Here’s why we urgently need to teach the younger generation how to manage money: In 2019, almost half of Malaysian households were in debt, with over two-thirds of bankrupt borrowers between the age of 25 and 34. － Filepic/The Star
Meanwhile, I was encouraging the mother of a nine-year-old to get a debit card for her daughter. Because clearly the way to teach a child how to be financially responsible is by showing them how easy it can be to spend money.... Perhaps we should put the blame on Bank Negara Malaysia. After all, it allows banks to issue credit cards and for people to take on debt. In fact, you may be surprised that a bank in Malaysia can offer a credit card to children . This particular bank offers the card under the parent’s name and allows them to let the child use it. The card can be used at any location that accepts Visa cards, and every time it is used, the parent gets a notification on their handphone.
Getting people used to managing money from as young as possible is a good idea, I think. The Malaysian National Strategy for Financial Literacy 2019-2023 lists this as one of its recommendations. It also reports that one in three Malaysians rate themselves to be low in financial knowledge. Even worse, three in 10 working adults need to borrow money to buy essential goods.
The good news is that many countries around the world have set up trials with UBI, and the conclusion of many studies is that it improves happiness and health .