Millennials & Gen Z: Young And In Debt. Why? | Talking Point | Full Episode

foreigner you may have come across them it was very good money I have to wear this button I interacted with them they may feel uncomfortable I feel very alone or even I worked with them I honestly don't think we have it easy increasing of course it's something we couldn't wait, but do we really see them? What are they hiding? This is beyond Plain Sight right now. A simple type of actually costs about four dollars. I'll get like two vegetables and one meat at my grocery store. the bill has gone up by 20 percent my rent is going up about 15 percent which translates to about 300 so date nights we should try to stay home of course I can't do that all the time, I really like a normal girlfriend, so I always take my girlfriend out to eat, right?

I'll try to look for views like one for one or even 20-30 discounts thanks ok I have a car come on it's Friday hello hello and I'm dating a different person. Millennial crowd, how often do you go out socializing weekly or every other week? We'll see which new restaurants and bars we spend around 100ish a package for dinner and drinks when we go out, yes, and to be honest that amount is quite a bit. It's fine for me because it includes drinks. We came in a private rental car just now and you told me the car.

That's actually your preferred mode of transportation. How much do you spend per month? In fact, I drink like 99 of the time when I have to leave. In my house it used to cost about 7,800 a month. I'm trying to reduce the amount. I just got used to the comfort. I can't imagine having to wake up two and a half hours earlier anymore, so it's become part of your lifestyle. Yes. Yes, what about savings? Do you leave money aside? Yes, I try to put in the recommended amount, which is approximately 20 of the income. I feel like I've been doing pretty well since graduating, but recently my dog ​​was feeling sick, so he basically cleaned himself up.

Like most of my savings, I spent a whole day with Joey to see where his money goes, plus complaining, dining, and renting private cars, so what's the next class? That helps me be consistent with my fingers in my purchases and others. Daily needs Joey spends up to 3,000 Singapore dollars a month, but he will find that his monthly salary is not fixed like many his age. Joey has chosen to be a door worker, which means that, although she is her own boss, her pain fluctuates depending on the projects she receives. So what's really beyond the surface in the US? 6 in 10

young

adults worry they will never be able to achieve their financial goals due to the rising cost of living in the UK.

Inflation and slow wage growth are forcing some

young

adults to return home. So how are they? our young adults travel by ferry to Singapore. My morning latte at the Hawker Center is up about 10 cents. Groceries for my family of five cost $53 more a month now, if I choose to eat out, my plate of chicken rice goes up 30 cents FS within Asia is forecast to rise 5.4 percent this year and a

full

tank Gasoline costs me at least 22 dollars more today Inflation in Singapore reached 7 in 2022, the highest in almost 14 years Christopher Gee is a careful observer of the Singapore economy Inflation has skyrocketed in recent years. why Singapore's inflation rate has historically hovered between two and three per cent in 2021, when the coveted measures will begin to lift, inflation increased a little and when the economy began to

full

y open, of course, inflation has increased? it has increased even further from there and we are around five six and we have seen a print of even seven percent.

This source of that inflation is complex. We have had the war in Ukraine. Many supply shocks throughout the region. Of course, Singapore imports all of its food, another factor that has contributed to inflation in recent years is the amount of government support. So in Singapore there was a big package in 2020 and that was followed in 2020 and in 2022 and actually you can think about this. very simply like those CDC vouchers that we all receive and that contribute to an increase in the money supply and with that additional money in people's pockets they can pay for that limited set of goods and services and therefore prices increase, which which is expected to be worse.

When it comes to inflation, young people generally don't have as much income and many young people today have aspirations. We are concerned about the spending needs of young people and the impact of inflation on them. Some people might have to resort to

debt

, unfortunately how. Are they young adults struggling with the rising cost of living? The Institute for Policy Studies and Talking Points conducted a survey late last year involving more than 850 Singaporeans aged between 21 and 29 to find out how they manage their finances for the purpose of this programme. we will turn them into

millennials

majority of respondents 9 in 10 say they are personally affected by rising costs three in ten say they spend more than they earn I worry about money constantly honey is paying off a student loan and a housing loan her Housing and Development board the apartment will be ready in three years, this is also when she plans to get married.

