How much are young adults spending?

Ms Rennes Lee considers a $40,000 home renovation a “splurge”, even though those around her tell her it is not.

Ms Lee, 30, renovated her four-room Build-To-Order (BTO) flat in July. She said the money went towards interior design and renovation, as well as buying electrical appliances and furniture for her flat.

This amount is considered relatively small for home renovation, said the full-time senior brand manager.

But to her, it is an extravagance to spend more than $10,000 on it.

“Although my renovation is considered affordable by many, it is still something that my husband and I consider a splurge because there are ways to get individual contractors to do the renovation at a lower cost,” she said.

“However, between balancing work and renovation, we realised that the renovation required a lot of operational availability (being present on site and following up with multiple vendors), so it did not make sense for us to handle that on our own.”

Apart from her home renovation costs, Ms Lee’s typical monthly expenditure of about $2,000 is not an unusual amount for full-time employees, according to a survey of around 1,000 young people aged 18 to 30 commissioned by The Straits Times and carried out by market research firm Kantar in May.

It is also comparable to the average monthly household expenditure per household member of $1,986 in 2023, according to the latest government data.

Here’s how much young adults typically spend in a month, broken down into the categories of full-time workers, part-timers and students.

On average, a young adult spends about $1,486 a month, but a full-time employee tends to spend more.

What do full-time employees spend on?

What do full-time employees consider a splurge?

Mr Lee Ci En, 28, an advertising strategist, spends about $1,000 to $1,200 a month, including bills and transport. He estimates this amount to be less than or equal to the monthly expenditure of his peers who also work full time.

“In general, it seems like most of us are tightening our belts and spending less,” he said.

This might be a trend because of the uncertain macroeconomic environment, with global volatility around US President Donald Trump’s tariffs and geopolitical tensions.

Mr Lee added that he wants to invest and save up to buy a condominium unit.

“Eating out at a fancy restaurant that costs around $100 per head with drinks is a splurge,” he said.

“I find that a splurge because you can get a lot more and way better food overseas for the same amount or less.”

He ranks transport, food and insurance as his top expenditure categories. In general, he says he eats mainly at hawker centres and coffee shops, and occasionally at cafes and restaurants.

His greatest splurge in the previous year was a vacation in Japan that cost him around $2,500 to $3,000.

Meanwhile, Ms Syrius Liu, 31, spends about $2,500 a month. The freelance life coach said her top expenses are insurance – including an investment plan – an allowance to her parents and education, such as courses, self-development programmes and lessons for hobbies like singing.

In line with these priorities, she splurged on a graduate diploma, which cost about $4,000.

Like Mr Lee, she considers it a splurge to pay more than $100 for a meal.

“I don’t usually splurge as I budget amounts for the different categories of spending per year. In general, if I spend above budget, it is considered a splurge,” she said.

She also aims to spend less, as she wants to save up for her wedding and renovation costs associated with home ownership in the next one to three years. She expects to spend around $40,000 on these, she said.

“The saved money will be invested to maximise returns,” she said.

At the other end of the spectrum is associate director Danish Danial Tay, 31, who works in the financial services sector.

His monthly expenses come up to $10,000 because he has to pay monthly instalments for a car, parking fees, road tax, insurance and petrol.

His other categories of big expenses include insurance and investment plans, such as protection and accumulation policies, and family expenses – his allowance to his parents and his home bills.

“I think I am spending more than peers my age because of my car, business expenses and lifestyle,” said Mr Tay, who declined to reveal what proportion of his income he is spending.

He hopes to keep the amount he spends consistent while increasing his income through his work. His immediate financial goal is to save and invest in order to buy his own property.

To him, a splurge is buying branded clothes or accessories that cost more than $200 a piece.

Mr Muhamad Iskandar, 28, a cyber-security engineer, earns about $4,500 a month before CPF deductions.

“For me, anything above $200 for a single item is a splurge,” he said. “Most recently, I spent that amount on a flight ticket to Sabah, Malaysia, for a trip with my friends.”

