It would not be surprising that all of us know the benefits of saving. Nevertheless, only 67% of people take saving as a regular habit, as stated in a recent survey. If you are curious about this, make sure to read on and find out the answer in this blog!
A guerrilla research was done to interview different youngsters on their usual money managing traits, ranging from university students to fresh grads. Surprisingly, nearly all interviewees save on a regular basis, the only concern is that their saving amount is way below than the average amount mentioned in the survey above. Youngsters habitually save HK$2,000 to HK$4,000 into their bank accounts, or anywhere safe and sound. On the other hand, their saving methods could be further divided into 4 categories - “Forced”, “Frugality”, “Budget” and “Invest” types.
The “Forced” type requires the highest level of self-control, as this method is equivalent to “reducing spending at source”. “Frugality” users allocate a fixed amount of their salary to be placed in their piggy banks, that ensures a sufficient income being generated every month. The “Budget” type of people would make good use of budgeting apps, to limit their spending and set customized financial goals. Last but not least, “Invest”-ors are well aware of the fact that investment is the key to success, as the interest rate earned is significantly lower if they place the money in the bank.
Of course, investing in stocks has always been the hottest option. There are numerous ways and methods in the market to look out for, but the entry barrier is usually higher. Assume that investors are purchasing HSBC stocks for HK$40, they would have to pay HK$16,000 in total as the board lot required is 400 shares. Consider the demanding entry barrier plus high brokerage fees, youngsters are definitely facing investment constraints.
To bridge the gap in the market, there are some pioneering startups that hope to tackle this problem through forging a brand new money-managing-market for young people. Now you may wonder how the app works - basically it blends people’s love towards spending, together with the fear of investing. After spending at participating merchants, users are able to earn loyalty points for gold redemption. They can feel free to safekeep the gold over the long term, or simply cash it out and receive the payment through FPS. Besides, they can as well opt for a monthly gold purchasing plan, starting from HK$250. This undoubtedly helps them build a healthy-wealth-gaining-habit.
The spend & earn app eases your gold transactions without having users to pour in extra money. Through connecting merchants, loyalty programmes, banks and financial institutions, users could just grab-points-and-go. This prevents us from overspending whilst discovering hidden assets in daily life. Most importantly, the app truly focuses on our needs and walks us through our financial journey.
Money should not be something to worry about, we should all go for the plan that truly suits our financial and personal goals. I hope you will find this blog useful, in terms of comparing and selecting between different options!