Plan ahead for your children’s future!

October 8, 2020

On Children’s Day, let’s look at how you can secure your children’s future.

It is essential for parents to initiate financial planning at an early stage. Yes, this may be a complex task but don’t put it off. Each and every parent would want to help his or her children achieve their dreams.

Billionaire investor, Warren Buffett, famously remarked that “Someone’s sitting in the shade today because someone planted a tree a long time ago”.

To your children, you are that tree that provides and protects. The way you manage your money now will have an impact on your kids’ financial future. Whether that impact is positive or negative depends largely on the decisions you make now.

The following strategies can guide you in securing your children’s future:


Start early

Research suggests that parents can start educating their children on finances as early as the age of three. Four to five years old is an ideal age for parents to explain to them the importance of healthy spending. At 6-7 years old, parents can start opening savings accounts for them. In this timeline, when their children reach their teens, they are likely to have absorbed and cultivated a habit of saving.


Lead by example

Children tend to mirror and echo what their parents do. Thus, it is essential that you set a good example for them on money management. For instance, you can choose not to over-rely on credit, pay your bills on time and save regularly.


Do not just save. Invest to protect against inflation!

Due to inflation, the cost of living will exponentially increase with time. Therefore, you need to plan your investments early and systematically.

Thinking of gifting your child on Children’s Day? We have something just for your little one.

Save for him or her with a monthly investment of as low as S$100 in ETFs or stocks.

Reap the power of compounding with automatic dividend reinvestments.

Click here to find out the special promotion we have for your child or get in touch with our experts, call 6531 1555 or drop them an email at rsp@phillip.com.sg.

Think BIG. Start small.

Begin with a Regular Savings Plan.

Disclaimer

These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

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About the author

Share Builders Plan (SBP) Team

SBP is a regular investment plan that allows an individual to start building up a portfolio of selected SGX-listed stocks from a minimum of S$100 a month. It takes advantage of the Dollar Cost Averaging concept that does not require you to worry about market timing and volatility when you are planning for retirement, saving for your children or achieving any other financial goals.

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