Each month, he gives his wife $500 and his parents $400 in allowances. He spends about $150 on fuel and maintenance for his motorbike, and $50 on his phone bill and subscriptions, as well as $100 on insurance.

Mr Iskandar also budgets about $700 a month on eating out and around $400 on groceries. He sets aside another $200 for miscellaneous expenses, such as occasional car rentals or online purchases.

The rest goes into a high-interest savings account for his emergency fund and the renovation of his upcoming BTO flat.

Where do full-time employees get financial advice?

Full-time workers get financial advice from a variety of sources, ranging from their peers to books and online resources.

Ms Lee said she learnt from people in the finance industry when she started working in the sector in her 20s.

She added that she uses CompareFirst, a comparison website for insurance that is a collaborative effort by the Consumers Association of Singapore, the Monetary Authority of Singapore (MAS), the Life Insurance Association Singapore and MoneySense.

Ms Liu follows The Woke Salaryman on Instagram, run by co-founders He Ruiming and Goh Wei Choon. Their account provides tips via comics on how to be financially savvy. Ms Liu also gets newsletter updates from investment platform Syfe.

She credits the books Unshakeable by Tony Robbins and The Richest Man In Babylon by George Samuel Clason for helping her on her investment journey.

Mr Tay said he gets his information from newspapers and peers in the industry.

Meanwhile, Mr Lee gets his information on credit card deals from TikTok finfluencers, or financial influencers.

What do part-time employees spend on?

What do part-time employees consider a splurge?

When it comes to part-timers, they generally spend less than full-time workers.

Mr Andre James Francis, 27, a part-time editorial assistant who lives in his family home, spends about $700 a month, which he estimates to be just under 45 per cent of his monthly income. His top three spending categories are coffee, streaming subscriptions and outings with friends.

“I do not believe I spend as much as my peers,” he said, although he added that he is saving up for an overseas trip towards the end of the year, and that splurge might even out his spending to match peers of his age and employment status.

Mr Francis considers any one-off purchase above $100 a splurge. While he is on overseas trips, anything above $300 a day is a splurge, including accommodation, transport and food, he said.

He splurges on his hobbies and collectibles.

“In the past year, my biggest splurges were Lego display sets, collectibles and football match tickets,” he said, adding that his goal is to buy a full-sized Lego Star Wars Venator-Class Republic Attack Cruiser set, more popularly known as a Star Destroyer among fans.

The Star Destroyer set could cost around $800, although display sets of this model can be found for less, usually costing around $100 to $150. Most of the Lego sets Mr Francis gets fall in this range.

Where do part-time employees get financial advice?

Mr Francis follows his father’s financial advice, such as buying insurance early to benefit from lower premiums and saving at least half his earnings.

What do full-time students spend on?

What do full-time students consider a splurge?

Students make up the group that spends the least in a month, with more than half of them spending less than $500 a month each.

Ms Nurin Qaisara, 19, a first-year student at ITE College Central, earns about $500 a month from part-time jobs.

She works as a cafe barista and events crew member, scheduling shifts around her school timetable and taking on more hours during the holidays.

Ms Qaisara’s monthly spending includes about $250 on dining out and groceries, $49 on a student hybrid concession pass for travel, and more than $50 on hygiene or home products.

The remainder goes into a savings account under her mother’s name, which is used for expenses like wedding hongbao or gifts for her family and friends.

“When I splurge, I like to get items I use in my daily life that enhance my mood and appearance,” she said.

“It could be a more expensive skincare or haircare product I’ve never tried before, or a fashion piece I’ve been eyeing for months… These are occasional treats rather than regular habits, but I see them as a hobby I’m ‘investing’ in to elevate my life.”

Mr Victor Tan, 21, spends close to the average surveyed amount – about $600 a month.

The Nanyang Technological University (NTU) undergraduate said his spending is probably around the average of what peers of his age spend, but added that it is likely to increase when he graduates.

