By Fan Chen Keat, Lecturer, Centre for American Education, INTI International College Subang
Students from Centre for American Education attended a Guest Lecture on Empowering Young Minds for Good Money Management conducted by Mr. Rumi Yeo, Certified Financial Coach, on 21 June.
Mr. Yeo stressed the importance of individuals having financial freedom instead of being trapped in financial doom. He informed the participants that Malaysia’s bankruptcy threshold is currently set at RM100,000 and individuals declared bankrupt would be subjected to various restrictions.
Even individuals with high incomes may end up with low or negative savings if they spend excessively, many times exceeding their income.
Some of the poor spending habits discussed were:
- (a) Instant gratification, instead of saving for emergencies.
- (b) Buy now, pay later (BNPL), which leads to immediate enjoyment but later suffering.
- (c) Follow the Joneses in a buying spree instead of living within one’s means.
Rumi shared the formula A.S.K, an acronym for Attitude, Skills, and Knowledge.
A good attitude to cultivate is paying oneself first by setting aside a portion of the income for savings and then spending the remaining amount. This enables individuals to build up a savings pool and maintain discipline in controlling their spending. The power of compounding interest ensures that savings accumulate promptly.
Furthermore, individuals should improve their skills and knowledge in good money management, enabling them to invest in worthwhile ventures rather than get-rich-quick schemes. Rumi demonstrated that a saving of 1 cent that doubles in value every day would amount to over RM5.368 million after 30 days.
Senior Lecturer Alison Chiu presented a token of appreciation to Rumi. Other INTI lecturers present at the event were Dr. Kew Wen Chang, Kathleen Lee, and Fan Chen Keat.
Equipped with tips on cultivating a positive attitude and building skills and knowledge, the students left the Guest Lecture, ready to practice good money management.