According to Credit Counselling and Debt Management Agency (AKPK) corporate affairs and communication head Devinder Singh, more than 15% of the 39,600 people enrolled in its debt management programme are below the age of 30 (http://thestar.com.my/news/story.asp?file=/2010/7/19/nation/6690491&sec=nation, July 19, 2010). He said that when young adults do not understand the basics in financial management, they lose track of their finances. Against this backdrop where financial education is such a necessity in the lives of Malaysians, especially young adults, Carol Yip, a financial coach and trainer posed a question which is, "Why is it that managing your money is not a module for primary and secondary school students?" She said,"Early training will teach children and young adults the wisdom of saving, and not to overspend beyond their means."
Taking things in her stride to do her bit for the community, and in this case, the deaf community, she collaborated with Perbadanan Insurans Deposit Malaysia (PIDM), to organise a workshop on "Be Money Smart and Career Wise" at KDU University College, Section 13 campus on June 24, 2011.
The author of several books, including MONEY RULES, Carol Yip shared with the deaf participants on how they could avoid the trap of debt, and to be financially independent.
Using the PIDM online game at the computer lab, Carol said, ‘Treat this game as real as possible. Think and ask questions because life is also a game. Think of it as a real life experience where there can be a negative cash flow in your bank account if there is continuous spending without investment or a good return of investment. This is a game to help you to understand about spending and saving.”
The online game was a reinforcement of the message that Carol was imparting on personal wealth management skills. Said Selina Ooi, one of the participants, “I’ve played many online games but I’ve never played one like this where it is so relevant to people’s lives.”
Selina Ooi (right) with Carol
Carol applied chapters 8 and 9 from her book MONEY WORK LIFE for some practical exercises which gave some ideas and knowledge on the different types of investment products. Facilitating with Carol were her friends, Sanny Lau, Melinda U, Felicia Loh, Jonah Ong and Lucy Lim. Felicia, an art teacher and a freelance artist, used her vision board to chart her goals. She explained the power of the vision board which could help children and others to create dreams, positively. Some of her personal dreams were “Travel Dreams”, “Solo Exhibition”, “Art Gallery”, “Never Give Up” and “Save $$ to meet Idol”. These are Felicia’s dreams.
Felicia Loh's vision boards
The participants proudly displayed their vision boards and their goals
What about yours? Can you achieve them? You could start by sourcing images of your dreams and putting them on the board that you could visualise everyday. At this workshop, every participant did just that, and in sign language, they presented their dreams. Ms Lucy Lim translated their presentations. So they may be deaf, but deaf is not a hindrance. They may have to exert a little more effort for their success, but taking time like attending this workshop has made them realise that setting goals, create savings and making wise investment are the keys to be financially independent.
Lucy Lim (right) interpreted at another workshop with Carol.
Another participant is Geja. Her goal now is to organise competitions for the deaf, have her own art exhibition, sell flowers, save her money and also to travel. The vision board has driven her to be more motivated towards achieving these goals.
Working on some wealth management exercises with a given formula, the participants discovered that to sustain their present lifestyle until the age of 55 when they retire, they would need to have an average of RM1.5million to RM5 million either in cash, bank deposit or assets. And, they discovered to their shock, this does not include the financial needs of their families. How then could they achieve their million ringgit? They brainstormed and came to the conclusion that they would need to consider their assets, unit trust fund, EPF, and other investment portfolios, including saving every month at 3% interest rate in fixed deposits. If there are two words to describe their feelings after completing this exercise, it is “shocking disbelief”. Ms Tang Woan Koon said, “This workshop has made me realise how important it is to make more money and to save. It has been very beneficial to me and to my deaf friends to discover this now. We're still young and have the advantage of many more years to achieve our savings plans, compared to older adults. In the exercise that we did, we have realised that in order to make our first million ringgit, we may need a period of 18 years to 40 years to do so, depending on our age. So we are all very glad to have this workshop and learn this secret of being financially independent.”
Brainstorming in sign language
In shocking disbelief, so Lee Tur Chung clarified a point
As for Yao Quan, it was a surprise to find out that to sustain his present lifestyle, he would require to have RM6million. He aspires to invest in a business, save his money, travel to see the world, and at the same time, to exercise and keep fit to make all these goals a reality.
Yao Quan (left): I want to change my lifestyle and keep fit
Carol Yip said, "We need to coach and guide the young adults before it is too late, and I do hope the Ministry of Education will consider incorporating managing finances in today's education curriculum. I am very delighted to conduct this workshop with PIDM for the deaf as very often, they are not included in training workshops. I've got my friends to help out, and Lucy Lim has been very helpful to conduct the sign language for me. Thanks to KDU too for sponsoring the venue and publicising it. Managing your money well is a serious matter as it affects the lives of families, people's future, and that of our society."
At the end of the workshop, Carol presented each participant with the "Permainan Papan" (board game) from PIDM, which is designed for children from 13 years and above who can play this board game to enhance their financial knowledge.
