What Do Singaporean Millennials Actually Do With Their Ang Bao Money?
Chinese New Year is around the corner again, and that means being bombarded with festive songs at every shopping mall, and once again, bombarded by nosy relatives during house visits.
For the recently married ones among us, Chinese New Year is going to be quite different. You’ll have to think about packing ang bao for the little ones, and you no longer will receive ang bao from your relatives.
But for those who still haven’t said their vows, treasure this time, as it’s that time of the year when you get a little boost to your bank account.
The instance of getting a red packet decreases with each year (children have it easier when it comes to things like these), but hey, ‘free’ money is always good – regardless of amount.
And it’s not just for Chinese millennials, Malay Singaporeans also get duit raya, albeit the benefit only lasting until you’re employed.
What do Singaporean millennials do with the money they receive during these festivities though? Do they spend it all because “it’s not their money anyway”, or do they save it up for rainy days?
I did a quick poll and tried to find out more about their spending habits.
Most Don’t Have An Immediate Idea Of What To Do With The Money
Out of 53 respondents on the poll, more than half (50.9%) of them were from the 26-29 age group, and the second largest group (34%) were 22-25.
We seemed to have gotten a lucky bunch of respondents too, with close to half getting more than $200 during the festive periods!
A majority of respondents (56.6%) also seem to treat the additional cash as a bonus, and chose the “keep until you find a use for it” option over thinking of what to spend the money on, or saving it immediately.
When asked about what they spent the money on, the more popular options were (not surprisingly) fashion and food, followed by travel – again, no surprises here.
But while it’s easy to spend money (especially when it’s not hard-earned), it was in the next question that I saw where their priorities lay.
A majority (37%) saved the money for future plans, such as for wedding-related expenses and getting a house, possibly some of the biggest ticket items in Singapore.
Well, with the need to dish out at least $38,000 for a wedding, and over $400,000 for a 4-room BTO flat, the cost of settling down here is enough to set millennials back for years!
To be honest, as I got older and more aware of the expenditures that are set to come my way, I kind of regret spending my ang bao money on whims.
Don’t Regret What You Spent On, Save What You Have Now
Of course, it’s impossible to get back whatever’s spent, but that doesn’t mean that you can’t save on and maximise what you have either.
There are many ways to maximise your spending, and these can come in the form of rebates from credit cards.
That’s of course, if you know which credit card rewards you best when it comes to your spending habits.
Once you’ve decided whether you’re more of a cashback person or a miles/points person, you can choose the appropriate mix of credit cards.
Let’s say you’d like to accumulate miles on your credit card to travel better for less.
If majority of your spending is on fashion, food and online travel bookings, you’d want to be getting several credit cards to maximise your miles earned per dollar spent.
A possible strategy is to have these cards in your wallet:
Citi Rewards Card (4 miles/dollar on fashion)
HSBC Revolution Card (2 miles/dollar on local dining and online transactions)
Citi PremierMiles Visa Card (1.2 miles/dollar on everything and 2 miles/dollar on overseas spends)
The good thing with cards that earn you miles or points is that there’s usually no minimum spends to meet each month.
This means you get to use the credit card that works best for the situation, and not worry about spending a certain amount each month.
There’s No Lack of Finance-Related Resources
With so many finance-related websites popping up everywhere, there’s no logical reason as to why one is clueless about how to handle one’s finances and plan for the future.
Websites like BankBazaar.sg also go beyond just providing consumers useful information – it also helps to expedite the usually tedious and stressful process of getting credit cards and loans.
So if you’re looking to move on to the next phase of your life, or if you’re simply looking to maximise your finances, check out BankBazaar.sg today!
This article was written in collaboration with BankBazaar.sg.