CREDIT CARDS FOR STUDENTS

CREDIT CARDS FOR STUDENTS

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32.

Mr Michael Palmer asked the Minister for Education in light of certain local banks launching or intending to launch credit cards where no minimum annual income is required and targeted at students 18 years of age and above, what plans does his Ministry have to prepare our young adults so that they do not become burdened with insurmountable debts even before they have earned their first dollar.

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Mr Tharman Shanmugaratnam: I thank Mr Palmer for his attention on this subject. He had similarly raised a query on financial literacy in February 2007. Prudence and care in the use of credit facilities, including credit cards, is part of financial literacy. Let me share some of the key actions taken by MOE.

Since January 2004, financial education messages have been delivered through appropriate subjects in the formal curriculum such as Civics and Moral Education and Social Studies at the primary and secondary levels. At secondary level, students are taught why we must exercise caution when we borrow and the dangers when we rely on credit facilities excessively under a module on basic money management. By working with external partners, schools supplement these lessons on financial education with financial literacy board games, workshops and inter-school competitions for their students. A financial literacy enrichment activity entitled 'SAVING - the Sensible Habit' has been made available to all primary schools.

Our young should learn the importance of responsible decision-making and develop good habits in financial matters from an early age. As they progress to post-secondary institutions such as the Institute of Technical Education (ITE), polytechnics and universities, this is reinforced through various means like mentoring, peer sharing, talks and seminars.

Our efforts have helped our students improve their financial literacy and this topic will continue to receive the attention it deserves in our institutions.

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