Young professionals are rethinking their financial habits because of the coronavirus crisis – The Straits Times
Instead of "Grab-bing everywhere" like he used to, freelance emcee Derrick Yip now wakes up earlier to walk to the MRT station, just one of the many saving habits he has picked up since his gigs dried up in February.
"If I walk, at least I can get the $5 voucher from the (National) Steps Challenge," the 30-year-old quips, referring to the initiative to get Singaporeans to become more physically active.
While he has managed to stay afloat, starting work as a safe distancing ambassador in late April, the past few months have made him realise one thing: "Every dollar counts."
Like Mr Yip, many young adults are rethinking their financial habits amid the coronavirus pandemic, which is also the first major economic crisis they are experiencing.
About half of the 1,000 working adults between the ages of 21 and 65 who responded to a survey by OCBC Bank last month said they suffered wage cuts, were prescribed no-pay leave or had their commission reduced.
As for emergency savings, only about a third said they had enough to last them beyond six months.
Among those in their 20s, 38 per cent said they were saving more than usual, while 30 per cent intended to increase their investments.
Both percentages were slightly lower at 28 per cent for those in their 30s.
Perhaps most strikingly, more than 60 per cent of respondents in their 20s and 30s said they have been taking up more online courses.
In comparison, only 50 per cent of those between the ages of 40 and 54, and 31 per cent of those aged above 54, said they were doing so.
Mr Loh Yong Cheng, 34, a senior client adviser at wealth advisory firm Providend, says: "Young adults (aged below or around 35), in particular, may have to be more prudent with their spending and build more financial buffer in case their parents' livelihoods are affected, as seniors tend to bear the brunt of a poor economy."
He adds: "For those in their 30s, this is also the usual phase of planning to get married or have kids, and is most likely the first time they are spending such a significant amount of money. It is paramount to have a plan and enough financial buffer for the economic uncertainty ahead."
Mr Yip, who plans to get married in June next year and pay for Housing Board flat renovations shortly after, is now saving "as much as (he) can".
He spends only about $450 a month and has cut out whatever is a "luxury", from takeaway food to store-bought coffee.
When he starts emceeing again, he intends to save about half of his income, up from the quarter he set aside previously.
"Although I had about six months of emergency funds in February, panic started to set in when all I saw on my account was a minus, minus, minus," he says. "Saving money is not just for a rainy day; it is a way of planning out my life."
Student-care teacher Saravanan Kumaran, 27, also tells The Sunday Times the circuit breaker period has helped him to cultivate stricter saving habits.
Student-care teacher Saravanan Kumaran said the circuit breaker period has helped him cultivate stricter saving habits. PHOTO: COURTESY OF SARAVANAN KUMARAN
Besides cutting down on Grab rides, he makes his own meals, instead of ordering takeaway food, which he used to do whenever his mother did not cook.
Mr Saravanan was called to work less during the circuit breaker period and lost about a month's pay, but managed to reduce his expenditure by about 40 per cent at the same time.
He says: "I am glad to see these habits carry forward after the circuit breaker as well."
Besides spending less money, young adults whose jobs took a hit are also seeking other sources of income.
For example, when Ms Wajihah Wahid, 28, finished her five-year contract as an air stewardess in April, she applied to be a nurse at Singapore General Hospital, where she had first started working in 2012.
While waiting doe a response from the hospital, she and her husband, a traffic police officer, are relying on his salary.
"We decided to buy only what we need, and not what we want, till I get a job," she says. "Most of our expenditure is on groceries, so we didn't buy new clothes even though Hari Raya just passed, and made other sacrifices like that."
Ms Wajihah Wahid (right) and her childhood friend Farah Azureen set up home bakery business Melted Batter in May. PHOTO: COURTESY OF WAJIHAH WAHID
Because she started baking more during the circuit breaker period, she and a childhood friend decided to set up Melted Batter, which sells baked goods like burnt cheesecake, cinnamon rolls and tiramisu.
