Budget-Friendly Tips For Singaporean Teens

Saving money as a teenager is challenging, especially when your social media is constantly flooded with #OOTD posts. Online shopping is so tempting! Your peers may influence your spending habits too. It is important to note that while saving money is hard, it is not impossible!

WIDEN YOUR KNOWLEDGE

They say that knowledge is power. This age-old statement highlights the importance of handling your own money smartly to make less financial mistakes. Educate yourself by purchasing books on financial literacy, by taking free money courses online, or by asking your parents for advice.

Parents and guardians play an integral role in shaping their children’s financial behavior and attitude towards money. May teenagers rely on their parents to set the right example when it comes to spending. Of course, it is not always easy to navigate the tricky waters of personal finance at this time. Hence, parents must teach their kids about the value of money and notice their spending habits.

KNOW WHERE YOUR MONEY IS GOING

Know where your money is going by downloading a software that can help you note down every single expense. I used to use either Mint or Spendee. Both apps are free.

While you crave for independence, you seek for your parent’s help when you run out of cash. Another way to keep track of your expenses is to allow your parents to view your transactions online. You may discuss meaningful ways to use your extra cash upon sitting down with your parent. Some financial apps such as DBS PayLah! allows the parents to monitor the teen’s digital allowance. It is safer as auto-debit is disabled. Furthermore, teens 16 and under will have a limit of S$999 to reduce the risk of fraud or theft.

USE YOUR STUDENT PRIVILEGES

Your student ID is more than just a representation of a less flattering picture of yourself. It can also get you discounts and promotions from different retailers. For instance, POPULAR bookstore offers student cards to teens. This will enable you to have a subscription of about S$8 for a year and S$20 for 3 years. This membership card includes birthday privileges, complimentary magazines, exclusive invites to members-only events, member’s discount, and more.

Moneys inside a pig

(Image credit: Anders Steen Nilsen, via Flickr)

Getting all the discounts or maximizing your privileges as a student can make saving a whole lot easier. It ensures you can put more of what you make in a safe place until you need it.

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Keep Yourself Busy With These Brilliant Stay-At-Home Ideas

Not all establishments are opening during Phase 1. This means that many Singaporeans are still working from home. Staying mostly indoors for long periods of time can take a toll on anyone. One way to get rid of the unpleasant feelings you have been having is to keep yourself busy. Here are five stay-at-home ideas that you can explore to spice up your days!

#1: BOOST YOUR CHILD’S ACADEMIC PERFORMANCE

Increase your child’s grades by using technology to your advantage. Distance learning is no longer limited to schools as more enrichment and tuition centers have been opening their doors to modern possibilities. Companies such as 88tuition and ThinkersBox can help your child excel in various subjects.

The former provides video-based learning materials suitable for students from Primary 1 to Secondary 4 for subjects such as Mathematics, Mandarin, and English. The child will be able to take his or her own pace through reviewing and re-watching these videos. The latter provides enrichment classes for kids geared towards enhancing their brain development. ThinkersBox enables your child to concentrate well with its Brain Booster sessions focusing on developing concentration, stronger attention span, and other cognitive abilities. See these websites for yourself!

#2: SPARK JOY IN YOUR WARDROBE

Your routine may consist a cycle of: eat, sleep, and repeat. However, this does not mean that you have to forgo dressing up. You still need do occasional grocery and office runs. Do this in style by de-cluttering and mixing up your wardrobe. Start by cleaning up your closet and searching for items that you can donate or dispose. Get rid of these items. Lastly, you can purchase online to avoid coming in contact with the mall crowds.

Buying your new outfit online is so convenient these days. Virtual Boutiques such as Zalora and Love, Bonito have a wide array of selection. Take advantage of their seasonal promotions such as the previous Chinese New Year sale.

#3: EXPERIMENT IN THE KITCHEN

While following the CB period, my sister unleashed her talents in baking. She recently cooked the most delicious and chewy chocolate chip cookies. She had everyone involved and so can you! Make cooking a family affair or a friendly competition among parents. The two opposing dishes can be judged based on the taste, affordability, and presentation. Who says dining at home has to be boring?

Your family’s routine may have changed due to the pandemic, but you do not have to lead a bland life. Take this time to spend quality moments with your family such as when you cook together in the kitchen.

