FINANCIAL LITERACY SHOULD START EARLIER
Ms Lee said that enquiries for her firm’s counselling services have risen 13 per cent this month, compared with December last year.
This is especially concerning as many are only seeking help when the situation becomes uncontrollable, she added.
Those in debt are getting younger as well. Ms Lee said those looking for help are largely in their 30s and 40s, while it used to be people in their 50s and 60s.
“I think (it’s) because the younger generation is encouraged to take on debt and are living on subscription models with recurring commitments,” she added.
“This encourages them to spend more, and to use credit to enjoy the lifestyle that they want. And it spirals.”
She expressed hopes that more youth can be exposed to financial literacy before they jump into credit, in order to prevent more runaway debt.
Dr Teo also said that while there are financial literacy workshops available and banks can offer guidance, people still end up learning financial management skills on the fly.
“There may be a need to start financial education earlier, especially because now we are entering really a cashless era where people from a young age do not see handling of cash directly,” she added.
“If it’s just seeing the numbers on their credit card app or maybe their bank app, it may not have the exact same impact as seeing the cash flow out from your hands directly, and that might be something that impacts how people actually view money and the outflow of money.”
