Financial Knowledge of Our Youth

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

– See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

– See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

Singapore youth not confident about financial future: Survey – See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

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Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

Note : The above article was extracted from http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv

 

Shocked as I am

After reading this article, it do make me ponder for a whiles and think in the shoes of both their generation and my generation (I born in 1970+). And it alarming for me to know that in their financial knowledge vocabulary, they believed just 3 months of emergency fund will be sufficient, instead of 6-12 months! I believe such survey only reveal the tip of the iceberg and, what worry me the most is that, most of our youths are pessimistic.

In their next decade of years to come, housing will be their biggest ticket item that they ever have to pay up, as compare with the rest of the expenses like transport, meal and others. Due to limited land in Singapore, increased influx of external work forces and plus the nature of our Fiat Money, it don’t take a genius to predict the higher Housing price to come.

During our parent generation (those born in 1940-50s), it is common to just have our dad being the breadwinner, and our mum to take care of the household full time. They still can survived in that mode. Come to our generation, both husband and wife need to work just to make both end meet.

Given this trend, can we derived that we need to work along with our kids when it is their turn to own their house and support out with their housing loan? That will not be a pleasant way to enjoy my retirement with my wife.

To help them to cope with this oncoming issue that we can easily predicated and to help ourselves with a smooth retirement, it is crucial for us to install sufficient financial knowledge in our kids. And as parent, we must not rob their innocent off, whiles forcing down their throat with all these “adulty” financial knowledge.

bigfatpillar.com contain articles which help on with the Financial Education for the Adults, but for child, let’s read on on some of following advises extracted from http://www.moneysense.gov.sg/financial-planning/guides-and-articles/getting-your-kids-started-on-money-management.aspx

 

Getting Your Kids Started On Money Management

An article in the newspapers generated much surprise recently when it reported that some parents continued to pay the mobile phone bills, shopping sprees and car loans of their children, who were all working adults.

Although a temptation to indulge one’s offspring is natural in every parent, children who grow up without learning the value of money and the consequences of extravagance may be heading for disaster if their bad money management leads them down the slippery slope of financial bankruptcy and debt problems.

It is important to start inculcating sensible money management habits in children. This can help prevent them from developing extravagant spending habits or falling into the trap of living beyond their means through credit cards.

Building a Foundation for Dollars and Sense

Children as young as three can start to learn the basic elements of money and finance. Communication is the key to igniting their interest in money matters.

If you ask preschoolers where money comes from, many may say “ATMs, where else?” This is not a surprising fact as they have often seen their parents “magically” drawing money from the “money machine”.

One possible way to spark your child’s interest to learn about money matters and correct this misperception is to explain to your child that “money does not grow on trees” and that the ATM does not magically disburse money. Make the connection that the money in the ATM that you are withdrawing is your own and you are simply taking out the money that you have put in. Children need to learn that one needs to work in order to earn money. It is also important to inculcate the discipline of savings and thrift from a tender age.

The bottom line in educating the children is to lay a foundation for good saving habits and to allow them to
understand how to make sound money choices with the allowances and monetary gifts they receive at Chinese New Year, birthdays etc. Do find ways to consciously exploit everyday opportunities like ATM withdrawals or grocery shopping to explain the principles of wise money management or the concepts behind monetary transactions to your children.

Saving Early

Fostering the saving habit early in childhood is necessary to start your child’s journey in financial education. Even 2- year olds can be taught how to put money into a money box (e.g. a piggy bank or any container for saving money). Although they may not grasp the concept of savings, the introduction of coins and notes and putting them into a money box teaches them basics about money identification and differences between the different denominations.

The savings pattern and the time period allocated for a savings goal should be tailored to the age and maturity of the child. The younger the child is, the shorter his or her attention span will be. Therefore, if the child was intending to save enough money to purchase a certain item, the item should be attainable within a short period of time in order to prevent the child from feeling that saving is a hopeless, endless endeavor.

On the other hand, if the child were older, the saving pattern could be extended by turning the saving goal into something unattainable within a short period of time. Encouraging children to save for a few months before they can purchase a favourite toy can teach them the virtues of patience and deferred gratification.

Saving habits can be inculcated more effectively if children can witness and observe the actual accumulation of their savings efforts. Some parents use a clear jar rather than a money box as a young child may feel that the money is “gone” if they cannot see it. Visual representations are important for children and putting a picture of the item they are saving for in their “bank” reinforces their motivation to save. Tracking your children’s progress through a chart also motivates them to save because the chart serves a reminder of their discipline and achievements.