"It is home-based, so there is less risk, and we buy ingredients only after we take orders, so there is no wastage," she says.
Her earnings are only 20 to 30 per cent of her previous salary, but Ms Wajihah hopes they can grow the business into "something big" eventually.
In any case, she and her husband have also committed to set aside 20 to 30 per cent of their total income in the future.
"Many of my peers thought money would always be there and that we wouldn't lose our jobs so easily, but after Covid-19, we are all talking about the importance of saving up," she says.
While their incomes have remained stable, other young adults like channel sales engineer Chong Wen Han have taken the time to reflect on their spending patterns.
During the circuit breaker period, Mr Chong says he was able to save about three times his usual amountas he realised he had a lot of "unnecessary expenditure", such as drinking and dining out.
"This got me thinking about how careless I have been with my money," says the 30-year-old, who was prompted to sign up for an investment plan. His usual commitments include his parents' expenses and car and housing loans.
He adds: "For one thing, it's better than money in the bank. Second, with a monthly commitment, I hope to continue this habit once everything is back to normal."
DBS Bank's head of financial planning literacy, Ms Lorna Tan, says the market downturn has motivated some young adults to explore investment options as they are keen to "jump on the bandwagon and pick up some bargains".
One of them is financial consultant Ho Shi Lei, who is seeing more investment opportunities.
The 24-year-old says: "Investment tools are generally undervalued now, but of course, (I need to proceed) with caution and proper planning."
It appears that the pandemic and its attendant uncertainties have sobered many young working professionals. Many have begun thinking about long-term financial planning.
Senior marketing executive Chua Yi Bei, 27, thinks her generation "is in the exploration stage of finding an effective financial habit to follow".
Ms Chua Yi Bei has bought savings plans catered for retirement.PHOTO: COURTESY OF CHUA YI BEI
They have chalked up some savings from having worked for a couple of years.
"We are exploring new ways of saving money, be it through investments or developing new habits like keeping track of our savings daily."
Claims team manager Kiki Au, 30, intends to invest more of her savings within the next year or two.
Ms Chua, meanwhile, has bought savings plans catered for retirement.
"Everyone has different habits. It's about reading up and experimenting with different kinds of financial habits. Find one that suits you the best and stick to it."
Track your expenses and budget
Knowledge is power and it is no different when it comes to your savings. Mr Laurent Bertrand, co-founder and chief executive of fintech start-up BetterTradeOff, says one must understand where one's money is going.
That means setting up a realistic budget and being disciplined in saving, including immediately setting aside 10 to 20 per cent of one's salary, and paying credit card bills in full every month.
Mr Loh Yong Cheng, senior client adviser at wealth advisory firm Providend, says: "Think about your values. From there, prioritise your spending. Know what you want your money to eventually do for you and make sure it's directed that way."
Save money for hard times
It never rains, but it pours, and in such times, one must have at least three to six months of emergency cash. Ms Lorna Tan, head of financial planning literacy at DBS Bank, says: "Develop emergency funds to last at least six months of your expenses. Your expenses should include insurance premiums and income tax - these two items are often missed out as they are annual payments."
Think long term and invest
Invest in your future - your future self will thank you for that.
To help users plan for their financial future, BetterTradeOff has created a free online platform, Up, where they can build a customised financial plan by simulating various scenarios such as buying a new home or planning a child's education.
It then projects the outcome of these decisions in relation to one's living expenses, household income and financial assets like investments.
Mr Bertrand says: "Always think long term. It often surprises people how a small amount of savings now can add up to a lot later, especially if that money is invested. Few people appreciate the compounding effect of investing on an ongoing basis. Even if it's a minimal amount, the returns are significant. This holds even more true when you're young and have time on your side."
Invest wisely
When it comes to your money, practise caution. Ms Tan says: "Do your due diligence and understand products before investing. Empower yourself with financial knowledge to make informed decisions."
She adds that timing the market can be challenging for most retail investors. "Consider adopting an approach of making regular investments in the same investment/portfolio to lower your average investment cost over time."
