On 29 August 2008, a Straits Times article entitled “More help for pocket money fund students” described how the Straits Times School Pocket More Fund is helping low-income family with full-time students. To qualify for the ST School Pocket Money Fund, it needs to meet some criterions such as

• Singapore citizens or PR
• Full-time students
• Living in an HDB 4-room or smaller
• From a family in which the total income divided by the number of family members is not more than $450 per month.

I think this is a good idea and fair except there is one more problem – a social worker or equivalent should understand how the family is managing its finances generally. The photograph attached to the article shows a 12 year boy who is a beneficiary of the ST School Pocket Money Fund. However someone pointed to me something interesting – the background of the photo seems to show a very large LCD TV. Why is it that a family with cash flow problem is able to afford to buy such a large LCD TV? Would not a smaller TV suffice?

I have always written many times the importance of able to manage one’s finances. There is a saying: give a person a fish and he can only survive for that one day. However, if you teach a person how to fish, he will learn to fish himself and survive forever. Thus low-income families need to be taught how to manage their cash flow and budgeting. Assuming that large LCD TV was bought or via hire purchase, it shows that the family is not prudent in the manner it is managing its finances. Of course there is a chance that that LCD TV was donated to them.  

In the meantime, trustees of charity funds have the obligation to ensure that money is dispersed prudently otherwise their liabilities are not insignificant. Donors should also do their own due diligent before committing their hard earn money for charitable course.