Another method of encouraging your child includes matching his or her savings amounts. So if your child saves 50 cents a day, you can encourage him or her by also contributing 50 cents to his or savings. Besides serving as a reward for the child’s efforts, it can also help reinforce the saving habit and spur him or her on to save for future financial goals.

As the child becomes more proficient in saving in one jar or money box, parents may introduce more sophisticated concepts through other ways of saving. For instance, they can introduce four money boxes to convey the importance of saving for different purposes. The child may distribute his savings across four different money boxes. They are namely

(1) a spending bank for money to be used soon,

(2) a saving bank for money to be used later,

(3) an investing bank for money to grow on its own (take the opportunity to open a bank account for your child, update the passbook and teach your child about interest, deposits and loans) and a

(4) bank for donations to help others.

The practice of “save some, invest some, share some and spend some” not only provides children with opportunities to develop good money habits, but also teaches them to look beyond their own needs and care for the less fortunate.

Breaking the Bank

The celebration of saving is the ability to spend. Making children understand that whatever you spend must be supported by what you save is a great way of teaching them how to live within their means. When your children ask for something in the store, explain to them that you will have to pay for it and that it is not free. Suggest that they utilize the savings in their money boxes if they truly want the item. For younger children who may need more visual representations of the concept, you should also allow them to see the money, hold it, pay for the item at the checkout counter, and receive the receipt along with the item.

With older children, the concept of “needs versus wants” should also be introduced in tandem with learning how to spend only what you save.

An easy way to teach this concept is to take your kids out for a trip to the supermarket. When you are in the midst of shopping for the family groceries, show your kids why some purchases are necessary while others are optional. In addition, draw their attention to the prices of items and highlight the existence of discount coupons or weekly sales. By doing this, your children will be taught that in spending, we can save too and this will equate to more money remaining in daddy’s money box.

Even at their favourite restaurant, you can ask your children to compare menu items and prices. Let them exercise their arithmetic skills by asking them to add up the bill. This will make them more conscious of the amount that they are spending and this will encourage them to decipher between what they really want and what they are simply choosing on a mere whim.

Caught and Taught – Wise Money Management

Teaching children about money management habits is not merely telling them what you want them to do. Children learn through experience. Encouraging them to save through their money boxes or allowing them to handle their own money during “field trips” has a more lasting impact. Hence, always seize real-life opportunities to teach your children the benefits of good money management.

Taking the time to teach your children the lessons of good money management will probably be one of the best investments in time you will ever make. These lessons will equip your children with the skills to secure a good financial future for themselves and their families. If letting go of the apron strings is the hardest thing a parent can do, letting go in the knowledge that your child is going to be a financially independent and responsible adult may perhaps lessen the pain a little.

 

What is BigFatPillar all about?

Question on BigFatPillar

Last week, one of my friend came up to me and asked me this question on my recent effort on blogging “Fredrick, what is bigfatpillar.com all about? Your articles varies from topics to topics.

And here is my answer. BigFatPillar is all about sharing of ideas, experience among us on building up strength in Financial, Health, Family, Spiritual in view of Wealth Creation, Preservation & Improvement.

I have created BigFatPillar Google + Community page at http://plus.google.com/+Bigfatpillar , and looking forward to your ideas, experience or discussion.

Dividend Stock as part of Your Investment Plan

dividend-stockIn this article, i shall discuss on my favorite type of stock which is dividend stock, and why i love to have these darling in my Investment Portfolio!

Type of Stocks

I will broadly classified stocks namely as the following:

-Capital Appreciation Stock (time frame of Mild to Long term holding)

Capital appreciation (CA) is the increase in the value of an investment/trading that you make. You will get CA when you get a profit of the difference between the purchase and sale price of the stock and less of the purchase and sale commission costs.

It may required a time frame from months to years of stock holding before you gain from a decent CA. And of course, it will required some commitment from you to get the education on certain skillset, experience and monetary strength in order to pick the winning stock.

-Dividend Stock (time frame of Mild to Long term holding)

Some corporate has the history to distribute their earnings to company shareholders in the form of Dividend. It could take place as Stock or Cash distribution form (Dividend yield). And do take note, that some company distribute Dividend on a regularly basis (quarterly), while some only take place once in every two years or longer. Please do your research on their distribution interval.

