The Ministry of Education should seriously consider introducing the financial planning and decision-making subject in the existing school mathematics curriculum.
This will ensure students are developing real world financial skills as is practised in certain developing nations where education is their central approach to reducing debt problems.
If something is being done now to highlight financial awareness in schools, the next generation will have the confidence, skills and knowledge to make financial decisions and manage their money well, which means it will make a significant difference in their everyday life.
Being financially capable is becoming increasingly important for all consumers as debt is one of the causes leading to financial hardship and a contributing factor to social problems.
If measures are not taken at an early stage to help them acquire financial knowledge and skills, we will see more and more people in the future totally dependent on loans and borrowing to live on, spending money beyond their means.
The number of students with loan debt continues to rise at alarming rates. Students upon graduating from universities and colleges are often saddled with mountain of debts while employment options are simply insufficient to help them deal with the financial burden.
Because of loan repayments, students are often prevented from becoming homeowners, saving money, assisting their families and settling down early. Some have even resorted to loan sharks or Ah Longs to repay their study loan.
In view of this, the relevant government bodies and agencies concerned should review their lending policy by converting these loans to scholarships if the students perform well in their studies.
Loans instead of scholarships should be offered to all deserving students who wish to pursue higher studies. Upon completion and if they have achieved certain target or results, their loans should automatically be converted to scholarships.
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