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Asked by Huanmin Huang

Updated on 18 Apr 2019

How much should I set aside monthly for my child (18 months old) and where would you put the money?

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You will have to determine your budget and comfort level. I’m afraid no one has the ability to determine that for you.

If you did set up the CDA, that is one avenue that you should not forgo.

Based on:

  • Your budget
  • How long do you intend to save/invest
  • Risk appetite

Endowments, ILPs or Regualr Saving Plans from banks are some of the available options.

Actions leads to reactions/consequences.

Choices available depends on the knowledge you hold.

Get more information to increase your choices and then you will be able to make a decision that is best for you.

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Dawn Fiona
Dawn Fiona,
Level 5. Genius
Answered on 14 Aug 2018

Depends on what you would afford!

I would first max out the CDA. Then park in my own high-yield bank saving account if I still have money left to earn the bonus interest on. If not, CIMB FastSaver is another good place. Or short-term fixed deposits / endowment plans by local insurers eg. http://www.sgbudgetbabe.com/2017/10/better-than-fixed-deposit-fwd-202.html

or the easiest and pretty risk-free could be Singapore Saving Bonds :)

I personally would invest the money for my child as well, but this depends on your own investment skill, risk appetite and time.

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