For now, he spends the most on food, shopping and social needs, which include buying gifts for his girlfriend and his family.

“I am a foodie and willing to spend the extra buck to try various types of food,” he said. He prefers having local food at food courts to dining at cafes and restaurants.

Another draw for Mr Tan is tech devices.

“I am a tech enthusiast, and I will save a certain amount monthly to buy new gadgets every once in a while,” he said.

His biggest splurge in the past year was a PlayStation 5 console, which cost around $650.

Unlike others, Mr Tan does not consider vacations a splurge, but an essential.

“I view that as part of my life’s essentials to relieve my stress, and allocate a percentage of my income to it.”

Ms Cally Chan, 22, also an undergraduate, spends a comparable $650 a month.

The Singapore Management University (SMU) student said she spends on food, transport and shopping.

“Whenever I am in school, I visit the nearest kopitiam or Koufu. On weekends, I typically go cafe-hopping around Singapore,” she said, estimating that food costs her about $300 a month.

She also spends around $200 a month on transport, and another $150 on shopping.

“I love shopping for clothes, skincare and collectibles, and I do most of my shopping online,” she said.

She sees anything above $200 as a splurge, such as front-row tickets for a concert.

Her biggest splurge in the past year was a six-month-long exchange programme in Hong Kong.

“Overall, the total cost for transportation, food, souvenirs and accommodation came up to around $15,000. That works out to be about $2,500 a month – a reasonable amount, given the need to cover my rent and daily meals, as I mostly ate out during my stay,” she said.

Ms Chan said she would like to spend less, but envisions her costs climbing.

Where do full-time students get financial advice?

Mr Tan, who is pursuing a Bachelor of Business, keeps himself in the know by participating in the finance club at NTU.

He said he learnt the fundamentals of investment at the club, as well as in his undergraduate courses.

“I believe that surrounding myself with like-minded peers is important to maintain my discipline and exchange useful information,” he said.

Mr Tan also subscribes to the Financial Times. Keeping abreast of financial news helps him make investment decisions.

Over at SMU, Ms Chan is pursuing a Bachelor of Business Management (Finance), and is the president of the 12th executive committee of the SMU FinLit club, which aims to empower young adults with essential financial knowledge and skills.

She also subscribes to online news websites like the Financial Times and Bloomberg.

“Additionally, I love engaging in meaningful conversations with my peers in school to understand different ways of managing finances,” she said.

Managing finances is important to her as she is saving up for her upcoming BTO flat in 2029.

“The first tranche of payment is to be made in September 2025. My partner and I are still figuring out ways to finance this payment, since we are not eligible for any housing or bank loans at the moment,” she said.

Ms Qaisara said she mostly learnt how to manage her finances herself, which she started by identifying what her essential expenses were and setting aside the remainder of her money as savings.

“Over time, this became a habit that helped me budget better. My mum would also offer her advice along the way, which reinforced the importance of saving and spending within my means,” she added.

An OCBC Bank study in 2024 showed that two in five young Singapore investors in their 20s indicated that they access financial information through online articles, while more than a third rely on family and friends.

OCBC’s managing director of investment strategy Vasu Menon said: “It is always important to check, and perhaps even re-check, any information gleaned from online sources, given the prevalence of fake news.

“It is best to get information from trusted media platforms that have a strong reputation for accuracy, or which are regulated by the government or established financial institutions.”

So how much should young people actually save in a month? Experts Lorna Tan from DBS Bank, Vasu Menon from OCBC and Jacquelyn Tan from UOB weigh in.

Lorna: Aim to save at least 10 per cent of your take-home pay, and build an emergency fund that is equivalent to at least three months of expenses.

For someone working full time, it is advisable to aim to save at least three to six months’ worth of expenses as an emergency fund.

For gig workers, setting aside at least 12 months’ worth of expenses can act as a safety net during tough times.

Vasu: How much savings a person should have depends on one’s financial goals, lifestyle and income.