Are you on track to make payments on your big expenses? Yes or no No My hdb is around 300,000 and from my school loan I have 50 15,000 left and so just automatically reduce on my credit card you are paying your student loan using your credit card yes it's ok and pay your money on time credit card yes, but there are some days we have missed, could you save if you did? I ask you to be honest with yourself. What do you think is the main reason why you have not been able to save as much as you want?

There are some things that I feel are distracting and peer pressure like your friends have. Same makeup product, same bag and you feel like you missed it online, it doesn't really help because everyone is promoting everything, they're making it too easy, yeah, and it's tempting for you to buy more and get more foundations. Likewise, you know what I'm hearing girl, online shopping, yeah, it's an addiction. I would say unnecessary expenses because there are additional things that will make me feel good after spending them, giving an example of a very expensive unnecessary item that makes you feel. well usually high end makeup, around 300, how often do you do that to calculate 300 for makeup for example?

I'll try not to do it every month, but it's becoming an every month thing. I think it's fair to say that honey spends almost all of her take home pay each month she also puts at least 900 on her credit card shopping and eating out using credit cards is the norm nowadays but I wonder if honey, without knowing it, you are getting more into

debt

. The foreign console was not difficult for me. anything I have another brand of game console and I left it for some friends so that we can both try new games without spending extra money almost all the furniture in my house is second hand this mattress is from Carousel and my bed frame is from Facebook Marketplace There is also a shelf that I bought on Facebook Marketplace.

I looked for a long time so I wanted this as a divider between my bedroom and my living room and my huge dining room table, some dining room chairs, plus my refrigerator and my washing machine was also moved from the carousel since I didn't have the money and I had a lot of time. I just spent a lot of time looking for secondhand items. Joey started renting two years ago and these second-hand deals have saved him an estimated S$4,000. I don't really budget religiously, but I spend between $2.5 and $3,000 on basic needs, and that includes eating out, grocery shopping, transportation, and shopping, and I pay about a grand for rent that I share.

I currently buy it with someone else and spend about 300 on insurance and try to save about a thousand a month in a joint survey conducted by the Institute for Policy Studies and the topic of conversation three in ten young adults between 21 and 29 years old They say they rely on credit as a means of meeting credit lines include credit cards, almost anyone can apply for one, you just need to earn at least S$2,500 a month and you can borrow up to two months of your income, apart of credit cards, there is another line of credit that is even easier to get, it is very simple, convenient and very easy to use, and I need an eyebrow pencil, so let me show you that I went to the application and started the store where I want to find my eyebrow definer and click pay and it automatically Auto splits my payments now pay later is just as the name suggests.

This payment method allows Honey to pay a third of her purchase in advance, which is 15 today, another 15 a month later, and the last 15 a month later. that there are no additional or hidden costs, so I bought this jacket a month ago using Tommy, my makeup product, this perfume, moisturizing spray cleansing mask, I have been using it right now, pay later for two years, there are others options instead of just telling me. I would say I pay later, but little is more for my trips. What I like most about the binary system is that I don't have to pay on a single target during the month, so I can actually split my course, whereas credit card payments are monthly. payment and if you do not make the payment, you will incur charges the use of buying our post payment or bnpl services have been on the rise in 2020, transactions worth 114 million Singapore dollars were recorded in 2021 amounting to a whopping 440 million Singapore dollars.

That's a nearly four-fold increase in just one year as BNPL services become more widespread. I have to wonder if there are too many good things to be true. One expert believes that young adults are not as financially literate as they should be. Would you say younger Singaporeans are? deeper today compared to previous generations, they are definitely more at risk of going deeper into debt compared to previous generations, part of the reason is a wide accessibility to different instruments with which they can go into credit card debt. Currently, pay later has also been used fairly, so the problem is that when we have a plan like buying our payment data loan has two parts, one is the principal and the other is the interest, so Mainly, the challenge is that there are other hidden costs that many people may not be aware of.

