Views with impending recession. Young vs Old
October 29th, 2008 by ALVIN SOONG
There was a viewpoint in the response of both the younger and the older generation with respect to the coming recession. An interview was made and the summary as follows:
THE YOUNG
Some felt unperturbed as they felt the recession means little and they can still spend as they are getting money from their parents.
The undergraduates don’t feel disturbed as their focus would still be studying. One of the graduate even expressed that if economy doesn’t do well, he just have to settle for lesser paid job like a waiter and spend less
The 20s felt they will not be retrenched even if stock market doesn’t do well. Most remain unfazed.
Those overseas job earners especially those from US who are highly paid and are retrenched from US sees it as a time to come back to see a job in US.
Young adults under 30, for instance, make up the fastest-growing age group of debtors in Singapore. Of 507 people who went to Credit Counselling Singapore for help in the first nine months of this year, 18 per cent were under-30s, up from 8 per cent of 573 people in 2006. The main reason was overspending. On average, each young adult owed $55,000 - to up to seven creditors
Despite some of the inept viewpoints, one good thing to learn from them though is that they have the time to go through the cycles and have the unfazeness to go through this recession.
THE OLDER FOLKS
Having experienced at least five recessions in their lifetime, retirees know all they need to be more thrifty than ever.
Some like teacher Abdolah, featured in Straits Times, used to be laughed at for being thrifty, now has the last laugh. He owns a semi-detached house with his thrifty habits and save wisely with NTUC INCOME policies with his belief that his retirement savings will not be affected by the financial crisis because ‘NTUC Income is government- linked and should be stable’.
Some of the unfortunate ones like technician Toh, who though started dabbling in the stock market in 1968, had placed $500,000 and lost almost 90% paper loss. He may not have the time frame to brave through the time cycle for the profits to come up.
Generally the older folks are wiser and thrify in their money spending. They have brave though tougher times like eating tapiocas only in war times. These are the resilent and money-wise habits we can pick up from them.
TIPS FROM EXPERTS
Make sure your health insurance is in force and provides substantial coverage. A major illness can really drain your finances - something you cannot afford during bad times.
If you are ill and need to be hospitalised, get a referral letter from a polyclinic instead of a private general practitioner. You may not be eligible for lower-class ward subsidies otherwise.
