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 firstname.lastname@example.org.
Think BIG. Start small.
Begin with a Regular Savings Plan.
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