Find out how Singaporean parents organise their financial planning, and what factors help them choose savings accounts and educational plans with insights from The Kids Bright Future Report 2015. Plus, learn about the OCBC Mighty Savers® Programme and why it’s the perfect start to your child’s wealth journey.
When you start planning for a family or have a little one on the way, your priorities change. You start thinking about things that never crossed your mind prior to this important phase in your life.
A bigger home and car, daycare, preschools and primary schools, healthcare… these are only a few of the matters that may run through your mind.
With all these new and exciting considerations on the horizon, you will most certainly also need to re-think your finances. In this context, financial planning becomes important – and we at theAsianparent know this.
This is why theAsianparent Insights team spoke to Singaporean parents to find out exactly what they think about financial planning for kids and how they implement it.
Based on data collected from over 500 parents, The Kids Bright Future Report 2015 reflects the financial planning behaviour of parents in Singapore. These insights are great for savvy parents and parents-to-be looking to improve long-term systematic investment planning for their children.
Overall, nearly half of parents surveyed were astute financial planners, with 49% holding both a savings accounts and an education plan for their children. While 88% of Singaporean parents open savings accounts for their children, only 47% invest in an educational plan for them.
When do most parents start thinking about financial planning?
The study revealed that parents care most about financial planning when their kids are between 0-1 years of age. This concern tapers off when their kids turn eight. A whopping 67% of saving accounts opened and educational plans signed happen before the child turns one year old!
The 2-3 years age-group is also important as 24% of parents create a savings bank account and 21% opt for an educational fund during this time.
Expert advice: SAVE EARLY
Experts recommend that saving early will give you better returns in the long run. To understand this, look at the idea of compounding. The interest you earn can be added to the savings and you will get even more interest on it, and the faster would your investment multiply.
Read on for more insights