Shield yourself - get insurance
Finally, one needs to stay protected in a world with increasing entropy. Ms Tan says: "Review your insurance needs and ensure you have adequate insurance protection against premature death, medical conditions or disability."
Read more here:
Young professionals are rethinking their financial habits because of the coronavirus crisis - The Straits Times
- Enough about Gen Z. We need to rethink Boomer marketing - Think with Google - July 22nd, 2025 [July 22nd, 2025]
- HSIM Becomes Indias First Institute to Teach 50+ Real-World AI Tools in One Digital Marketing Course - Tribune India - July 18th, 2025 [July 18th, 2025]
- 6 Top Advertising Trends to Watch (2025 & 2026) - Exploding Topics - July 16th, 2025 [July 16th, 2025]
- AdCellerant Announces UK Launch Event with Experts from Google, Yext, and More on Tuesday, July 15 | London, UK - PR Newswire - July 12th, 2025 [July 12th, 2025]
- Everso Media awarded the title of Best Reddit Marketing Agency for 2025 - MarTech Cube - July 10th, 2025 [July 10th, 2025]
- Entertainment Business & Digital Marketing Grad Runs His Own Agency - Full Sail University - July 10th, 2025 [July 10th, 2025]
- The nexus between entrepreneurial and market orientation on digital marketing capabilities and marketing performance of SMEs in emerging markets -... - July 8th, 2025 [July 8th, 2025]
- Russian ISPs throttle Cloudflare traffic to 16KB - PPC Land - July 2nd, 2025 [July 2nd, 2025]
- Companies with largest share of digital advertising revenue worldwide in 2023 - Statista - June 28th, 2025 [June 28th, 2025]
- KONETiQ and National Golf Foundation Partner to Transform Golf Marketing - Business Wire - June 28th, 2025 [June 28th, 2025]
- Indias wired and wireless home internet market to touch $16.5 billion in 5 years: Report - The Economic Times - June 28th, 2025 [June 28th, 2025]
- LocaliQ Launches Voice AI Agent to Transform Prospect Conversations - Business Wire - June 24th, 2025 [June 24th, 2025]
- Beyond ChatGPT: What AI agents really do (and why it matters for customer experience) - MarTech - June 22nd, 2025 [June 22nd, 2025]
- B2B marketers ramp up investment in targeted strategies and AI - Digital Commerce 360 - June 20th, 2025 [June 20th, 2025]
- Digital marketing in 2025: Trends and strategies - AZ Big Media - June 7th, 2025 [June 7th, 2025]
- When Will Starlink Have LEO Competition in the Home Internet Market? - Telecompetitor - June 7th, 2025 [June 7th, 2025]
- Space-Based Broadband Internet Market Size by Type, Application, and Regional Outlook - openPR.com - June 4th, 2025 [June 4th, 2025]
- Just call it good marketing: Dan Gandor on why omnichannel matters - Pharmaphorum - June 1st, 2025 [June 1st, 2025]
- 23 Proven Ways To Make Money Online in 2025 - Shopify - May 30th, 2025 [May 30th, 2025]
- AI Marketing Infrastructure That Converts: Building the Digital Foundation for AI Success - MITechNews - May 28th, 2025 [May 28th, 2025]
- Website performance budgets are key to a more sustainable internet - Marketing Tech News - May 19th, 2025 [May 19th, 2025]
- Kellie Anderson of TechWyse Shares Insights on Building Brand Community at HeyOrca Summit 2025 - openPR.com - May 19th, 2025 [May 19th, 2025]
- Global internet advertising revenue from 2018 to 2027 - Statista - May 19th, 2025 [May 19th, 2025]
- What is Internet Market Capital (ICM)? Why Is Everyone Talking About Them? - NFTevening - May 19th, 2025 [May 19th, 2025]
- Online advertising revenue in the U.S. 2000-2024 - Statista - May 19th, 2025 [May 19th, 2025]
