I REFER to the letter, "Children need to learn financial planning" (my paper, Dec 17).

I share the concerns raised by the writer, especially regarding the possibility of Singapore becoming a nation of debtors.

One needs to know that there is a huge difference between necessities and wants.

For instance, having a roof over one's head, food, children's education, health care and transport are basic needs.

Take the case of a married man who is the sole breadwinner with a decent income and two kids.

He can afford to purchase at most a four-room HDB flat, but decides to go for a bigger one.

He would be drawn into a huge debt and face problems servicing the mortgage, on top of the other fixed expenditures and financial obligations.

As highlighted in recent media reports, the number of bad debts which arise from such spending is rising in Singapore, and more young people are going bankrupt.

Children mostly imitate what adults do, especially their parents.

Parents and youths should practise good spending habits and exercise great financial care so as to be excellent role models to their young charges.

As stated by the writer, more people are spending beyond their means and working just to repay their debts.

Let's take some time to ponder over whether one would rather live in constant fear of being hounded by creditors or live peacefully and happily, content with what one already has.

Mr Muhammad Dzul Azhan Haji Sahban

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