Speech by RAdm (NS) Lui Tuck Yew, Minister of State, Ministry of Education, at the Closing of the Moneysence - CPF Inter-Polytechnic Financial Education Outreach on Saturday, 15 July 2006, at 11.30 am at Republic Polytechnic Centre, Republic Polytechnic

SPEECH BY RADM (NS) LUI TUCK YEW, MINISTER OF STATE, MINISTRY OF EDUCATION, AT THE CLOSING OF THE MONEYSENSE – CPF INTER-POLYTECHNIC FINANCIAL EDUCATION OUTREACH ON SATURDAY, 15 JULY 2006, AT 11.30 AM AT REPUBLIC POLYTECHNIC CENTRE, REPUBLIC POLYTECHNIC

Professor Low Teck Seng
Principal & Chief Executive Officer, Republic Polytechnic

Introduction
1. I am pleased to join you at the closing event of the MoneySENSE-CPF Inter-Polytechnic Financial Education Outreach programme. It is good to see so many young adults here today at the finals of the Inter-Polytechnic “Voyage of Life” online financial board game competition. This competition, together with the various games and talks that have been organised during the roadshows at each of the five polytechnics, are innovative ways to bring financial education to our young adults.

Importance of financial education
2. Developing life skills through a holistic education is essential to prepare our children for the challenges of a constantly changing socio-economic environment. In recent years, our polytechnics have placed increasing emphasis on nurturing students to become innovative and enterprising and have been equipping them with life skills.This is critical in complementing the domain specific knowledge and technical skills students acquire in their diploma courses. Financial literacy is one of these essential life skills that impact our critical personal choices about lifestyles and investment decisions, about our cash flows and credit situations, whether to take up offers of credit, buy another insurance plan, a new set of wheels or a highly touted investment product. Financial literacy is a combination of financial prudence and financial acumen.

3. I do not consider myself qualified to talk to you about financial acumen, so I intend to stick to the subject of prudence. During my time in the Navy, I worked with young adults like you for a number of years. I cannot stress enough how important it is to be financially prudent and to manage your money sensibly. In the exhilaration of having a steady job and drawing their first paychecks, a small number neglected the responsibilities that accompany financial independence and succumbed to the easy temptation of easy credit and excessive spending. It is particularly easy to do so in today’s cashless society where there are many credit facilities available and where the latest advertisements and newest gadgets scramble for your attention and wallets. I knew of a few who fell into deficit month after month and soon found themselves in severe financial difficulties. It impacted their health, relationships and even jeopardized their career. For them, the road to recovery was long and arduous.

4. I am therefore pleased to see a concerted effort here, among all five polytechnics, MoneySENSE and the Central Provident Fund Board, to organise this series of activities to educate our polytechnic students about personal finance.

Polytechnics taking steps to enhance the financial literacy of students
5. The Polytechnics have also been taking steps to enhance the financial literacy of their students. Many polytechnics are conducting personal financial planning programmes for their students in the business, finance or accounting courses. For example, in Nanyang Polytechnic, “Personal Financial Planning and Life Insurance” is a compulsory module for students pursuing a Diploma in Banking and Financial Services.

6. I understand that some polytechnics also organise such programmes for students from other faculties. It is heartening to learn that these courses are well-received. For instance, Singapore Polytechnic’s general elective module on personal financial planning has gained popularity among students from various faculties. The initial run of three classes in 2004 has increased to 16 classes currently.

7. It is also good to see that financial education has also been included in leadership programmes. As part of its leadership camp, Temasek Polytechnic organizes a financial management workshop for newly-elected student leaders of its Students’ Union and Clubs.

8. In addition, a few polytechnics have expanded their financial education outreach beyond their campus to secondary school students. I understand that the academic staff and students at Ngee Ann Polytechnic have been organizing financial education talks and workshops for secondary school students since 2002. So far, over 6,500 secondary school students have attended these programmes.

9. In conjunction with this MoneySENSE-CPF initiative, the five polytechnics have also come together to conduct a survey to assess the financial literacy levels of polytechnic students. At this juncture, I would like to commend Republic Polytechnic for spearheading this project and analyzing the survey findings.

10. I am heartened to know that the survey revealed polytechnic students as having a greater awareness of prudent money management habits, financial planning concepts and common financial products like unit trusts and participating life insurance policies. It is encouraging to see that many of you have the knowledge. However, the challenge is for you to leverage on that knowledge and take active steps to manage your finances wisely.

11. Moving on, I would like to see the polytechnics continue in your endeavours to bring financial education to young adults on a sustained basis.

Launch of MoneySENSible Youth Awards for polytechnic students
12. Today, I am also pleased to announce the launch of the MoneySENSible Youth Awards. The objective of the Awards is to identify MoneySENSible Youths who will serve as MoneySENSE ambassadors at each polytechnic. As MoneySENSible Youths, you will spread important financial education messages and encourage fellow students to take a sensible approach to managing their money.

Conclusion
13. I encourage all of you to take a proactive approach to learn more about money matters and to take control of your financial future. I hope you will make use of the tips and lessons you have learnt during this outreach in your daily lives. Remember that wealth is not about how much you earn. It is more about how you manage your money – how much you spend, how much you save and how well you invest it.