I did financial planning for many young gruduates over the years and really empathise with many of them on their financial difficulties in their early years and I have my fair bit of challenges in helping them getting the right insurance coverages and wealth accumulation discipline.

Many graduates from low or middle income families have to start paying study loans to the banks or to their parents CPF from day 1 they graduate. The average starting pay for a polytechnic graduate is about $1,800/mth and for a University Graduate about $2,400/mth. After CPF deduction, their take home is about $1,440 and $1,920 respectively.

For the University graduate who graduate at as old as 25 years old, he/she may start their foot with about $25,000 debts, payable over a period of about 4 years. With an interest rate of about 3.5%, their monthly  instalment will be about $560/mth. This will reduce their income to $1,360. They ...