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:
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 email@example.com.
Think BIG. Start small.
Begin with a Regular Savings Plan.
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.
The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.
Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.