Financial literacy is important – do Singaporeans know enough about it??

The financial situation of millennials in Singapore today is very different from that of their parents.

Today, life expectancy is higher than ever. According to Channel News Asia, Singaporeans’ life expectancy is among the highest in the world with 81.4 and 85.7 respectively for men and women in 2019.

In addition, by 2040 Singaporeans will live even longer. A forecast from the Institute for Health Metrics and Evaluation (IHME) predicted Singapore’s average life expectancy to be 85.4 years in 2040.

This fact, coupled with a higher cost of living, makes it important for young adults to make wise financial decisions, and Singaporeans realize that these decisions will greatly affect their future.

From obtaining FIRE (Financial Independence, Retire Early) to creating a small fund for their child, Singaporeans are more attentive to their financial goals.

For example, 26-year-old David Geh is looking to make sure he has fully planned for his retirement by the time he turns 30.

Her feelings are echoed by Jasmine Goh, 23, who said: “Like most people, my financial goal is to be able to achieve financial independence and retire as soon as possible, which gives me more time. late in life to focus on my passions.

How financially literate are you?

However, despite a better understanding of the importance of financial literacy, few have the knowledge and skills to make good financial choices.

A 2017 Financial Planning Attitudes Survey commissioned by MoneySense found that only about one in five Singaporeans feel well informed about investing.

Some Singaporeans also have misconceptions about when to start financial planning.

A fifth estimate that they would only need to start planning financially when considering retirement, and half of young working adults aged 17 to 29 have not started to think about financial planning because they think it is still too early to do so.

To make informed financial decisions about investing money and saving for the future, more in-depth knowledge is clearly needed.

In addition, Same Storm, Different Boat, an article published as part of a series of research studies by DBS NAV Financial Health, pointed out that people between the ages of 25 and 35 are more likely to invest, possibly due to of their lower financial commitments. This makes financial literacy even more important for today’s youth.

Many would have learned basic financial knowledge about saving, investing, and budgeting from their parents or peers.

However, since the experiences of previous generations do not fully apply to our own, there is a need to look for other ways to stay relevant and informed.

Where then can young Singaporeans develop the financial literacy they need?

Meet the Terrier by DBS

DBS the Terrier
Image Credit: DBS

The Burrow is Singapore’s first bank-led community to share financial literacy concepts and advice. Managed by a small team of community managers, the community is a safe place that encourages members to learn, share and help each other.

From the fundamentals of investing tools like exchange-traded funds (ETFs) and mutual funds (UTs) to daily thoughts on what one would do with a sudden windfall – members can expect different stimulating conversations.

The Burrow is also a place where members can score first points on product launches and campaigns, enter contests and giveaways, and even attend exclusive events with DBS experts and other thought leaders. keys.

This allows members to progress on their own financial journey, but to be empowered to set ambitious goals while leading fulfilling lives.

Over the past two years, the community has thrived through two Facebook groups – The Burrow and POSB Parents – with a combined membership of around 30,000 members.

The Burrow was designed as a project group to provide helpful tips and tricks to DBS Multiplier account holders, enabling them to unlock higher interest rates.

On the other hand, POSB Parents started out as a platform to help users of Smart Buddy (the world’s first portable savings and payment system for children) to resolve user-related queries.

Still, the community team saw the potential to uplift the next phase of the community by co-creating it with members. During a two-year process, members shared their feedback and vision for an ideal community space through face-to-face immersions and online surveys.

This grassroots collaboration saw the merger of the two groups, now known simply as The Burrow (members voted to keep the name). A treasure trove of financial knowledge fueled by everyone from recent graduates to young parents.

Wider, unrestricted conversations

The DBS Terrier
Image Credit: DBS

Today, The Burrow continues to thrive as a place for members to improve their financial literacy game with content developed by experts at DBS.

Members are also regularly asked to know what they would like to see and learn, so that the content can be skillfully tailored to their needs.

The Burrow’s revamped forum-style course, hosted on the DBS Bank website, allows members to discuss everything with like-minded peers, from cryptocurrency to investment platforms.

In fact, the community team encourages discussion on a variety of topics, even if they don’t relate to the realm of DBS products or services. This allows for transparent conversations around money.

The community also provides a library of resources for users to learn about financial topics relevant to Singapore through learning units. Topics range from understanding the Central Provident Fund (CPF) to tips for cultivating a money-saving mindset.

The best part? Burrow members are always ready to share their two cents. This is important for young adults looking for real feedback.

Shermane Wong, 26, can attest to this. Although she frequently scours blogs and financial education sites for information on investing and saving, she prefers to hear firsthand the experiences of other people at similar stages of life.

“My parents don’t know very well financially, so they can’t guide me either. Even though I would like to say that I am in control of my finances, I am worried that I still lack information, ”she said.

This is where The Burrow comes in. The new Community Space offers categories for dedicated conversations, so members can easily find a specific discussion thread that meets their needs or interests.

The DBS Terrier
Screenshot of the Burrow

In the “Ready for retirement” category, you can find advice on how to maximize your Central Provident Fund (CPF) or how to take early retirement.

“Improving the way I manage my money” is a popular conversation category, with over 32 different community members sharing where they would park emergency funds.

The DBS Terrier
Screenshot of the Burrow

Starting a family is a monumental new step that comes with a whole host of challenges that you wouldn’t expect. For young parents, this means not only having good personal financial management skills, but knowing how to set financial goals for the whole family.

The Burrow’s “Kids & Family Matters” conversation category is a great place to start, with discussions like savings accounts for kids.

“Even though I feel equipped enough to reach my financial goals, you can never be fully equipped. There will always be people with a better or smarter way of doing things, and resources that I may not know, ”said Jacky Yap, future parent.

“Our long term financial goal is a constant work in progress and we are always looking for ways to save money and invest in good financial products,” he added.

On the flip side, 24-year-old Derrick Teo wants to start a small business after graduating from college, but feels he needs more information on the financial side of his business.

“I have done a lot of research on the type of business I would like to start, but in financial terms I hope I can get some advice from other people who might have been in the same situation as me,” he -he declares. mentionned.

A community that continues to grow with you

Image Credit: Mimi Thian on Unsplash

While The Burrow offers two-way conversations, young adults can also subscribe to DBS For Young Adults on Telegram – a broadcast channel for those who prioritize updates on the go, anytime, anywhere.

In fact, look forward to notifications of upcoming community exclusives. Coming soon, Reddit-style “Ask Me Anything” sessions at The Burrow, where community members can connect with subject matter experts in DBS and other interesting collaboration partners.

Members can also expect to connect with each other through community meetups and get the first dibs on exclusive community loot. With previous events featuring exclusives like a free community film, workshops with fund houses, and even parent-child bonding sessions – there is certainly a lot to look forward to.

This article was written in conjunction with The Burrow by DBS.

Featured Image Credit: Dr Wealth

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