On general, such stock will required from months to years holding, since investor are focused on the regular Dividend.
-Penny Stock (time frame of Short to Mild term holding)

Penny Stocks are what we label as the Small-capitalization equity shares. There are plenty different way of how investor/trader classified penny stock. Some based on their total value of stock shares market capitalization whiles other just on their per share values. For me, i just take those that being trading below twenty cents as Penny Stock.

As Penny Stock being priced extremely low, it make relatively easy for individual to purchase large quantities of shares with the aim of quick profit, during rapid price movements. As a result, it make Penny Stock extremely volatility and considered to be highly speculative type of stock.

 

3 Top Reasons why i love Dividend Stocks to be in my Investment Portfolio.

After discussing briefly on the different type of stocks out there, readers out there should have a better understanding of them. If you still get confused, do invest some time and effort to educate yourself over it. It’s what you do during your free time to make yourself more wealthier.

-Dividend
Dividend stock as what it name implied; to distribute in the form either Stock or Cash reward to their royal company shareholder regularly. It always better to invest in such type of stock with a good Yield than to park all your money in Bank Account or Fixed Deposit with a low interest rate. And you can bet that you be feeling happy to receive statement showing regular decent payment into your investment plan, as you are building your Big Fat Pillar!

 

payout-Stable
As most of us will be busy with our Day Job and focusing our energy and time in our Career and Family and other commitment in Life, we may not have enough time to keep a lookout for our Investment Portfolio everyday, unless you got a reliable Personal Stock broker. Dividend stock will be the perfect solution for that. Reason being that those royal company shareholder tend to be long term investors, and you can expecting much lower volatility, lower stock price swing. Besides that, they tend to be more stable than other type of stocks especially when in time of uncertainly in stock market due to their dividend nature that cushion the fall.

 

CA-Capital Appreciation

Another main reason why i consider them as darling for any investor, there is a high probability  of Capital appreciation (CA) over the years during the Stock Market Bull period. History has proven it and it will just repeat again in the future.

 

 

 

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Disclaimer
:

All analysis are based on my own personal point of view and experience and it should not be used as a decision to solicit buy/sell activity.

And purpose of this article is written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.

The owner will not be liable for any errors or omissions in this information nor for the availability of this information.

The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Look for Suitable Job, not the Right Job

Recently, i came across this funny but profound article from Mike Rowe’s (Host of The Discovery Channel’s hit show, Dirty Jobs) reply to one of his fan whom been trying hard to look for the right job, but not the suitable job.

Look for Suitable Job, not the Right Job

And here some extract from his article and do read up at http://news.distractify.com/people/mike-rowe-crushes-a-mans-hopes-for-finding-a-dream-job-and-i-agree-with-him-100/?v=1 for the whole article that Mike Rowe on look for Suitable job, not the Right job.

Stop looking for the “right” career, and start looking for a job. Any job. Forget about what you like. Focus on what’s available. Get yourself hired. Show up early. Stay late. Volunteer for the scut work. Become indispensable. You can always quit later, and be no worse off than you are today. But don’t waste another year looking for a career that doesn’t exist. And most of all, stop worrying about your happiness. Happiness does not come from a job. It comes from knowing what you truly value, and behaving in a way that’s consistent with those beliefs.

 

Spend your time on the Suitable one

It is common to hear from friends, colleges or relatives, on looking for the Right partner, soul-mate, business partner, boss, career and etc. The list just go on and on. But such mindset/thinking just put up un-neccessary stress on oneself. You may just spend your lifetime just to look for the right one. For the same amount of time, energy and effort that you spend on searching for the Right one, you could have gotten back several Suitable one in various aspect of your life.

So let’s start replacing the word “Right”  with “Suitable” in our daily Vocabulary! And start spending more time to look for the Suitable ones  and on them!

 

History of Fiat Money.

History of Fiat Money.Money

I just thinking aloud if anyone of us ever wonder how money being created? And how does the system of money work? It’s important to understand how this money works, as it will be curial toward building your Big Fat Pillar.

Let us read on, and i shall explain it with illustration and video.

 

First of all, what is Fiat Money?

Money as we know it, something we use it everyday, but it has some hidden secret whom most of us are not aware of. One of the biggest secret of money is that almost all Currencies in the world belong to Fiat Money type. And what so special about this Fiat Money Currency, is that it not peg to any Commodities or Gold. Instead, it’s peg to the rating given to each country instead. Click here to find out more on the rating for each Currency!

 

Fiat Money created inflation.

Since Fiat Money is not peg to any Commodity or Gold, it is very easy to create money as to compare to create Money that is link to Commodities or Gold. In the system where Money being link to Commodities or Gold, it is highly restricted by the amount of Commodities or Gold that each country hold.

