It is alarming to know that from 2005 to June 2012, 25% of the bankruptcy was due to default car loan, and about 50% of the bankruptcy due to credit card loan are those below 30 years old.
In Malaysia, cars are expensive purchase next to house. Just compared similar brand and model you pay here to those in US on the web. You would be shock! The national cars are also unfairly expensive. When our government is unable to provide us with good transportation, it is only fair to lower the motor prices!
I came to know that many parents are serving the monthly car loan for their children. I do not quite agree with this. My first car was a 10 year old green colour Honda Civic about 30 years ago. I paid RM6000 for that. As long as it could bring me safely to my office, I am fine. Many Chinese young adults here would not want to drive a used car in KK. They want at least a Myvi or Toyota Vios. It's vanity. :(
According to the newspaper, the government is offering RM0 down payment car loan for final year students. Are we not inviting our young generation to be in debt even before they get their first job? What about petrol, allowance, motor insurance, road toll, parking?
In Budget 2013, the government is also giving RM200 for those above aged 21 to purchase a smartphone. I don't see this a wise move of teaching our young generation in financial matter. While AKPK is pushing "POWER" program to teach our young generation how to do financial planning, the government is encouraging them to spend and to be on debts. What a contrary!
It goes back to parents of how you teach your children about financial matters. I should think that children must learn how to be responsible for their own expenditure. I discuss with them about the car loan, mistake we made in changing car that caused us some losses, mobile phone post-paid and pre-paid, household budget, insurance, bank matters, credit card, unit trust investment, stock investment and so on. We don't hide about our financial status. When my husband was out of job, we told them and they willingly take part in money saving. We believe all these are helpful to instill good financial concepts to them.
We hope when they have their own family in the future, they will make less mistake and be rational in spending, and to do their planning properly.
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