- Internet of Medical Things Market Insights: Key Players, - openPR.com - May 19th, 2025 [May 19th, 2025]
- Internet Advertising Market Size and Outlook by Application, Type, and Geographic Scope - openPR.com - May 17th, 2025 [May 17th, 2025]
- Digital advertising spending in the U.S. 2029 - Statista - May 17th, 2025 [May 17th, 2025]
- Exploring the Explosive Growth of the Internet of Behaviors (IoB) Market - openPR.com - May 14th, 2025 [May 14th, 2025]
- Internet Marketing Company Marketing 1on1 Has Moved to a New Domain, 1on1.marketing - openPR.com - May 14th, 2025 [May 14th, 2025]
- Digital Marketing Grad is Vice President of SEO at Synchrony Bank - Full Sail University - May 8th, 2025 [May 8th, 2025]
- Digital Marketing Market Size To Worth USD 1,189.5 Billion by 2033 | CAGR of 11.22% - openPR.com - May 8th, 2025 [May 8th, 2025]
- Internet Advertising Revenue Report: Full Year 2024 - IAB - April 23rd, 2025 [April 23rd, 2025]
- Google Broke the Law to Keep Its Advertising Monopoly, a Judge Rules - The New York Times - April 23rd, 2025 [April 23rd, 2025]
- What is SEO Marketing? Definition, Importance, and Types (2025) - Shopify - April 23rd, 2025 [April 23rd, 2025]
- Marketing genius? Kanye West reveals disturbing childhood experience with cousin, leaves Internet in shock - Mint - April 23rd, 2025 [April 23rd, 2025]
- The Comprehensive Guide to Digital Marketing: Strategies, Trends, and Future Insights - openPR.com - April 23rd, 2025 [April 23rd, 2025]
- AI-Driven Lead Generation: How to Get Found, Build Trust, and Grow in 2025 - MITechNews - April 23rd, 2025 [April 23rd, 2025]
- Types of Digital Marketing: The Marketers Toolkit for 2025 - Simplilearn.com - April 16th, 2025 [April 16th, 2025]
- 8 Digital Marketing Trends That Will Dominate! - Simplilearn.com - April 16th, 2025 [April 16th, 2025]
- 12 Types of SEO | Top SEO Techniques to Increase Traffic in 2025 - Simplilearn.com - April 16th, 2025 [April 16th, 2025]
- AppsFlyer and NAVER Announce Audience Integration to Enhance Digital Marketing Capabilities - Business Wire - April 14th, 2025 [April 14th, 2025]
- Is Digital Marketing a Good Career: Unveiling the Truth - Simplilearn.com - April 14th, 2025 [April 14th, 2025]
- Hi! It's Duo: The Marketing Strategy Behind the Internet's Favorite Green Menace - Adweek - April 14th, 2025 [April 14th, 2025]
- Top 15 Creative Marketing Ideas To Grow Your Business - Simplilearn.com - April 14th, 2025 [April 14th, 2025]
- Best Marketing Certifications for Your Marketing Career - Business.com - April 5th, 2025 [April 5th, 2025]
- Jio led mobile internet market in key performance metrics in H2-2024: Ookla - ANI News - April 3rd, 2025 [April 3rd, 2025]
- Audio Visual Over Internet Protocol Market Size and Growth Forecast by Application, Type, and Region - openPR.com - April 1st, 2025 [April 1st, 2025]
- Best Travel Website of 2025 to be Named by Web Marketing Association in 29th Annual WebAward Competition - PR.com - March 20th, 2025 [March 20th, 2025]
- Navigating the Future: Healthcare Digital Marketing - openPR - March 20th, 2025 [March 20th, 2025]
- ELC Partners with Adobe to Scale the Production of Digital Marketing with Firefly Generative AI - Estee Lauder Companies - March 15th, 2025 [March 15th, 2025]
- Transitioning from Traditional to Digital: 5 Legacy Brands Crushing It - Spiceworks News and Insights - March 15th, 2025 [March 15th, 2025]
- Future of the Digital Marketing Market: Insights, Current Trends & Forecasts - openPR - March 15th, 2025 [March 15th, 2025]
- Market capitalization of the largest internet companies worldwide as of October 2024 - Statista - March 9th, 2025 [March 9th, 2025]