And in world of Fiat Money, you can expect more Fiat Money to be created each second, minutes, hours, day. You just need high quantity paper or printing material and sophisticated printing technique to print out the perfect looking Fiat Money. It get even worse in the era of Information Technology, where Fiat Money are stored in the electronic way. It just need more hard-disk space in the Database system!

With more Fiat Money flooding the market, of course, for the same item, it cost more Fiat Money in the future.

 

How Fiat Money being created.

In 1971 August 15, US President Nixon delink US Currency with Gold, and that spark off the start of Fiat Money System to be widely adopted by each Country’s Central Bank.

The below picture perfectly illustrated the creation of modern money, where Bank just need to keep 10% of each deposit amount and they are allowed to borrow out the remaining 90%. The cycle just going on. For more detail, go visit http://money.howstuffworks.com/personal-finance/banking/bank1.htm.

How Money being created.

How Money being created (http://money.howstuffworks.com/personal-finance/banking/bank1.htm)

 

For those whom still did not get it, i guess you get a better picture of Fiat Money by watching the following videos. Sit back and enjoy the show!


Video 1 – 47min

 


Video 2 – 1hr 16min

 


Video 3 – 1hr 2min

 

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You are wanted as Contributor Writer!

To be BigFatPillar Contributor Writer

I WANT YOU!

You are wanted as Contributor Writer!

As i wish to expand and share more of my ideas/concept/thinking in Wealth Creation,  Preserve and Improvement in view of building our Big Fat Pillar in Financial, Health, Family, Spiritual of our life. And using this website to create a platform to allow sharing of information by all.

I’m a strong believer in Open Source, inspired by Linux (I’m a Software Engineer that heavily influence by Open Source Software and Linux).

Sharing is caring! 🙂

And I’m calling for more Contributor Writers to step forward to answer the call! To grow our these Big Fat Pillars!

Your heroic action will be knowledge as the owner of each article that you contributed.

You can steps forward as a Contributor Writer and start writing articles in the following areas and other related topic to these areas.

Do feel free to email to me at fredrick@bigfatpillar.com and hear from your guys soon! 🙂

-Financial
Career Advise
Career Skill
Investment

-Family
Interpersonal Skill
Relationship Building
Family Safety Net : Insurance

-Health
Diet
Exercise
Meditation

 

Click here to know more about me or here for more articles!

Sheng Siong – a good dividend stock?

Sheng Siong – a good dividend stock?

I’m a great fan of dividend stock, especially those with sound business model and in the right industry( Example, with recurring business). Two weeks ago, i enter into this trade @ $0.62 and i re-enter Sheng Siong today @ $0.665, which i using Average Up method instead of Average Down. And i shall talk more about this Average up method in the future.

The uptrend of this stock still look promising with a support line @ $0.58, and a dividend yield of 3.910%(2013), 4.135%(2012), 2.662%(2011). The stock looks like it being consolidated for 6 months, and let see if it shall provided the boast for it to break $0.690 in the coming months to come.

shengsiong-150714

Company Background

The Company was incorporated in Singapore on 10 November 2010 under the name of Sheng Siong Group Pte Ltd. The Company changed its name to Sheng Siong Group Ltd on 4 July 2011 in connection with its conversion to a public company limited. The Group comprises the Company and its subsidiaries, SS Supermarket, CMM Marketing and SS Malaysia.

The Group is principally engaged in operating the Sheng Siong groceries chain. Its stores are primarily located in retail locations in the heartlands of Singapore, and designed to provide customers with both “wet and dry” shopping options, including a wide assortment of live, fresh and chilled produce, such as seafood, meat and vegetables, in addition to processed, packaged and/or preserved food products as well as general merchandise such as toiletries and essential household products. The Group has also developed a selection of housebrands to offer customers quality alternatives to national brands at substantial savings. To support its retail operations, the Group also has an extensive distribution network, food-processing facilities, and warehousing facilities. In May 2011, the Group completed construction of its new corporate headquarters and warehousing and distribution centre at Mandai Link.

(Data from http://www.shareinvestor.com)

 

Disclaimer:

All analysis are based on my own personal point of view and experience and it should not be used as a decision to solicit buy/sell activity.

And purpose of this article is written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.

The owner will not be liable for any errors or omissions in this information nor for the availability of this information.

The owner will not be liable for any losses, injuries, or damages from the display or use of this information.