On social media, you may come across numerous videos purporting that it is possible to “save $100,000 by 30”. This is one possible target for young people that has been popularly bandied about, along with the 50-30-20 rule. That means to spend 50 per cent of one’s income on needs and 30 per cent on wants, and save 20 per cent.

Take, for instance, a 21-year-old earning $2,000 a month and hoping to save $100,000 by 30. Assuming he does not invest his funds, and assuming his salary does not increase at all over time, he would need to save about $926 a month for nine years to hit that target. If you take into consideration that his salary would likely increase over time, and if he can keep up the habit of saving aggressively, this target of $100,000 by 30 is possible.

Jacquelyn: The national personal savings rate in Singapore was at 36.7 per cent in the first quarter of 2025, a good benchmark to follow if your income allows.

If that is difficult to achieve, a rule of thumb is to save at least 20 per cent of your take-home pay.

For students, aim to save at least 20 per cent of your allowance for overseas exchange programmes or postgraduate education. Set aside at least three months’ monthly expenses for unexpected school expenses, such as school trips or a new laptop.

For part-timers, aim to save at least 20 per cent of your take-home pay, depending on living costs and financial obligations. Consider temporary full-time work to beef up savings for specific goals, such as buying a home.

For full-timers, aim to save 20 per cent of your take-home pay, depending on lifestyle and financial goals. Set aside three to six months’ monthly expenses as an emergency fund for unexpected expenses.

Lorna: A possible start would be 10 per cent of your income. Depending on your risk profile and financial knowledge, you can start with safer cash alternatives such as Singapore Savings Bonds and endowment insurance plans. You can also take the dollar-cost averaging approach to invest a small sum regularly in a diversified portfolio of unit trusts over the long term.

Lorna: The priority for a young adult is hospitalisation insurance. If you have a bigger budget, you can consider critical illness insurance and personal accident insurance. For protection purposes, the amount spent on unbundled insurance should not exceed 15 per cent of your income, according to the MAS Basic Financial Planning Guide.

Lorna: The amount you spend can qualify as a splurge if it exceeds the typical amount you would spend on an item. For example, if you usually spend $15 on a meal, then spending $100 on a meal would be considered a splurge.

Vasu: A splurge is an expense that was not budgeted for, or that exceeded a budget. It is typically made for “wants” rather than necessities.

Jacquelyn: Splurging generally denotes expenditure that is both non-recurring and non-essential, which may constitute a substantial amount of one’s monthly income.

Lorna: Following reputable sources – like Singapore’s national financial education programme MoneySense – can provide useful knowledge. DBS’ Financial Planning portal also offers essential financial literacy across diverse topics to empower individuals.

To make financial preparedness more accessible, the Singapore Government and industry bodies, including banks, have jointly developed the Basic Financial Planning Guide.

Vasu: Young adults who are internet- and social media-savvy can access information from a variety of online sources, but they should be careful not to assume that the information is accurate, or act on recommendations made by online sources that are not established and cannot be trusted.

Jacquelyn: Reliable sources include reputable financial organisations that are regulated by MAS, such as banks and insurance companies.

• Adopt the “pay yourself first” method by setting aside a fixed amount in a savings account when your pay comes in, so that you have a savings account separate from your “spending account”. You can set up automatic transfers from your current account to a separate savings account each month.
• Track your expenses. No need for Excel sheets or manual tracking – the banks have apps that allow users to track their expenses and set savings goals.
• Use banks’ “money lock” feature: The money lock service enables customers to “lock” funds to prevent unauthorised withdrawals, while allowing customers to continue enjoying the features associated with their savings account. By “locking” funds in high-yield savings accounts, savvy investors can keep their money safe from scammers while inculcating the discipline of segregating a fixed pool of funds every month for savings.
• Impose a “cooling-off” period for non-essential purchases: Before splurging or making a non-essential purchase, impose a mandatory 24- to 48-hour “cooling-off” period to consider it carefully. If you still want it after that period, then go ahead!