- Why outdated data is costing dealers more than they realize April Simmons | Horne Auto Group - CBT Automotive News - March 7th, 2025 [March 7th, 2025]
- Next Wave of Gaming Advertising Innovation Takes Center Stage at 2025 IAB PlayFronts - IAB - March 5th, 2025 [March 5th, 2025]
- Digital marketing needs a reset heres where to start - Retail Week - March 5th, 2025 [March 5th, 2025]
- How genius marketing campaign sent Oasis fans into a frenzy and lit up the internet - Prolific North - March 5th, 2025 [March 5th, 2025]
- Top 8 CEOs of Digital Marketing Agencies in Houston - Influencer Marketing Hub - March 3rd, 2025 [March 3rd, 2025]
- Trends Shaping the Transactional & Marketing E-Mails - GlobeNewswire - February 27th, 2025 [February 27th, 2025]
- The Remarkable Story of Aleksandr Alimov: How the Creator of Multilanding and Hypersegmentation Changed the Game in Marketing - Tech Times - February 27th, 2025 [February 27th, 2025]
- What is Programmatic advertising: Career and beyond - India Today - February 27th, 2025 [February 27th, 2025]
- How blockchain is changing digital advertising and consumer trust in the UK - London Daily News - February 18th, 2025 [February 18th, 2025]
- SEO Spring Training 2025 Conference Returns to Chandler, AZ, May 1-4 2025 - StreetInsider.com - February 14th, 2025 [February 14th, 2025]
- Internet Ad Spending Market Competitive Research And Precise Outlook 2025 To 2033 | Facebook, Google, LinkedIn - openPR - February 12th, 2025 [February 12th, 2025]
- Internet of Thing Container Solution Market Survey Report 2025 - openPR - February 7th, 2025 [February 7th, 2025]
- Kenyas Internet Advertising Market Projected to Be the Fastest Growing in the World - Kenyan Wallstreet - February 3rd, 2025 [February 3rd, 2025]
- VCI Global Moves to Acquire Award-Winning Digital Marketing Firm in Singapore - GlobeNewswire - January 26th, 2025 [January 26th, 2025]
- Display & Video 360: the demand side platform for a connected internet - The Keyword - January 26th, 2025 [January 26th, 2025]
- I had 4 startups fail before I started making 6 figures a month from my digital marketing company. Teaching the lessons of my failures led to my... - January 26th, 2025 [January 26th, 2025]
- Internet of Medical Things Market to Witness Massive Growth (2024-2031): Abbott, ResMed, BIOTRONIK. - openPR - January 26th, 2025 [January 26th, 2025]
- Internet Micro Drama Market To Witness the Highest Growth - openPR - January 26th, 2025 [January 26th, 2025]
- IAB Report Highlights Optimism in Digital Advertising with Double-Digit Growth for Retail Media, CTV, and Social - IAB - January 19th, 2025 [January 19th, 2025]
- AT&T bows out of huge home internet market area as new law takes effect - PhoneArena - January 19th, 2025 [January 19th, 2025]
- Market share of the leading broadband internet providers in Germany from 2011 to 2023 - Statista - January 19th, 2025 [January 19th, 2025]
- Amazon aims to branch into UK internet market with satellite broadband plan - The Guardian - January 9th, 2025 [January 9th, 2025]
- Best Omnichannel Marketing Platforms and Why Your Business Needs One - Influencer Marketing Hub - January 1st, 2025 [January 1st, 2025]
- Mozilla reclaims the Internet in new rebrand - Marketing Interactive - December 10th, 2024 [December 10th, 2024]
- Insights into the Digital Brand Registration Platform Market - openPR - December 10th, 2024 [December 10th, 2024]
- IPG sells Huge and buys tech: has digital been trumped by data? - More About Advertising - December 5th, 2024 [December 5th, 2024]