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

Summary

The video script explores the financial struggles of young adults in Singapore amidst rising living costs. It delves into their spending habits, the impact of inflation, and the prevalence of credit and 'buy now pay later' services. The script features interviews with millennials discussing their financial challenges, including increased grocery bills, rent, and social expenses. It also touches on the potential risks of easy credit access and the importance of financial literacy in navigating economic pressures.

Takeaways

• 📈 Inflation has spiked in recent years, with Singapore experiencing its highest rate in nearly 14 years at 7% in 2022.
• 💸 The rising cost of living is causing financial stress among young adults, with 6 in 10 worrying they will not meet their financial goals.
• 🚗 Millennials in Singapore spend around SGD 100 per outing for dinner and drinks, indicating a continued social life despite financial pressures.
• 🏡 Housing costs have significantly increased; what once cost SGD 150,000 now costs SGD 300,000, affecting young adults' ability to save and invest.
• 🚖 The convenience of ride-hailing services like Grab is integrated into millennials' lifestyles, with some spending up to SGD 800 a month on transportation.
• 🛒 The use of buy now pay later (BNPL) services has surged, increasing transactions from SGD 114 million in 2020 to SGD 440 million in 2021.
• 💳 Credit card usage is common among young adults, with 3 in 10 relying on credit to cope with living expenses, potentially leading to unsustainable debt levels.
• 🏦 Many young adults are living paycheck to paycheck, with some spending more than they earn and struggling to save, indicating a lack of financial planning.
• 🛍️ Peer pressure and online marketing are driving unnecessary spending, with some young adults feeling the need to keep up with the latest products and trends.
• 🔄 The accessibility of credit and BNPL services is making it easier for young adults to fall into debt, with experts warning of the risks of overextending credit.
• 🏘️ The cost of necessities like groceries and rent is increasing, forcing young adults to make tough choices between socializing, saving, and meeting basic needs.

Q & A

What is the impact of rising costs on the daily life of young adults in Singapore?

The rising costs have led to an increase in the cost of living, with young adults experiencing higher expenses on groceries, transportation, and dining out. Some have to adjust their lifestyle, such as eating at home more often or looking for discounts when dining out.

How much has the grocery bill increased for the interviewee?

The interviewee's grocery bill has increased by 20 percent.

What is the approximate increase in rent that the interviewee is expecting?

The interviewee is expecting a rent increase of about 15 percent, which translates to around 300 Singapore dollars.

How often do millennials go out to socialize according to the script?

Millennials mentioned in the script go out to socialize weekly or every other week.

What is the average amount spent by millennials per outing on dinner and drinks?

The average amount spent by millennials per outing on dinner and drinks is about 100 Singapore dollars.

What is the typical monthly expenditure on transportation using private hire cars for the interviewee?

The interviewee used to spend around 700 to 800 Singapore dollars a month on private hire cars, but is trying to cut down.

What percentage of income does Joey try to save?

Joey tries to save about 20 percent of her income.

What was the reason Joey had to dip into her savings?

Joey had to use her savings because her dog fell sick.

How much does Joey spend on groceries and other daily necessities?

Joey spends up to 3,000 Singapore dollars a month on groceries and other daily necessities.

What is the current inflation rate in Singapore as mentioned in the script?

The inflation rate in Singapore hit 7 percent in 2022, the highest in almost 14 years.

What are the factors contributing to inflation in Singapore according to the script?

Factors contributing to inflation in Singapore include the war in Ukraine, supply shocks, and government support measures such as the发放的CDC vouchers.

What percentage of young adults are worried about meeting their financial goals due to rising costs?

Six in ten young adults in the U.S. are worried they will never meet their financial goals due to the rising costs of living.