In a city where the cost of living continues to rise, young adults in Singapore are making increasingly deliberate choices about how they spend, save, and define financial indulgence. A recent survey conducted by The Straits Times and Kantar, involving 1,000 respondents aged 18 to 30, offers a comprehensive view of their monthly expenditures, spending motivations, and financial aspirations.
Monthly Expenditure: A Snapshot by Employment Status
The average monthly spending among young adults stands at approximately $1,486. However, this figure varies significantly depending on employment status:
| Employment Status | Average Monthly Spend |
|---|---|
| Full-time employees | $1,736 |
| Part-time employees | $782 |
| Full-time students | $772 |
These figures align closely with national data, which reported an average monthly household expenditure per person of $1,986 in 2023.
Spending Categories: Essentials vs. Discretionary
Among full-time employees, spending is distributed across several key categories:
- Food: 27%
- Necessities: 25%
- Transport: 15%
- Non-essentials: 15%
- Insurance: 14%
- Charitable donations: 4%
Part-time workers and students show similar patterns, though with tighter budgets and a greater emphasis on essentials.
What Constitutes a Splurge?
The definition of a “splurge” varies widely among individuals. For Ms Rennes Lee, a 30-year-old senior brand manager, a $40,000 renovation of her BTO flat was considered extravagant, despite being viewed as modest by others. Her reasoning stemmed from the operational demands and the choice to outsource rather than manage contractors herself.
Mr Lee Ci En, 28, an advertising strategist, considers a $100 restaurant meal a splurge, while Ms Syrius Liu, 31, a freelance life coach, spent $4,000 on a graduate diploma—her version of a luxury. At the higher end, Mr Danish Danial Tay, 31, spends $10,000 monthly due to car ownership and business expenses, while Mr Muhamad Iskandar, 28, defines a splurge as any item above $200, including a flight to Sabah.
Students also indulge occasionally. Ms Nurin Qaisara, 19, spends on skincare and fashion as mood enhancers, while Mr Victor Tan, 21, saved up for a $650 PlayStation 5, viewing it as a source of joy rather than necessity.
Sources of Financial Advice
Young adults rely on a diverse mix of financial guidance:
- Friends and family
- Financial influencers on social media
- Blogs such as The Woke Salaryman
- Government platforms like MoneySense
- Books including Unshakeable and The Richest Man in Babylon
University students also benefit from finance clubs and academic resources, while working professionals often consult peers and financial advisers.
Expert Recommendations: Saving, Investing, and Insurance
Financial experts from DBS, OCBC, and UOB offer the following guidance:
- Save at least 10–20% of take-home pay
- Build an emergency fund covering 3–6 months of expenses
- Invest 10% of income, starting with low-risk instruments like Singapore Savings Bonds
- Limit insurance premiums to 10–15% of annual salary
They also recommend using expense tracking tools, automating savings, and imposing a “cooling-off” period before non-essential purchases.
Conclusion
Young adults in Singapore are navigating a complex financial landscape shaped by rising costs, evolving priorities, and diverse definitions of value. Whether it’s a $15,000 exchange program or a $100 Lego set, their spending choices reflect not just financial realities but personal aspirations and lifestyle philosophies. As they continue to balance ambition with prudence, their habits offer valuable insights into the future of financial decision-making in urban Asia.