#4: RE-VISIT YOUR FINANCIAL GOALS

With time in your hands, take this opportunity to re-visit your financial goals. What were you aiming to achieve in the new decade? What were the financial steps that you put on hold, before the pandemic? Browse educational articles online to help you brush up on your financial knowledge or gain new money insights through in-depth research.

You can consider opening a trading account as you begin your investment journey. Or, you may educated your children about the basic concepts of money. It pays to integrate a sense of curiosity in them at an early age.

#5: DO MENTAL CHECK-INS

Mental health is as important as your physical health. Ask yourself, your friends, and family members a simple question. “How are you feeling today?” This question can unlock many underlying issues or problems faced due to the COVID-19 situation. Some people have a hard time sleeping at night. While, others cry due to their anxiety of not going back to work.

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Checking the emotional state of people close to you can show how much you care for them. Allow yourself to experience these complex emotions and know that you will not be in the same state forever.

Sources: 1 & 2

 

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Financial Planning In The Wake Of COVID-19

Financial planning has never been an easy task, but the pandemic has made it even more difficult. Finance professionals are used to consistency and accuracy. They are not trained to plan for unclear economic conditions. No one is! The five-year plan that we are supposed to send to our supervisors is now completely out of the window.

How can you plan for your finances, if you do not know what is going to happen in the future?

#1: HAVE A ROBUST PLAN

You can better understand your financial resources such as investments and cash flows, if there is a robust financial plan in place. A comprehensive plan covers the ares of budgeting, investment, insurance, retirement, credit, and estate planning. When these areas are well covered in a sound financial plan, you have a greater clarity on how each financial decision affects another.

Specifically, the financial-planning team should focus on the following five steps: getting a clear view of the company’s position, building a fact base, aligning the financial plan to a concrete direction, determining the best moves, and identifying the trigger points that prompt businesses to adjust.

#2: KNOW WHERE TO START

Companies and individuals must know where to start. To get this, you need the support of experts. Together, you can see the historical and current financial trends. The January 2020 financial plan can be a good place to anchor on. This can help you to establish any assumptions that will need to change as a result of the pandemic.

#3: ENSURE THAT YOU HAVE POSITIVE CASH FLOW

Set up a realistic budget, which indicates your money inflows and outflows. Having an emergency fund that covers you for three months can ensure that you have enough liquidity to tide you and your dependents during financially difficult times. Doing so will give you some peace of mind even if you suffer temporary setbacks such as losing a job or are unable to make a living because you must be quarantined

#4: GET INSURANCE COVERAGE

Insurance is a means to cushion against financial losses and unexpected events. Find a suitable hospitalization and life insurance plan to cover your hospital bills and critical illnesses. There are also insurance plans that are related to growing your savings like endowment plans and investment-linked insurance plans.

Image Credits: pixabay.com

Focus on what you can control. Set up a sound financial plan, carve a realistic budget, get insurance protection, diversify your investments, and commit to a long-term strategy to achieve our life goals.

Sources: 1 & 2

 

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Telltale Signs That You’re Financially Unstable

Your sense of stability will be at its peak at the age of 40. During this phase, you will get more control on your finances and your family plans. You may prioritize your child’s education and sustain the needs of 3 people in your household. On the flip-side, being financially stable in your 20s is a rare sight!

It is terrifying to navigate through the adult world while being confused with will happen next. Sometimes, you think you have plenty of money to spare. The next minute, you feel that you need to call your mom or dad for help. This stage of instability can last up to your 30s.

Relax. You are not alone. For a friendly warning and healthy awareness, here are the telltale signs that you are not doing financially well.

999. WHAT’S YOUR EMERGENCY?

It comes as no surprise that you will borrow a small amount of money while you are applying for a job. Sometimes, you may ask for a little help too. However, if you have your parents on speed dial as your financial helpline, you are in a sticky situation.

Your parents may not be able to support your financial needs all they time as they are going through another phase of their lives – retirement. It is seemingly embarrassing to rely on your parents when you have no cash left as an adult. Hence, you need to do your best not to be an added weight to your parents.

YOU BETTER HAVE MY MONEY!

With red markings on your calendar, you saw that #PAYDAY is two days down the line. You keep on waiting for this day to come. You have not gotten your salary yet, but you have numerous plans on how to spend your money. Do you want to hangout with your friends at the pub? Do you want to purchase the designer bag online? You have no worries! You got plenty of money. At least, that was what you thought.

Seven days after your payday, you are already regretting most of the things that you have done. Why didn’t you spend your money wisely? You should have kept some of your money in your investment portfolio. Now, you are wondering how you will get through the week with only S$50 on your pocket.

