A recent survey has revealed that young Singaporeans are taking a conservative approach to money management, favouring risk-free savings products such as high-interest bank accounts over high-risk investments like cryptocurrency.
Young Adults Choose Safety Over Speculation
According to a Straits Times survey of 1,000 people aged 18 to 30, 73% of full-time employees have bank savings accounts. Many are drawn to accounts offering bonus interest of $100 to $400 monthly, simply by depositing their salaries or using the bank’s credit cards.
This reflects a broader trend: young investors are more cautious than commonly assumed. Instead of chasing speculative gains in cryptocurrency, they prefer more traditional instruments such as fixed deposits, listed stocks, ETFs, bonds, and gold.
Close to half of those surveyed identified themselves as risk-averse, preferring investments that protect capital and grow steadily, even with lower returns.
Beyond Investments: Insurance and Prudence
The survey also shows strong awareness of financial protection:
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63% own life insurance policies
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40% bought private hospitalisation insurance, despite employer coverage
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37% purchased critical illness insurance
Some married young adults are even planning ahead with endowment plans for children and annuities for retirement.
On the spending front, young Singaporeans are generally savvy savers. They avoid impulse purchases, prioritise experiences over luxury goods, and spend within their means. More than 40% prefer paying with debit cards or digital apps rather than relying on credit cards.
Interestingly, around 70% also engage in chance-based activities like lottery tickets and blind box collectibles—but with disciplined spending limits.
Two Key Areas for Financial Growth
While the findings are encouraging, there are areas where young adults can further strengthen their financial position:
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Build an Emergency Fund
At least six months of household expenses should be set aside. Yet, 57% of young workers are unaware of this need. High-interest savings accounts can play a role in growing such funds safely. -
Make Better Use of CPF
Young workers rarely pay attention to CPF. But topping up the Special Account (SA) with up to $8,000 annually not only offers tax relief but also earns 4% compounded interest.
For instance, saving $200,000 in SA by age 35 could grow to over $600,000 by age 55 with interest and monthly contributions.
References
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The Straits Times: A recent report highlights that 73% of young working adults in Singapore prefer high-interest savings accounts over high-risk investments such as cryptocurrency. https://www.straitstimes.com/business/invest/high-interest-savings-bank-account-is-top-investment-choice-among-the-young?utm_source=chatgpt.com
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Kantar Market Research: Conducted in 2025, the survey of over 1,000 Singaporeans aged 18–30 analyzed financial habits, risk preferences, and retirement planning among young adults. https://www.straitstimes.com/singapore/millennials-want-to-retire-by-60-but-are-they-making-the-right-money-moves-to-get-there?utm_source=chatgpt.com
