Recession? Not all youths feel the pinch.

Recession? Not all Youths Feel the Pinch

She blows hundreds of dollars on clothes, dines at expensive restaurants and heads to clubs twice a week. In Noelle Tan's world, recession ceases to exist. The 18 year old Meridian Junior College student receives a monthly allowance of five hundred dollars each month from her parents.

Despite the 2008 recession, she was given the same monthly allowance and insists the global downturn has not affected her spending habits. “My parents have not cut my allowance and I still spend whenever I want. I don't think twice just because of the recession.”

Anthony Chia, a 22 year old student, expresses the same minset. “My parents still give me money when I ask for it so I have no reason to cut down on my spending.”

Interestingly, despite the recession, Noelle and Anthony are not the only youths who receive spending money from their parents. Studies show that 75% of youths are receiving the same or more spending money this year than they were last year.

Perhaps the reason behind their nonchalance is the fact that they do not have to worry about their source of income. Mrs Laura Choi, a mother of two teenage girls, gives her take: "Most youths who receive a steady allowance from their parents tend to spend without limiting themselves because they can always go back to ask for more money."

Singapore's shopping belt, Orchard Road was still flooded with shoppers despite recession.

On the other hand, studies show that students who are earning their own money and supporting themselves are deeply concerned about saving as much as they can. Said 22 year old Derrick Koh: “I give tuition everyday after school and I know how difficult money is to earn but easy to spend. I don't splurge anymore and try to refrain from buying unnecessary things.”

Though most youths do not deny that they are affected by the recession to a certain extent, they are still unwilling to give up shopping and leisure activities until they absolutely have to.

Majority of youths expressed that life still goes on with recession and only if they have a tighter budget would they sacrifice certain things.

It is evident that the current economic circumstances are causing youths to prioritize their spending in specific areas. When asked what would be the first thing they would spend less on, most answered 'food and leisure activities' like clubbing.

Why?

“That’s because they are not so important” explains Jason Chuah, a 20 year old student who absolutely refuses to cut down spending on clothes.

Mr Henry Chia, a financial adviser at American International Assurance Company, Limited (AIA Singapore), believes that spending less is not important, but shopping smarter is. Studies show that most youths feel the same way too.

The Great Singapore Sale never fails to entice Singaporeans to hunt for the best deals in town.

4 out of 5 youths say they are waiting for items to go on sale, half are making fewer “impulse purchases” and 2 of 5 are more likely to "comparison shop for the best price. “With recession, so many stores are having sales to attract more customers. Shoppers should target such stores and then it will be a win-win situation” Mr Chia advises.