Singapore youth feel ready for the future, but their digital financial knowledge may suggest otherwise

Singapore’s youth are confident about what lies ahead, but the skills meant to carry them there may not be as solid as they believe. Findings from Singapore’s first Youth Future-Readiness Index (YFRI), jointly developed by Republic Polytechnic and CGS International Securities Singapore, reveal a persistent disconnect between optimism and preparedness, particularly in the area of digital financial literacy.

The YFRI surveyed 1,729 Singaporeans aged 18 to 35 between August and December 2024 and was designed as a composite measure of how well young people are equipped to face future challenges.

To do so, it assesses three domains: future preparedness, sustainability literacy, and digital financial literacy. Of these, only the digital financial literacy component was adapted from an existing framework, namely the OECD’s International Network on Financial Education Toolkit. The surveys for the other two domains appear to have been developed by Republic Polytechnic and CGS International. Scores are measured on a scale of 0 to 100, with higher scores indicating stronger performance.

Signs of confidence

The first domain, future preparedness, captures how young people perceive their readiness for the future. On this front, Singaporean youth report a broadly optimistic outlook. Nearly two-thirds of respondents believe they possess the skills needed for a future economy, and a similar proportion express confidence that they have what it takes to succeed.

The second domain, sustainability literacy, examines knowledge, attitudes and assesses behaviours related to sustainability. Singaporean youths received a score of 65.82. Respondents demonstrated a solid grasp of basic environmental sustainability concepts, suggesting that awareness is relatively high.

Attitudes were also positive: around 70% agreed that it is important to take action against climate change, and 60% expressed a desire for stricter environmental laws.

However, these attitudes did not translate into personal behaviour. Less than half of respondents reported changing their lifestyles to reduce waste, and only one in five considered a company’s social or environmental impact before making a purchase. On the investment front, even fewer individuals had put money into environmental, social and governance (ESG) products. The gap suggests that sustainability is still largely perceived as a policy or regulatory issue, rather than an area where individual choices can meaningfully make a difference.

Where cracks emerge

The most pronounced weaknesses emerged in digital financial literacy, which the index treats as distinct from general financial knowledge. Digital financial literacy refers specifically to the ability to assess online financial products, understand digital risks, and make sound decisions in an increasingly digital financial ecosystem. In this area, Singaporean youth scored an average of 56.7, well below the OECD benchmark of 70.1.

The findings suggest that many respondents underestimate the risks they face online. Although close to 80% believed they had at least an average level of financial knowledge, more than half admitted they did not verify whether online financial service providers were properly regulated. A majority also believed it was safe to shop on public Wi-Fi networks and tended to skip reading terms and conditions documents.

Compounding this is a lack of discernment around information sources. Around half of respondents rely on friends, family or acquaintances for financial information, while one in five turn to social media influencers, regardless of their credentials. This preference is understandable; traditional financial advisory roles are often viewed with scepticism, and advice from familiar or relatable figures feels more presonal and trustworthy. However, relying on secondary sources rather than primary or authoritative ones increases the risk of absorbing misconceptions and developing blind spots.

One of the report’s findings illustrates this dynamic clearly. Young adults, particularly those aged 18 to 25, expressed the strongest interest in alternative investments such as cryptocurrency, yet recorded the lowest digital financial literacy scores. This mismatch suggests enthusiasm driven by online narratives, without sufficient understanding of digital risks, regulatory safeguards or underlying mechanics.

There is, however, a partial bright spot. Around 80% of respondents reported not sharing passwords or personal financial information online. At the same time, one in five admitted to sharing passwords and PINs with close friends or family members. While often seen as harmless, this practice becomes increasingly risky as artificial intelligence improves the sophistication of deepfakes, fraud, and phishing scams.

Rethinking readiness

Beyond individual findings, the index raises broader questions about how future readiness is defined and measured. The future preparedness domain relies heavily on self-assessed agreement with broad statement such as “I have what it takes to succeed in the future”. Such a question is just as likely to be about psychological traits like optimism, resilience or grit as much as it is about concrete skills or competencies.

When set alongside measurable gaps in digital financial literacy, this risks framing Singaporean youth as overconfident, when the issue may instead lie in how preparedness itself is conceptualised. Confidence, after all, is not the same as capability, nor is it a reliable proxy for it.

Seen another way, the Youth Future-Readiness Index captures a generation navigating an increasingly complex landscape with tools that may soon become obsolete. While skills themselves are lagging, awareness, positive attitudes and self-belief are clearly present, and it can be said that these are the qualities necessary for learning. All that is left is to close the gap between perception and reality.