Acessible money for kids
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I think it really depends on how old the kids are, and how accessible the funds are.
My kids are already young adults - 18 and 20, so they have their own bank accounts with ATM cards now. But most of their savings are invested on their behalf (in their own names) by my husband, leaving them with about $2K in the account. He explains what he does to them, so they will hopefully pick up some knowledge along the way. They are thrifty, do not spend much, and are still continually adding their savings from ang pow & excess pocket money etc, so we don’t feel the need to impose any stricter rules. If they behaved differently, we might have limits on what they can spend without consultation or permission, but that issue has never arisen so far. Soon, I plan to get debit cards for them from their own accounts but we don’t think we want them to have credit cards yet. Step by step…
Up to the ages of 16 & 18, their money was in a trust account with me as trustee. The money was "theirs" but they had no access! We allowed them to keep the excess from their pocket money in cash for independent spending. -
DS has enough money for his down payment of his first HDB. The bulk is held in his trust account with me. He has another account that linked to a debit card. I can see he started buying things online with his debit card. It is still within reasonable amount but I am monitoring it. I can also see that he now putting money in his debit card account instead of the trust account. I guess he feels good to see his money growing in an account that he can touch? Anyway, I think we (DS and us) will discuss together to set a limit to that account. Anything above the limit should be transferred to the trust account.
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Dd has only 3k in our joint name account.
Before my mil passed on, she left about 50k for dd’s tertiary education. This money is with me and I did tell dd that local U fees will be taken care of by this money.
Dd has an ATM card and a CC (Supp). She is thrifty and in fact stingy, so we just monitor as and when.
Next year, am planning to use a small portion of the 50k to buy long term SGS bonds so that the principal is intact.
She has a CDP Account and bought a share during IPO. It is a few hundreds and we bought some too. This is to expose her to investment .
I think I shared dd has a CPF Account in which I deposit 1k per year. We started this when she was sec 1. The interest earned is nice though money is locked up -
At what age can open cdp n cpf acct ?
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Starlight,
I like your method. But for cpf money, what happens if they should settle overseas in future?
Mp, if i am not wrong, it is 18 for cdp. -
MyPillow:
At what age can open cdp n cpf acct ?
For cdp, needs 18.
Dd opened her cpf at 13. There was no issue. -
ammonite:
AmmoniteStarlight,
I like your method. But for cpf money, what happens if they should settle overseas in future?
Mp, if i am not wrong, it is 18 for cdp.
I hv not thought about this issue.
For us, here are our roots and unlikely to settle overseas. The cpf is to give her a head start in many things
Even if she settles overseas, I think can withdraw by giving up her cotizenship ??? -
What if she marries / works overseas, but retaining her citizenship?
I am not familiar with this aspect of cpf. -
As parents, we have to worry if kids will 坐吃山空
The intent to “teach to fish than give a fish” remains
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