Article Search By: Pn. Marziati Md Din (Pegawai Kewangan)

Article By: Umi Fatehah

Source: RELEVAN.com.my

 

THE BIRTH of a child is one of the miraculous events full of grace and sustenance for parents.

However, there is no manual or thorough guide that can prepare parents to face all the challenges in raising children.

This includes financial issues for the child's future. Not many people realize that parents need to plan financially for the future since they were born.

Therefore, Relevan shares five things for parents to plan for their children's financial security in the future.

 

1. Open a bank account in the child's name

One of the first topics parents discuss about their child is the name. After the birth certificate has been issued, why does the mother or father continue to open a savings account in the child's name?

Financial experts in Malaysia recommend parents to open a savings account in their child's name on various platforms such as Tabung Haji or Amanah Saham Nasional Berhad (ASNB). Parents can make a new habit of putting at least RM10 into their child's savings every month.

Little by little, eventually becomes a hill. Later, when the time comes for them to continue their studies at university, you will no longer be surprised or anxious to find money for tuition fees, necessities and so on.

 

2. Plan short-term goals

Among the short-term goals that need to be planned is the education fund. As a parent, it is important to plan short-term goals such as the expenses you will incur in one to two years when your child is born.

For example, clothes, medicines, baby food and school fees because the cost of education is increasing every year. Effective planning and investing for short-term goals can make this journey smoother for parents.

 

3. Plan investment for education

It's never too early to start planning for your child's higher education. Starting early will give you enough time to grow your wealth and help you reach your financial goals by investing small amounts of money consistently.Higher education is one of the things in life that is expensive and cannot be tied to financial compromises. You can consider factors such as current education costs, inflation rates, children's age, entry age and expected expenses.

 

4. Get health insurance

One of the sound investment plans that includes all measures of financial security is health insurance. No one can predict future events. Covering your child under a good health insurance plan will ease the financial burden in their life. 

 

5. Parents need to have a solid emergency fund

As the saying goes, prepare an umbrella before it rains. This fund will serve as a safety net in case parents or children need money in the event of an unexpected or emergency.Every month after getting a salary, set aside some money, and put it in an emergency fund. Save according to the ability and suitability of the family. –

 

Date of Input: 27/09/2023 | Updated: 27/09/2023 | muhammad.isam