Asked by Anonymous
Asked on 05 Apr 2019
Hmmmm, coming from a viewpoint of someone whose parents actually encouraged me to invest by myself and forcing me to keep my own money and making me purchase everything with my own purchasing power, I may not be the best person to give advice, but heres my 2 cents:
Your parents might be holding on to your savings because they believe that they have better investment knowledge than you, or that they are actually investing your money for you right now by placing it within a high interest rate savings account/ endowments plan. It is a good idea to find out the reason why are they not allowing you to invest or hold onto your own money in the first place, is it because they are investing it for you? Finding out what are they doing with the money is the first step.
Next, find out why they don't release it to you if they aren't actually actively investing it or have it locked up in a plan.The problem may stem from the fact that perhaps you are too frivolous with your own money, or you are buying alot of big ticket items which they feel is pointless. If that is so, a good next step is also to look within and see if such behaviour is justifiable.
I think a good conversation is a start to letting them know how serious you are: show them you have a plan, what you intend to do with the money, what would your portfolio look like, timeline etc. You're going to need a solid plan either way before you start investing, so this is a practice for you to boost your knowledge and make sure you possess a certain level of understanding of the financial markets before you go ahead to start investing. That would really blow any parent away in terms of knowing that their child is becoming independent and seeks to gain invaluable experience in the real world of investing.
Worst come to worst, and they are refusing to budge even after your pitch, then I suggest, go take a part time job, open a new bank account, save up a sum of money and invest it if you're completely serious. Then show them the returns you have made. I truly believe that if they are unable to match that rate of return, no rational parent would be withholding the money you have painstakingly saved, when the whole point is to retain it for your use anyway.
Either way, a good conversation is needed first between you and your parents as to the reasons for their refusal. I hope this helps, and I hope that you can start your journey investing soon!
One way I can think of, is for you to register and attend a Personal Finance Masterclass via the above-mentioned link, and ask your parents along. This way, you can have family bonding and also for your parents to see where else you learn personal finance from, so hopefully they will decide whether to let you invest on your own or not.
Top Contributor (Jun)
Well, like how a business founder trying to get funding, treat them as investor and try:
1) Do research and proposal of investment, support with evidence and statistics, historical proof that the investment that you wanna do can make $ in order to convince the "Angel investor" 😄
2) Show them your cost and projections, like how much you intend to invest and by when it can make $, how much you can make etc.
Finally, start small and aim for the 1 year type first to show results. As you show evidence and proof that you're able to handle $ to invest, they will slowly start to trust you and allow you to invest.
All the best 😃 Cheers 👍😃
Maybe you can try talking to them about insurance or savings account as this topics are abit more easy to start a better conversation. Just show them u are interested in personal finance and slowly talk about less risky investments like SSBs and slowly proceed to more risky like stocks.
Here's a few tips (that I used as well) that may be helpful!
1) Try to understand their rationale for not trusting you with your savings to invest (is it because they don't think that you will actually invest the money? or is it because they are afraid that you might lose the money through investing)
2) Show them that you are passionate about investing. Maybe for a start you may want to commit to consistently allocating some of your money to RSS plans
3) Try to talk to them more about global affairs/macroeconomics and financial news so that they know that you are knowledgeable in this aspect