Youth Preparing for Work
Just graduated and starting your career
Review your various payments and categorize them into fixed and variable expenses.
Fixed expenses
Recurring costs that remain relatively constant each month. Examples include phone bills, insurance premiums, subscriptions etc.
Variable expenses
Expenses that fluctuate based on usage or activity levels. These can include shopping, entertainment, and transportation.
To gain a clearer understanding of your spending habits, track your expenses for a month or two. While it may be challenging the first time you do this, it’s largely a one-time effort.
Rank your debts based on their interest rates. This will help you decide which ones to focus on paying down first.
High-interest debt such as credit card balances or personal loans should be a top priority. These can grow quickly if left unpaid.
Lower-interest debt such as student loans may not need your immediate attention, but it’s still important to continue regular payments.
Whenever possible, use extra money, like from an allowance or a part-time job, to pay down the debt with the highest interest rate. Click here to read our OwlRubrics: Strategy to Reduce Debt.
Learn about common money mistakes to avoid those pitfalls. Be more aware of the long-term consequences of poor financial habits so you can make more informed decisions such as budgeting, saving for emergencies, and investing with caution.
Click below to learn about the 5 common money mistakes that 20-year-olds make.
Set a savings, investment, or debt repayment target. If you have a job, saving 15% of gross salary (in addition to CPF contributions) is recommended.
Review your current spending to identify non-essential expenses, like streaming services or dining out, that you can reduce. This approach helps you live within your means and prioritize your future financial goals.
Click here to read our OwlRubrics: Pay Myself First, and More Each Year.
Optional Steps
Find out from your parents what insurance coverage you already have and get a list of the policies so you know what’s covered.
Before buying any insurance, take the time to learn about it and figure out what you really need. It’s important to understand your options first rather than rushing into decisions.
Start by learning the basics of investing.
Understand the different asset types (stocks, bonds, etc.) and how they perform in different market conditions.
Educate yourself on common investment terms like diversification, risk, and returns.
Invest in a suitable portfolio. Caution! You need to be financially healthy, with the right time horizon and risk appetite.
Avoid jumping into investments without fully understanding them. Take time to learn, ask questions, and consult reliable sources or professionals if needed.
Understand how markets work and how to invest wisely without stress.
Learn continuously:
Read up reputable financial websites or books to deepen your knowledge.
Start small to get a feel for how investing works without risking too much money upfront.
Consider using tools like robo-advisors or investment platforms that guide beginners in creating portfolios based on their goals and risk tolerance.
Click below to visit our investment page, where you can explore our investment solutions and use our risk profiling tool for personalized portfolio recommendations.
Understand the basics
Begin by reading up on what CPF is and how it works. You can visit the ‘Educational Resources’ section on the CPF website to learn about CPF, financial planning, and more through their articles, videos, and podcasts.
Explore the uses of each account:
The Ordinary Account (OA) can be used for housing, education, and investments.
The Special Account (SA) is mainly for retirement and earns a higher interest rate.
The MediSave Account (MA) helps cover medical expenses and health insurance premiums.
Know the CPF contribution rate:
Find out how much of your salary goes into CPF and how it’s allocated among the three accounts. Understanding this will help you see how CPF affects your take-home pay and builds your savings over time.
Learn about CPF for retirement:
Explore how CPF supports your retirement with payouts from CPF LIFE, and how you can grow your retirement savings by topping up your Special Account or using other schemes
Click below and get directed to CPF site to learn about the basics of CPF.
Here are some effective ways to enhance your financial literacy and make informed decisions about your finances:
Attend workshops or courses:
Many organisations, such as the Institute for Financial Literacy and MoneyOwl, offer free workshops or courses on personal finance. Click here to find out more about MoneyOwl’s upcoming courses and events.
Consult professionals:
Consider speaking to a financial planner or adviser to learn about different financial planning methods. Consultations are typically free, and there’s no obligation to buy any products. This can help you gain valuable insights into managing your finances and making informed decisions for your future.
Learn from trusted sources:
Follow reputable Singapore-based financial platforms like Seedly, DollarsAndSense, or government websites like CPF Board and MoneySense.
Click here to find out more about MoneyOwl’s upcoming courses and events.
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