A survey of the young adult workforce in the Klang Valley has found that nearly half the respondents are in serious debt.

According to the Consumer Research and Resource Centre's (CRCC) ‘survey of financial behaviour and financial habits of young workers', 47 percent of the young workers are servicing debts at 30 percent or more of their gross income.

" NONE This survey involved 1,002 young respondents around Klang Valley, and also represents the trend of young workers in other urban areas," said Paul Selva Raj ( right ), CEO of the Federation of Malaysian Consumers Association (Fomca) at a press conference in Petaling Jaya today .

Apart from that, the survey, which was planned by the Malaysian Education and Research Association for Consumers (ERA), also revealed that 37 percent of them lived beyond their means.

It also revealed that 15 percent of the young workers have no savings at all. Despite the fact, 70 percent of the respondents saved regularly.

If they had to stop working, what they had saved on the average could only last four months, according to the survey.

It is also found that their average monthly credit card expenditure is RM702, with 65 percent of the respondents earning less than RM3,000.

The respondents are reported to have applied for various loans, such as housing, car, personal and study.

Retirement last thought

As most of the respondents have at least one credit card, 48 percent settled the full amount, the other 23 percent paid just the minimum amount required.

"One of the reasons why young workers have credit cards is because of aggressive promotions and competition among banks, besides the convenience in paying bills," said Paul.

damansara damai illegal worker 230205 lineup The survey also indicated that 37 percent of the young workers had given no thought to retirement, the other 60 percent who had done so were dissatisfied or only somewhat satisfied with their preparations.

The survey was conducted to ascertain the financial knowledge, habits and behaviour of young workers and the profile of those who are seriously indebted.

Paul also blamed the educational system for failing to empower and enlighten the younger generation in money management skills.

"We learned so much in the schools, but they did not teach much on the basics of managing money."

Based on the survey findings, Fomca proposed that the government form a National Financial Education Commission to promote financial management skills in the academic and employment fields, as well as within the community.

The survey report is one of the components in the Stretching Your Ringgit Financial Education Program, funded by Citi Foundation.