Learning the value of information

I USED to roll my eyes whenever I heard cliched phrases from my father, such as 'save money for a rainy day'.

Then came Sept 16, 2008, a day I will remember for the rest of my life. That was when we learnt that Lehman Brothers had collapsed, and it did not take long for markets around the world to panic.

My father had invested a six-figure sum in unit trusts whose value tumbled overnight, no thanks to panic selling. The paper loss was petrifying - more than 50 per cent was wiped out.

Suddenly, our regular middle-class family of five faced a very real threat of downgrading from private to public housing.

The fear and helplessness I felt during the following months were reflected in my grades - they dropped from Bs to Ds.

My father took a calculated risk and held on to the unit trusts. Fortunately, they have regained most of their value today, and we intend to pull out soon.

But I will never look at banks and financial products with the same naivete again.

Like so many other investors, my family did not take much interest in the fine print. Instead, we were won over by a brokerage firm that was very convincing when selling us the products.

I am grateful for this recession for it has taught me not only humility and thrift but, most importantly, the value of information. From now on, I will educate myself about personal finance and investment.

Geran Wong, 19, is a Pre-U Year 3 arts student at Millennia Institute.

No longer naive and sheltered

THE recession hit my family right after my A levels last year.

Many of my peers looked for jobs during that long, eight-month break before we headed off for further studies. Some did it purely for extra pocket money, but others like me did so to help our families.

My father has not had a job since the last recession in 1997, while this latest crisis ate up our family savings because of the poor stock market.

Fortunately, I was given a relief teaching stint at my alma mater, Meridian Junior College, right up to my first week of university.

While my work left me with no real 'holiday', I have no regrets or complaints. The value of independence and the experiences I gained from the working world opened my eyes and shut out the naive, sheltered girl in me.

Christel Quek, 19, is a first-year geography major at the National University of Singapore.

Spending within my means

RECESSION or not, I am cushioned from economic ups and downs because I hail from a middle-class family with my basic needs provided for.

My monthly allowance has not been docked. I am not facing any hiring freezes as I'm still under contract with Nanyang Technological University - as a full-time undergraduate - until May next year.

If anything, this recession has allowed me to become my own financial consultant. I devise ways to earn quick cash, offering English tuition and freelance writing.

I also immerse myself in low-cost, feel-good activities like running and dancing. I do not shop unless out of convenience, like waiting for a friend to turn up or running errands at the supermarket.

There are anomalies, of course. Two weeks ago, I went to Kuala Lumpur with my parents and indulged in cheesecakes at Secret Recipe. A week later, I chalked up $70 on clothes as it was my birthday week.

I can't afford Le Cordon Bleu cookery classes at the moment, but what's a little spending within our means, as long as we feel good about it?

Estelle Low, 22, is a final-year journalism student at Nanyang Technological University.

Youth must be financially literate

I WAS relatively lucky to be unaffected by the financial turmoil, thanks to my parents' strict upbringing. I was exposed to good financial habits, such as maintaining a strict savings account and spending within my means, from a young age.

I feel a sound framework in financial literacy is essential for the youth of today. Most of my junior college peers did not experience the hardships of earning money, and struggled to sustain their extravagant lifestyles when the crisis struck.

While we bury our heads in books to further our education, we also need to learn financial street smarts. Let's not wait until we get a business degree to teach us that - start young in the primary schools.

With hindsight, I truly appreciate my secondary school principal's efforts in inviting speakers from Merrill Lynch to give us an intensive course on financial literacy.

Initially, I thought it would be silly to listen to lectures on capital markets, wealth management and debt. Such issues seemed foreign, distant and irrelevant. Never did I imagine that these lessons could follow us for a lifetime.

Nicholas Lim, 20, has a place to read business at NTU.

Belt-tightening bonds family

IN RESPONSE to tough times, my middle-class family had no choice but to tighten belts.

I still feel uneasy whenever I top up my ez-link card. After all, I do not get much allowance in national service, and I try to cut down even on transport expenses. The savings are not significant, but they go some way towards paying for my future university fees.

My parents now make it a habit to purchase cheaper foodstuffs and household items. We hardly go for movies anymore - we hold late-night movie screenings at home, saving on expensive popcorn and drinks too.

Instead of buying the latest bestsellers at the bookstore, I prefer to borrow them from the library. I buy books only if they are important to my future field of study.

I even observe strict curfews on using the computer now to cut down on Internet and electricity bills.

Some good has come out of these austerity measures: Before the downturn, my family and I often ate out at food centres since cooking was such a chore.

Now, home-cooked meals are the norm and I relish precious family time spent together in the midst of hard times.

Jonathan Liautrakul, 19, has a place to read arts and social sciences at NUS.

This article was first published in The Straits Times.