PAY ME WHAT YOU OWE ME!

It is your creditor’s phone operator again. The operator is calling to remind you about your unpaid credit card bills. You think you are responsible just by carrying a credit card? You think you will only use it for emergencies? Think again!

As you get comfortable with swiping your expenses on your plastic card, you will be able to widen the scope of your shopping categories. After two to three months, you will notice that you will feel safe to swipe your card when purchasing new clothes and when eating out. Online shopping? It is easy with a credit card!

Your bill arrives and you feel horrific! You are wondering where you can borrow money to pay for all your bills.

WHAT SAVINGS?

You are in a financially unstable place if you do not have a savings account. A payroll account does not count! It is essential for working adults to have a separate savings account to create an emergency fund.

People typically see the value of a savings account after being caught in a financial mess with no emergency funds or no one else to run to. Taking loans or cash advances can incur more debt in the future.

THE FUTURE IS NOT NEAR

You are not thinking about your retirement. Retirement? Yes. You are too young for this. You have your lives ahead of you. But, time is in your hands. Use its power to create a wealthy retirement fund.

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You do not want to beg people for money 30 to 40 years down the road. Being financially stable is a lot of hard work, but you can achieve that by planning and spending wisely. Reach your financial goals in a slow and steady pace.

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Creating A Budget During Extraordinary Times

With non-essential establishments on closure and the economic crisis we are under, how can you employ a system to arrange your cash-flow better? The answer is strict BUDGETING.

A budget estimates your revenue and expenses over a period of time. By listing your sources of income beside your monthly expenditures, you will get an idea on where your money goes. This way, you can make smart financial choices and prioritize your obligations to reach your financial goals.

Creating a budget for the first time is like learning how to ride a bike. At first you are scared to ride the bike without training wheels. Eventually, you will be able to ride a bike on your own without qualms. Although you know cycling is healthy for you, you cannot just ride and go! You must learn about the basics of coordination and road safety. Creating a budget during a pandemic involves steps too. Here are the vital steps to create a working budget:

1. COLLECT YOUR DATA

Gather all the previous salary invoices, credit card statements, utility bills, bank statements, and receipts. Estimate how much you make and spend each month by using these necessary resources. Take note of the changes in the expenses due to the Circuit Breaker (CB) period and allow yourself to incorporate Government allowances too.

Start your budget by calculating your revenue since the CB. Add all your sources of income both from your part-time and full-time jobs (if any). Use your minimum monthly wage as a basis for your budget.

2. SET YOUR GOALS

Set S.M.A.R.T. goals and examine how you will be able to achieve each one. This acronym stands for Specific, Measurable, Attainable, Realistic, and Timely. I want to highlight that you must not make unrealistic and unattainable goals at this time. After satisfying S-R goals, you must budget according to your time-frame. List all your financial goals and divide them into short-term and long-term goals.

For goals to be specific and measurable, you must quantify what you want. For example, your goal is to increase the number of clients that will view your website. You may allot money to Facebook promotion or to hire a freelancer that will create your web design. I suggest that you focus on Marketing as it is more feasible given the limited physical movements that you can make during CB.

3. IDENTIFY YOUR FIXED EXPENSES

For many of us, lessors have postponed the payment of the April rent. You can only imagine the increase in your utility bills as you are mainly staying at home. These essential expenditures are called fixed expenses. Come May, you are looking at a wider range of fixed expenses.

Fixed expenses include rent, utility bill, and insurance. As they are stable each month, allocate a portion of your income to this category first.

4. ALLOT MONEY FOR EMERGENCIES

There should always be a budget for savings, especially for your emergency fund. Savings are your gateway to long-term financial goals and your safeguard against unforeseen events such as COVID-19. Set aside at a certain percentage of your revenue each month to help build a nice nest for your future. I personally recommend at least 10% but you have to give a percentage that you can maintain for the months to come.

5. USE A CLEAR SYSTEM

Help yourself navigate through the waves of budgeting by keeping a money journal or by downloading a digital budgeting tool. Supplement your budget with a calculator that enables you to know your cash-flow. It is called the Budget Calculator.

Then, download free apps that enable you to track your spending. Some of these apps are Mint and Spendee.

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No one knows how long this pandemic will last. Hence, you must be frugal with your expenses and eliminate unnecessary luxuries. Moreover, you may look for other ways to expand your income!

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