September 15, 2025
SINGAPORE – Ask young workers what they are currently saving their monthly salaries for, and chances are many of them will say it is for their overseas holidays.
In a recent survey commissioned by The Straits Times on the financial habits of those 30 and under, about 57 per cent of young full-time employees said saving for travel and leisure would be their top financial goal.
The number is a percentage point higher than the 56 per cent who listed saving for their first home as a financial priority.
As the survey participants, who were polled by market research firm Kantar, have just embarked on their careers for a few years, it is not surprising that only 31 per cent listed retirement planning as a goal as they are likely to care more about doing well in their career than retiring.
If you think the financial priorities of young people are quite the opposite of their parents who had focused more on material gains, you are not wrong, partly because many of today’s young adults grew up in households that were not lacking in necessities.
This probably explains why 24 per cent of young workers even said that spending on their pets is one of their financial obligations.
Setting aside part of their monthly income to take care of pets probably never crossed the minds of many of their parents in their younger days.
Even if they had kept pets, these would most likely be non-pedigree cats and dogs that were obtained free from friends or relatives. And upkeep costs were probably minimal because these pets would likely eat leftovers from family meals.
Experiences matter more
The survey found that young adults here appear to prioritise experiences – such as dining, entertainment and travel – over material goods like premium gadgets or high-street fashion.
This preference suggests a generational shift in values, where emotional enrichment, personal fulfilment and shared memories are seen as more rewarding than tangible possessions, such as cars, condominium units or country clubs that their parents valued.
Not surprisingly, young workers are likely to spend a fixed sum of their income on overseas holidays annually because this is one of their top three non-essential expenses. So they are likely to splurge on luxury resorts, premium hotels and adventure-based experiences.
The survey also found they are likely to spend on shopping, movies, concerts, staycations, visits to local attractions and entertainment platforms like Netflix or fitness clubs.
Keep tabs on expenses
There is nothing wrong with spending your hard-earned money to make yourself happy, so long as you do so within your means.
This is because overspending is the top reason why people end up in debt, especially when they make use of credit cards to pay for expenses that they cannot afford.
Often, people do not have a good sense of their monthly expenses because they do not keep track of the outflow of their money.
You can do so by keeping receipts of purchases and making notes of other payments that are done with cash or digital apps to ensure that you are spending way below what you earn every month.
If you are spending close to your monthly income, or worse, more because you have been dipping into your savings, it’s time to slash the non-essential expenses.
Save ‘emergency fund’ with CPF
Young couples who use CPF to pay the mortgage on their homes should consider using more cash instead so that they can start building a strong personal reserve.
By using more cash to pay the mortgage, their monthly contributions will accumulate in the Ordinary Account, which earns 2.5 per cent interest – more than the fixed deposit rates in banks now.
Doing so will also make you more mindful of your spending, since you would have less cash to spend after paying the mortgage.
If you are short on funds due to unexpected expenses, you can easily tap your CPF again to pay the mortgage.
Ultimately, it is about making informed choices on your spending, and saving to ensure you will always have enough money for all your expenses.
Check out Invest editor Tan Ooi Boon’s new book – Retire With More Money – at stbooks.sg