Hello, any financial tips for parents of a young child (3yo) and another one on the way this year end? What would be your prorities, and how much do you set aside for your child's future? ?

Question

Penny Chong · Accepted Answer

This is my personal strategy that I learned from a mentor: I would recommend investing 50% in a market portfolio like S&P500 ETF as it historically yields 10% return and has a general upward trend. Another 50% can be other individual stocks that you like and see a potential of 10% return. Diversification is always important. There is no reward for bearing unnecessary risks.

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Hariz Arthur Maloy · Answer

I'll save 5% of my income for their future education needs. I'll have a portion of variable return and guaranteed return.

It's important to also make sure parents are sufficiently insured, kids also should consider getting some early Critical illness cover.

Abuse all Govt initiatives like the CDA as well.

Isabelle W · Answer

Track your expenses, set up emergency funds and pay off existing debts. Consider some financial plans meant to help accumulate wealth for your children's education.

Another priority is to also do your Will now that you have your own family. You are able to provide for a testamentary guardian for your children to account for unforeseen circumstances. Additionally, should you have aged parents you give a monthly allowance to, you may choose to indicate in your Will as well to support them financially.

MT2020 · Answer

Priority will be to set aside some money every month for your next child's expenses.

Jason Sing · Answer

Priorities would be to set aside 10% of your monthly income and to invest in REITs and ETFs so that the money could be used in the future for the children's education and daily expenses.