Despite starting salaries jumping by 35% to 40% over the last decade, there is widespread anxiety among young adults in Singapore that they are financially falling behind.
Our Principal Tutor, Kelvin Hong, was recently interviewed on Money FM 89.3 with Hongbin Jeong to break down the real-world economics of inflation, housing, and the true cost of living.
If you have ever wondered why a bigger paycheck no longer guarantees peace of mind, this interview is for you. We went beyond the standard inflation headlines to discuss the hidden economic pressures shaping reality for Millennials and Gen Zs today.
🎙️ Listen to the Full Interview:
Bringing Economics to Life
Economics is more than just textbook theories and examination answers. It is the language we use to understand the everyday realities of our lives.
Recently, The Economics Tutor was invited to Money FM 89.3 to shed light on a paradox dominating conversations across the country: Why do young adults today feel financially squeezed, even when top-line macroeconomic data shows strong wage growth?
In this exclusive interview, we explored the hidden economic forces at play.
Interview Highlights: The 3-Part Reality Check
Here is a breakdown of the core economic concepts discussed during the broadcast:
- The Statistical Reality vs. The Milestone Squeeze: While general purchasing power for daily necessities has improved over the long term, progress is highly uneven. Lifestyle assets and major adult milestones—specifically BTO/Resale flats and COE premiums—have experienced massive capital shocks, vastly outpacing wage growth.
- The Blind Spots of Official Inflation Data: We explained why standard inflation rates (CPI) often leave young people feeling misunderstood. Standard metrics do not capture the capital purchase price of a home or a car, which are the exact hurdles young adults are trying to clear.
- Lifestyle Inflation & Opportunity Cost: We discussed the psychological realities of “positional consumption.” Driven by social media and a higher generational baseline, the definition of “enough” continues to rise. We explored why every dollar spent on premium convenience carries a heavy opportunity cost for future financial freedom.
Memorable Quotes from the Broadcast
“So the pay slip may say progress while the milestone checklist says otherwise.”
“I think even more importantly is to know that the inflation indicator is not a home purchase or car affordability index. In fact, the massive purchase price of a home and its renovation cost is completely excluded from the consumer price index.”
“Avoid high interest debt at all costs.. keep the largest fixed commitments like housing and transport within a sustainable range…thirdly, I think to automate regular savings and to invest appropriately, and finally to increase earning capacity through skills and career mobility. Financial resilience at the end comes from both sides of the equation to regulate today’s spending and strengthen future income.”
Master Real-World Economics with Us
The ability to analyze complex, real-world issues—like cost of living, inflation expectations, and government housing policies—is exactly what examiners are looking for in top-tier students.
At The Economics Tutor, we do not just teach students how to memorize concepts; we teach them how to think critically like true economists. By bridging the gap between syllabus requirements and current affairs, students of JC Economics Tuition A-Level and IB Economics Tuition programs gain a distinctive edge in their examinations.
Ready to turn everyday news into examination success?
About The Economics Tutor
The Economics Tutor (TET) is a premier provider of Economics Tuition in Singapore. Founded in 1998 by Kelvin Hong – a Valedictorian, First Class Honours graduate in Economics (NUS) and Former Government Policy Maker. His authority is unrivalled: headhunted to join the Economics faculties of NUS & NTU, he is a Trainer of Economics Tutors, has served as Chairman of the National Economics Quiz, a Judge for International Financial Analysis Competitions, and is personally commended by the RI Humanities Director and Department Head for Economics.
For over 26 years, our specialized JC Economics Tuition (A-Level) program (with dedicated H1 and H2 Economics Tuition classes) has helped students secure As by focusing on critical thinking and our proprietary “Mental Gym” methodology. We take a similar practitioner-led approach in our IB Economics Tuition program, offering additional support for the Internal Assessments (IA) and Extended Essay (EE).
With deep familiarity of both the A-Level and IB Economics syllabus, our curriculum helps students master concepts as well as Exam techniques, avoid common pitfalls and maximise their exam scores. With a track record of 80-90% Distinctions yearly, our students progress to secure their desired tertiary choices in prestigious universities. As a Serial Entrepreneur, Kelvin goes beyond grades to nurture the investment acumen and business decision-making skills you need for life. See our Student Testimonials or explore our learning resources, including our Study Guides and Model Essays (highly sought after by teachers and schools worldwide) as well as our high-yield Concept Videos.
Book your lesson today and experience the difference TET can make to your grades.