Covid-19 triggers Singapore millennials to prepare for their Financial Future in New Ways, says Standard Chartered
There is no group more impacted by the Covid-19 pandemic than the millennials. It has galvanised this generation to be more careful with how they manage their money to better prepare for their financial future, according to Standard Chartered’s latest global survey.
The study of 12,000 adults across 12 markets – Hong Kong, India, Indonesia, Kenya, Mainland China, Malaysia, Pakistan, Singapore, Taiwan, UAE, the UK and the US – is the third in a three-part series, looking at how Covid-19 has transformed consumers’ way of life, and what changes could be here to stay, Standard Chartered said in a press release.
While the first survey focused on the pandemic’s impact on earnings, and the second looked at changing spending habits, the final survey provides new insights into how the global health crisis has altered the way people are managing their money day-to-day, in pursuit of their long-term goals.
In Singapore, 62% of millennials have found managing their money day-to-day more difficult since the start of the Covid-19 outbreak, compared to 53% of those aged over 45. 27% of Singapore’s millennials also reported that their borrowing has increased in the last month, compared to 15% of those age over 45.
Despite these significant challenges, 38% of Singapore’s millennials are more confident that they can achieve their long-term financial goals than they were before the pandemic started. Across a plethora of financial goals, 45% Singapore’s millennials are saving more for retirement (compared to 44% of those over age 45), and 32% saving for a major purchase such as a new car or home (compared to 13% of those over age 45).
To meet these ambitions, Singapore’s millennials are looking to better track and budget their spending (41%); alter their daily spending (43%); and out of which, 24% have already started using a new money management or budgeting app since the pandemic begun.
In contrast, only 25% of those over age 45 in Singapore feel more confident they’ll reach their financial goals, with those over 55 the least confident about achieving their financial goals since the Covid-19 outbreak began. When citing their biggest concern when it comes to reaching their financial goals, uncertainty around income is the most common worry across all generations.
Meanwhile, the pandemic has also made everyone more careful with their saving and spending and less likely to splurge. When asked what they would do, if given the equivalent of £1,000 by their Government with no strings attached, the most common responses globally were to use the money to pay off debt, cover day-to-day expenses or save for the long-term. In Singapore, people were most likely to hold onto the money, keeping it in their bank account in case of emergency.
Dwaipayan Sadhu, Head of Retail Banking, Singapore, Standard Chartered, said: “Banks have a role to play in simplifying the saving and investment process to help consumers better visualise their financial goals and manage their money. This year, we have seen a boost in the usage of SC Money Manager, our personalised financial management tool, since it was launched in September. One out of two of our SC Mobile banking users are actively using this tool and we expect this number to grow, as more consumers look to better track and budget their spending and alter the way they manage their money.”
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