Views on Youngsters Not Having Enough Savings

On the radio this morning, the DJ was talking about our youngsters not having much savings and invited callers to share their views. The comments that came in include:

• CPF is good enough.
• I'll save, if only my boss is prepared to pay me more!
• I love online shopping, how to save?

CPF is Good Enough

Oh dear, oh dear. CPF, where got enough? It's only enough for the lower income groups. They don't demand as much and so they can get by with the little income stream post retirement. Alternatively, you better have a lot of kids who are good to you. These youngsters might want to read (1) CPF as an asset that generates income (by SGYI), and (2) my past musings on CPF.

Ignorance.

I'll Save, if my Boss is Prepared to Pay Me More!

If he/she does pay you more, you think you'll save? The more you get, the more you spend. That's lifestyle inflation. It's the discipline to always set aside a sum for investment or savings that's going to make it work. Pay yourself first. Take a pay cut - i.e. slice a portion away from the monthly salary to park into savings or investments.

Lack of ownership.

I Love Online Shopping, How to Save?

I don't know how much online shopping one needs. Are those wants or needs? Beyond a certain point, it's just an addiction. Piles of junk and untouched items taking up space and collecting dust thereafter. The pack rat in a modern form.

Indulgence.

Concluding Remarks

It seems the young can't see the need to save and invest. Retirement needs is a future that is still far away.

It is really hard to ask the young to think so far ahead. Living by the day is pretty normal isn't it? Each eve to the next paycheck, the bank account tends towards zero.

We learn so much maths in school, but we never taught our kids to apply the same maths towards financial planning. Wouldn't it be so much more interesting?

Chapter 1 - Algebra, zzz.
Chapter 2 - Calculus, zzz.
Chapter 3 - Graphs, zzz.
:
Chapter 10 - Financial Planning - how it all comes together!?

Education.