Why Most Singaporeans Are in Debt

[shawnlim88]

Mawar:

Some of us are too generous with our kids. If we furbish them with the likes of iPhone, expensive haircuts and xx pocket money, they start off life at base 3. Not earning but already accustomed to a higher level of creature comfort.


One of my ex-colleagues was unable to settle into married life cos she had to downgrade. From nice house to flat, from free usage of family cars to one small Jap car, to having to spend on basic amenities when she was used to spending only on her wants etc. To tide her over, her mom sends the family helpers over a few times a week to help out, and to stock up her fridge.

The poor hubby tried really hard. Both were doing well in their respective careers but since they were starting out, she had major financial adjustment issues. Parents also assured them that if babies came, they would handle all expenses.

wah dunno if this is really fortunate or unfortunate for your ex-colleague.
hope it won't be a case of:
爱你变成害你！

[shawnlim88]

slmkhoo:

... We've continued to live simply and I hope my kids will do the same when they grow up and have their own homes.

dear slmkhoo,

can share what/how you teach your kids on money matters?

TIA
shawn

[Mychildren]

My answer: Credit cards


Know its a necessity for one who always need to fly oversea for work purpose.
If not, do avoid it.

I don't have any credit card since birth. Even there are invitation to apply one, I just throw those letters away. My DH wanted to give me a sub and I told him I don't need one. Prefer cash payment so I won't overspend.

[keroppi]

Interesting, mychildren. I am the exact opposite.


I use my credit card to pay whenever possible and chalk up on points to exchange for vouchers, eg Best Denki so I can replace some household items for free. But I never let my credit roll over and I foot my bills on time so using credit card in itself may not be a bad thing. You can always call the bank to lower the limit on your credit if you are afraid of overspending.

[MMM]

keroppi:

Interesting, mychildren. I am the exact opposite.


I use my credit card to pay whenever possible and chalk up on points to exchange for vouchers, eg Best Denki so I can replace some household items for free. But I never let my credit roll over and I foot my bills on time so using credit card in itself may not be a bad thing. You can always call the bank to lower the limit on your credit if you are afraid of overspending.

Yes it's true and sometimes certain card have promotion and hence you get more discount when you used those cards. I use my credit card all the time. Key thing is not to let the bill roll over. Always ensure you settle it every month.

[sleepy]

MMM:

keroppi:

Interesting, mychildren. I am the exact opposite.


I use my credit card to pay whenever possible and chalk up on points to exchange for vouchers, eg Best Denki so I can replace some household items for free. But I never let my credit roll over and I foot my bills on time so using credit card in itself may not be a bad thing. You can always call the bank to lower the limit on your credit if you are afraid of overspending.

Yes it's true and sometimes certain card have promotion and hence you get more discount when you used those cards. I use my credit card all the time. Key thing is not to let the bill roll over. Always ensure you settle it every month.

Yes, me too. Plenty of credit cards to make the most out of banks' promotion. For instance, some banks give cash rebate eg. Maybank 5% rebate at NTUC & Popular, Standard Chartered give 2% rebate on their debit cards (for those who are worried about credit cards)

I've never and won't overspend la, just treat credit cards like 'cash', got to settle bill eventually anyway. Key is to settle bill in full each month

[Mychildren]

No worries, to be different.

Everything can be useful if use properly and likewise the other way round.

(Its only because I saw my ex-colleague got into trouble because of credit cards.)

[Mawar]

But how can we be debt free? We need to pay our mortgage and car loan. With growing kids and 2 sets of aging parents to support, we are really stretched. Luckily education is affordable. We are glad that we are able to take care of our parents, but we live in fear of unexpected medical bills. That will eat into our disposable income, and will surely cripple us. Maybe need to look for Ah Long.

[Funz]

My staff showed me an article in the chinese papers. No idea if it is recent or old papers. And as my chinese cmi, she read it for me.


Couple with 5 school going kids and another on the way. Household income $1800. Utilities takes up to about $300/mth, groceries about $450/mth. Birthdays are celebrated at home with a small cake, they buy a set of toy and all 5 kids will share the toys. And they still manage to have some savings.

This family is rather amazing.

[Imp75]

and the strange thing in Spore is that only the lower income group is procreating but not the higher income group. Maybe different expectations in life hiaz!