“My Money and Me”- a Financial Knowledge awareness campaign which will be rolled out nationwide in conjunction with the Global Money Week 2021 campaign (March 22-28). This awareness campaign is organised by the OECD International Network on Financial Education with the theme “Take care of yourself, Take care of your money.”
The theme of the campaign “Take care of yourself, Take care of your money“, clearly pointed out the fact that everyone of us need to take care of ourselves by taking care of our money. In the way, it means, when we take care of our money, the money will take care of us, when we are in need.
From the statistics of Bankruptcy in Malaysia 2019, it shows that 35% (the highest percentage) of Malaysian bankruptcy are comprises of them age between 35 to 44, follow by 25.29% (age between 45 to 54) and 25.18% (age between 25 to 34). This is an alarming statistics for us to realise that the age group is young.
Source : Malaysia Department of Insolvency 2019 – http://www.mdi.gov.my/index.php/legislation/bankruptcy/1548-bankruptcy-statistic-disember-2019
As we look at this alarming statistics, we cant help but start thinking why and how did Malaysians at such young age get into debts? Then we look at the reasons of bankruptcy per below chart :
From the chart, it shows that 32.07% (which is the highest statistics) of the declared bankruptcy is due to Personal Loan., follow by Hire Purchase (Car Loan) at 21.53%, Mortgage (Home Loan) at 12.57%, Business Loan at 10.15% and Credit Card debts at 10% and so on.
Then, there goes the next question, why would our millennials and young generations go for Personal Loan? Well, there are various reasons which include taking up loans to pay off study loans, to get married, to pay off credit cards etc…. and the issue of creating more debts from one loan to more loans just does not solve the problem which ultimately falls back to the root cause of lacking the knowledge in Financial Planning and Financial Management.
As quoted,
“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey
No point working hard and making a lot of money, but not knowing how to manage it.
Thus, having the knowledge of Financial Management and Financial Planning is important. The earlier one learns about this, the better it is as it helps every adults to start managing its first salary. It is about having good financial management discipline, practice the good habit consistently, be committed and keep monitoring regularly.
It is important for everyone to understand that the concept of Financial Planning is having a strategic way to plan, manage and monitor one’s income and expenses using a holistic way via a systematic planning manner. Financial Planning is NOT just about any insurance agent or unit trust agent coming to you with proposals for specific products and plans only.
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Reading Reference : https://www.theedgemarkets.com/article/financial-knowledge-planning-vital-preventing-bankruptcy-scams-%E2%80%94-tengku-zafrul