Winning Entries
in Senior English

• Grand Award

  Chan Cheuk Yiu St. Joseph's College

  Better financial management, better well-being:

  As the saying goes, "money makes the world go round". The importance of money in our modern world is apparent to all, so it goes without saying that the management of money is also extremely important.

  Sound financial management practices can enhance the financial security of individuals and households. A few years ago, I once bought a figurine worth $300 on a whim, using up most of my monthly allowance. A few days later, I was stranded at school due to heavy rain. Because of that purchase, I was left with no money to take a taxi ride back home. After waiting for an hour, I decided to walk through the rain back home without an umbrella. Because of that impulsive purchase, I did not have enough cash left for any unexpected spending.

  After this circumstance, I realized the importance of financial planning. According to a report on the Economic Well-Being of US Households in 2019, 39% of the respondents did not have enough cash to cover a $400 emergency. And for most households, it would mean taking on debt to cover unexpected expenses. This would be financially crippling to them in the long run, as they would have to suffer the effects of compounding interests on their debts. With better financial management strategies, such as budgeting and limiting unnecessary purchases, a portion of these households might have been able to build up enough savings to afford these unexpected expenses without resorting to loans.

  Additionally, financial management is also vital to our mental health. While I was waiting for the rain to subside, I was extremely anxious and stressed about how I was going to return home, adding to the feeling of regret on that purchase. By the time I arrived home, I felt so and so stressed out that I could not focus on my homework.

  Indeed, poor financial health can lead to poor mental health. From the American Psychological Association report "Stress in America: A National Mental Health Crisis," 64% of the adult respondents stated that money was a major source of stress in their life in 2020. Under the pandemic, many people have lost their jobs. Without income, most have struggled to pay for their daily expenses, resulting in stress and anxiety. It is therefore advised that a safety net be created to pay for their expenses by investing into a diverse portfolio of assets that diversifies their income.

  Financial management is positively related to one's health. Thus, the importance of financial management cannot be understated. This topic should be learnt at a young age so that we can live a happier and more enjoyable life.

• 1st Runner-up

  Chan Hoi Chi Alex La Salle College

  Renowned French businessman Emmanuel Faber once contended, "Finance without planning is just numbers, and strategy without finance is just dreaming." Financial management is crucial in different life stages. Adults are concerned about repaying credit card debts, and the retired are perturbed about maintaining a desired lifestyle. What about students? Apart from ordinary habits like overseeing one's bank account, my experience coming up with a financial plan for Bonjour Holdings Limited provides me with the profundity of financial management.

  Financial management of a company is much more complex than handling personal finance. A few months ago, my participation in the HKICPA Accounting and Business Management Case Competition required the submission of a detailed business proposal for Bonjour. My team pulled together, prepared a comprehensive two-year timeline and developed contingency plans owing to the dynamic business environment and menacing uncertainties like the COVID-19 pandemic. Considerations were made regarding the most effective way to allocate resources, and contingency plans were also prepared. This is financial management, the process of planning for the unknown and preparing ourselves for the potential risks.

  Companies with exemplary financial management are less prone to economic precariousness, and this is no exception for individuals. In fact, competent financial management is a great leap toward financial stability. For example, I have designed spreadsheet interfaces to plan expenditures and downloaded financial management apps to record expenses. This allows me to identify which aspects I spend excessive money on and hence encourages me to cut unnecessary spending and increase savings. Besides, my experience in corporate financial management also reminds me of the potential risks that will be encountered in our daily lives. While corporations need to deal with changes in customers'preferences, citizens also need to prepare for changes in their economic situations, such as unemployment and investment failures. After all, changes are inexorable, be it a tall skyscraper in a vibrant city or a 500-feet flat in the countryside.

  Taking one of my favourite actresses, Kristen Bell, as an example, she has a net worth of 40 million USD but still "almost exclusively shops with coupons". This shows that even if we are in middle or upper class, there is no excuse for us to neglect financial management. The money saved from detailed planning can be utilised when we apply it to passive income sources such as stocks or bank interest, which in turn allows us to have sufficient money when there is something we desperately "need", rather than "want".

  It is fortunate that my early exposure to financial management reminds me of the importance and benefits of financial management. Without a doubt, the uncountable benefits of wealth can only be materialised with financial management.

• 2nd Runner-up

  Lam Sum Ching Heep Yunn School

  "You are your best investment"

  It's true. Taking myself as an example, I am a student. I learn and I invest my time, effort, and many brain cells in learning new things so that I can do what I want in the future. I am investing in my future.

  It is hard to engage in any "formal investment" at this age, but here are a few things I suggest you can try.

  First, invest in different areas. For example, if you want to be a piano teacher in the future, you might want to invest your time and energy into polishing your piano skills. "Don't put all your eggs in one basket" – things may get sidetracked; it's best to explore and find your expertise, polish it, be professional, and be a good investment tool for your future life and career.

  Second, avoid losing. When you are investing in yourself, it tends to be a slow and long process. That is why you should avoid any losses or any barriers that block your investment. Let's say you want to be a lawyer, you require good social communication skills and a hardworking character. All of your actions should point to your final goal and investment. If you refuse to work on your communication skills and fail to show up in class, you are putting a halt to your goal. You slowly drive further away from your planned path and you may never reach your desired result. Your actions should cast a vote towards your final investment goal and the opposite should be avoided at any cost.

  Third, save up for future investments. Not all students have the time to take up a part-time job. That is when saving comes in handy, try saving a specific amount of money each month. In 1993, there was a stockbroker named Trent Dyrsmid, he would always start his day with a jar filled with 120 paper clips and an empty jar. For every call he made, he would move one paper clip to the other jar, until all the paper clips has been moved. This "Paper Clip Strategy" can also be adopted into money-saving. Whenever you avoid an unnecessary purchase, place the same amount of money into your savings, and allow your savings to pile up like the paper clips. By this, you will always have the principle to invest in whatever you desire.

  There will always be risks in investment. Invest in a car, it can be stolen; invest in a watch, it can be damaged; but invest in yourself and your knowledge, skills, and experience can never be stolen, damaged or taken away from you. It is a permanent and impermeable property of yours.

Entries are edited