​News | The Big Read: Unable to make ends meet on their own, low-income households find ways to get by 

Channel NewsAsia online

 

Expenditures of lower-income households outpacing their incomes is a sign that their well-being is being compromised, said Assoc Prof Teo You Yenn, head of sociology at NTU, responding to the latest Household Expenditure Survey that showed that the bottom 20 per cent of households are spending S$2,570 a month while having a monthly income of S$2,235. “People generally adjust spending to expected income, meaning that people with lower income already forgo spending that higher-income people consider basic needs, including educational needs such as tuition, nutritious food, healthcare, and leisure and social activities important for overall well-being.” This trend would imply that these families are unable to save, which has negative long-term effects in old age. It also puts stable households at risk of a crisis when there is illness, accident, job loss or a child with special needs, she added.

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