end goal in mind before one starts to save is also very important. Ms Seng says, “Students who don’t have any particular goals that they are saving towards would mean that their motivation and discipline to save would be very fleeting.”
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She adds that the end goal does not have to be ambitious. It can be as simple as a graduation trip with your best friends.
She says, “You'll find that it's easier to save because you have a goal in mind.”
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BUDGETING AND ALLOCATING WISELY
When you receive your allowance or salary, it is also essential to know how to budget it.
The 50/30/20 budget rule is a good kick-starter for students who are just starting to save money. It recommends allocating 50 per cent of your money on needs, 30 per cent to purchases you desire and 20 per cent to savings. Ms Seng suggests that once you are more used to financial literacy, you can start figuring out your own budgeting strategy without relying solely on the rule.
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APPS THAT HELP TRACK YOUR MONEY
Different mobile applications that can help you keep track of your money. All these apps are available on both Apple App Store and the Google Play Store. PHOTO: JORDON ANG
Seedly, Wally and Monny are some mobile applications that are easily accessible to help you keep track of your money.
Ms Seng recommends these apps as a suitable way to begin tracking one's finances. She says, “Using these apps builds character and resilience, and sometimes you will start to see that you are spending money unnecessarily.”
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DON'T GO THE EASY WAY OUT
Catherine Cheah, 17, a second-year Real Estate Business student at Ngee Ann Polytechnic, advises students to limit their use of food delivery mobile apps due to convenience. She believes this is the primary reason why students struggle to save money.
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LAST ADVICE
As Ms Zhuo learns about the consequences of not saving money, she says, “At the end of the day, you need to learn to be diligent so you can start saving money yourself.”
Like Ms Zhuo, many students struggle to save money. But Ms Seng says, “There are some people who suddenly wake up one day, and they decided to change. I think it’s because they found out what's dear to them and what they want to achieve and will do whatever it takes to get there.”