Suppose you are unable to make payment due to an unfortunate incident such as losing your job or some other medical expenses that may and may actually arise. they have an impact on the fines that you have to pay in the sense that the fines act as a kind of pseudo interest in a sense, so even if you think that they will be interest-free for a period of time, that could be one of the things that you should worry about. So we did the survey in 2021 and found that many of the young adults ages 18 to 30 actually have unsustainable debt levels that exceed monthly income, so one to six months' worth of income in debt levels amounts to about one in three had those levels of debt now, if we look at it from the

point

of view of whether they could pay it off in the current circumstances, it might be a bit challenging how worried we should be if having high debt levels early in their lives could take them to the habit of going into more debt, I will pay later.

Services are becoming more widespread. Are they changing the way an entire generation spends? I ask some tough questions to one of the biggest players in the market every time late payment is mentioned, people say oh that's a bad thing young man. Adults are at risk of going into more debt today compared to previous generations due to easily accessible lines of credit. A popular emerging service: buy now and pay later. Assistant Professor Stephanie Lynn believes the marketing of buying our pay-later services is actively targeting young adults. bmpl is kind of a win-win, it can help retailers sell more volume and can give consumers access to products they couldn't afford before sbmpl became more popular.

How do you think it would affect the spending habits of young people? Many of the messages in the ads are specifically aimed at younger consumers and try to change the consumer's mindset a bit so that they feel like they can spend in a self-indulgent way. If you look at this website, they say things. like we know what you're thinking, you feel like you've tried hard enough to get a gift, this is a textbook license that's basically trying to tell you okay, you deserve to spend a lot of money because you've performed this virtuous behavior. The way they position themselves is by equating themselves with responsible spending, so they say if you use now,you pay later, you are spending responsibly or you are budgeting.

In a joint survey conducted by the Institute of Policy Studies and Talking Point, we found that for those who use buy now pay later or bnpl services. 7 in 10 say they now spend more each month and 6 in 10 cannot pay their monthly payments in full. foreign concerns about bnpl services to atomize is one of the biggest players in singapore's buy now pay later business. scene its target market Millennials and generation Z, the majority of our base is between 21 and 29 years old, which represents more than a quarter of our users, we have spoken to some experts and every time bmpl is mentioned people say oh, It's a bad thing you think your industry deserves this reputation.

I don't think we deserve that reputation, but then again, I'm part of the industry. We are working with other organizations who offer this. You know, we launched this code of conduct as we are a regulated organization. and that hopefully helps us build consumer trust in the U.S. is your service that encourages people to spend and spend as an organization when an individual can't pay us back the remaining two-thirds of the transaction, there's no way We make money as a company, so it's in our best interest to make sure the user can pay us back. We have to be quite controlled in terms of who we give our credit to.

Tomei has been very successful in that and we have a default rate, that is, people who cannot pay us back, which is actually well below the average of the industry. The percentage of users who have defaulted has decreased over time. I'm just wondering what the impact of a service like this is on my credit history; there is no current impact but I think younger users need to be aware that we don't want to create that habit of overextending just because there is no impact on your credit history at the moment you have said you don't want young people to overextend too much, but that really conflicts with the messaging on your website that says, enjoy today, you know, live in the moment, how do you reconcile?

I don't necessarily think there is a conflict, the reason is that you can enjoy and appreciate what you want now and be within your means to do so. I don't think it's necessarily a mixed message, a code of conduct for bmpl providers. Implemented late last year, it is not mandatory, although providers will have to comply to gain accreditation under the code. All charges remain, including late fees, users cannot owe bmpl company more than two thousand dollars at any given time unless they approve additional credit. evaluation and if they miss a payment their account with that provider will be suspended, but there is nothing stopping them from using multiple providers at this time and it is not yet clear how this could affect their long-term credit history.

Honestly, no, I have plans to move abroad. I'll be able to be comfortable there for a lot less during my parents' time. His house costs about 150,000. But my fiancé's house has already doubled: 300,000. Talk about people saying why. Not just cutting your expenses, but that's not my priority right now, it's the different ways people live, so yes, I'll take taxis, but I can eat Hawker food like most days as a mother. Naturally, I'm worried about what my three children's lives will look like after they enter the workforce and start earning their own money as things become more expensive and lines of credit become more accessible.

This generation of young people is possibly at greater risk of falling into debt compared to previous generations. I guess that's all I can do. Now it is to continue educating my three children about the risks of spending beyond their means, thank you