I am sure many of the readers already have plans or savings for their kids. Be it trust funds, education plans, ASB and many other forms of savings and investments, we are spoilt for choice. Today we have a reader, Farid Sulaiman who would like to share how he and wife manage their kids’ savings.
I want to share my story on how me and my wife started our kids’ saving fund. Back in 2002 when my wife was pregnant with our first child, we have decided that we should start to set up a saving fund for her.
When our first baby, Nur Insyiraah was born we were very grateful and happy. It is a Malay culture when a new baby is born, relatives will come to pay a visit and give money as gift. Insyiraah’s savings account was opened using the ‘angpow’ money received. Subsequently we ensure that we banked into her account at least RM100 every month. Our aim is to ensure that we save at least RM1200 every year. We have then taken the same savings approach for the rest of our kids.
Frankly it was not an easy task for us to ensure that we achieve the targeted savings amount but we did it anyway as we know if we prioritize our needs correctly, we will be able to set aside a sum of money to save.
Now all of our kids’ saving amount is in line with their age. Nur Insyiraah who is now 13 years old has more than RM13,000 in her account while my second child Hariz has more than RM11,000 (he is now 11). The same goes to our 3rd and 4th child. Both of their savings sum up to the amount planned. Technically, I would say our kids’ savings are more than ours!
Just to simplify how we managed to do that:
- RM100 monthly contribution from us was one of the source of their savings.
- 30% to 40 % of the money save was given by relatives and friends during Eid celebrations and other events such as birthdays.
- We will also add in our contribution into their savings account when we received our yearly bonuses.
Until now we refrain ourselves to touch our kids’ savings. Nevertheless, we moved certain % of their money and invested in other safe investments such as unit trust to maximize the returns.
So this is our story on how to save consistently. Again it is not an easy task but we were determined to stick to our objective, and good enough, we are able to do it. So guys, what are you waiting for, start your savings planning now and save.
We would like to thank Farid for his kindness and hopefully it will be beneficial to other readers as well. Farid recently, has started his blogs on finance and investments where he shares his knowledge and experience. You can visit his blog to learn more about his method of savings.
As always, we are keen to receive other stories for all the readers to benefit from. Don’t forget to express your opinion in the comment below or email us if you have something to share!