Report on the Survey of Financial Behaviours and Financial Habits of Young Workers

In a Survey of Financial Behaviors and Financial Habits of Young Workers carried out by the Consumer Research and Resource Centre, 2 key findings were:

1.    47% of young workers were in serious debt that is their monthly debt payments were 30% or more of their gross income.

2.    37% lived beyond their means.

In relation to their Behaviors and Habits other important findings were:

3.    15% had no savings.

4.    If they stopped working, the consumer had enough savings on an average for only 4 months.

5.    Average purchase made on credit card per month is RM 702.

6.    37% had never thought of retirement.

7.    60% of those who had thought about retirement were not satisfied or only somewhat satisfied with their preparations.

8.    On the issue of financial knowledge, on a score of 1 to 6 (1 – strong financial knowledge and 6 having no financial knowledge), 43% scored 4 and above that is they felt that they had poor financial knowledge.

9.    Generally people rated themselves poorly in managing their money (mean score of 2.75 on a scale of 1 to 4 with 4 being poor knowledge).

This study was conducted on behalf of Era Consumer.  The Survey was one of the components in the Stretching Your Ringgit Financial Education Program funded by Citi Foundation.

To address these issues of poor financial management among young executives, FOMCA has proposed to the Government to form a National Financial Education Commission to integrate and coordinate financial education for all sectors, including schools, young workers, community and families.

Financial education can contribute to consumer well-being by helping them to better manage their finances as well as become better informed about financial products and services. Becoming financially better informed involves first acquiring information, that is, determining where to find information and getting hold of it and second, processing this information, that is, using the information to make better decisions.

Kimberly Palmer, On Monday June 13, 2011, 2:29 pm EDT

Last week's security breach at Citibank was just the latest in a string of incidents that have rattled consumers: Sony, Lockheed Martin, and iTunes are also among recent high-profile targets. With such big names falling victim to hackers, is it still safe to bank online?

The answer, according to top security experts, is a qualified "yes." Using the Internet to bank, buy music, or shop is still as safe or safer than visiting brick-and-mortar locations, as long as consumers take precautions and know what to do if they notice any suspicious activity. In fact, the overall trend is a reassuring one: 2010 actually saw fewer records breached than the previous year due to new infrastructure in place, says Julie Conroy McNelley, senior fraud and risk analyst at research firm Aite Group. Today, she adds, "banks have some of the most sophisticated mechanisms in place."

Posted by Emily Rauhala Wednesday, June 1, 2011 at 10:31 am

Julian Cribb's The Coming Famine opens in Hokkaido, Japan, at a meeting of the G8. It's 2008, the financial crisis is underway and food prices are soaring. Nonetheless, the attendees tuck into an eighteen course feast of caviar, sea urchin roe, Kyoto beef, conger eels, truffles and champagne, prepared by some sixty chefs. They also release a statement: "We are deeply concerned that the steep rise in global food prices coupled with availability problems in a number of developing countries is threatening global food security."

By Lori Bongiorno and Sarah B. Weir