To fellow parents: what do you do with cash gifts (red packets, etc) for your children? Do you invest it for their future? - Seedly
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Mujimoro

Asked on 25 Jun 2019

To fellow parents: what do you do with cash gifts (red packets, etc) for your children? Do you invest it for their future?

I was considering, for example, SSB investment in blocks of $500 or putting it in a high interest rate account..

Personally I would not be comfortable to invest it in high risk products as it is technically a gift to them and I wouldn’t want to lose any of it :p

Thoughts?

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Fan ZD
Fan ZD, Employee at A Bank
Level 4. Prodigy
Updated on 17 Jul 2019

I do as my parents did. Keep it for them and put into the joint bank accounts. Use these to teach them the concept of income and expense budgeting.

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MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

My parents used to keep in in posb savings account which only gives 0.05% interest :(

for me, i would put it in a high savings account or invest in etfs.

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Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 26 Feb 2020

Not a parent but my parents put these monies for me in a bank.

SSB seems like a good option, money is guaranteed and always wise to grow your money. Especially with the increasing exposure of personal finance lately.

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Not a parent but yes I'm planning to invest it for their future so that have a headstart in life.

Ways to do so: Sometimes there are some endowment plans with high interests, capital guaranteed but need to lock up for say 3 to 5 years. Good start.

Robo-advisors: Abit higher risk but since your child has a long investment outlook, your risk will be minimal, should consider putting some money in here too for faster growth

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Rais M
Rais M
Level 7. Grand Master
Answered on 25 Feb 2020

I just park in the bank. It's my kids money and if I were to lose them during investing, I don't know how to explain to them when they grow up. They are literally my shareholders and I am accountable for them in the future.

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