January 08, 2015

How to Secure your Kids Financial Future

I was not born with a silver spoon so when I’m still young I always try to save money so if I want something I can buy it. Saving is the only thing I know to prepare for my future. I got my first savings account when I entered college. I went to the bank and applied for one, the bank staff passed me to the bank manager for approval because I only have student ID and we all know they want 2 valid ID’s. 

I talked to the manager, I can’t remember the conversation anymore but after that he let me open my first savings account. At that time, I felt so fulfilled because I had my first ever ATM. I wish they taught money in high school so at least I have an idea how to grow my money. 

Junior Savings Account

When I had my son, I make sure that I will open a savings account so when I got his birth certificate (a month after I gave birth) I immediately went to BDO to open his Junior Savings Account, for as low as P500. I think other banks also offer savings account for kids too. Photocopy of birth certificate + 1x1 picture is the only requirement. 

All the money he received from his baptism, birthdays, Christmas or any other occasions, I put it in his savings account. Every month, we also go to junkshop to sell our boxes, plastic, bottles and many more and all the earnings will go to his savings. #mayperasabasura

Read: How to Open Savings Account in BDO


Piggy Bank 



My son doesn’t know about his savings account and he doesn’t care about money yet. Last 2013, I decided to introduce money to him so he will know the value of money and he will learn how to save. If he wants something, learn to save. So we bought a piggy bank for him. See the story here 

Time Deposit 

The interest rate in savings account is so low so I decided to transfer part of his savings in time deposit. I applied it online, check it here if you are interested to know. But after one year, I decided to withdraw it because I can’t see the difference. The interest rate is still low. 

Stock Market 

In one of my posts, one of my readers informed me that I can open an account for my son in COL. Thanks Tin for the suggestion. That was September 2013 so I put it in my 2014 goals




I received newsletter last October from Bo Sanchez about “Invest P10 a Day” to secure your baby’s financial future. This reminds me to open an ITF (In-Trust For) account in COL. It is a joint account wherein one parent is the primary holder and the child is the beneficiary. By the time the child reach 18 years old, you have the option to transfer the account to Individual account under your child’s name. 1 valid ID of parent + birth certificate of child for the requirement 

Read: How to Apply ITF (In Trust Fund) Account in COL Financial

So before the year 2014 ends, we went to COL office in Ortigas to apply for ITF account. You can start for as low as P5000, that was their COL starter. So I transferred part of my son’s savings account in COL because I know that he can earn more from dividend compared to 0.25% interest rate in his savings account. 

This is all I know to secure my son’s financial future. Though he was not aware yet about his savings and stock market account. At least he knows how to save in his piggy bank. Actually, whenever he wants to buy something and when I say “we don’t have money”. He always reply “I have money in my piggy bank”. Natatawa na lang ko, as if ang laki ng laman nun. 

Care to share your tips in planning for your child’s future?

25 comments:

  1. Great photos. I think this is fantastic, and I wish you all the best in this, in 2015 and always.

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  2. Great idea! I am also thinking about opening an account for my daughter. I am also inspired by Bo Sanchez. Best wishes throughout the year :)

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  3. This is very interesting. I will consider this for our baby too. Thanks!

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  4. I want to open a COL account too pero I am a bit scared kasi I have no idea kung paano nagwowork yun.. =( But it was a good idea you had. The interest on savings account is really low..

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    1. It was scary at first but you will learn in the long run.

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  5. I've always been interested with stocks and its options, but didn't know how to go about it, thank you very much for sharing this.

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  6. Like you, we've also opened a savings account for my daughter when she's still a baby. All her Christmas, Bdays, etc money goes to that account. Then last year when she started writing for a newspaper, the company required her to open an acct at a specific bank. So now, she has two savings accts. And at an early age, she knows how to handle money well. Like if she likes a particular book, sometimes she waits for the "sale" season kasi sayang daw yun 20% discount :) - edel

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    1. In BDO, at age 7, kids can have their own savings, hindi na joint kasi nga nakakapagwrite na daw sila. Good for you that your daughter can handle money and alam pati sale. :)

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  7. my kids have their own savings account, all their pamasko is there :) I grew up kasi na kinukuha ni mudra ang pamasko ko lol, this time if pera nila, kanila :) si hubby nabanggit na din sakin ung time deposit and mas malaki nga daw ang interest compared sa regular savings. so might give it a go soon.

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    1. hehehe! ako naman nauutang pamasko ko dati so sa anak ko, whatever he gets sa kanya din. :)

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  8. What a timely read! I'm just about to start our savings this year using the weekly savings tip I'm sure everyone's heard and tried. We did it last year to save up for the delivery of my second son. We'll be opening bank accounts for the boys soon as we can too. I'll look into ITF!

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    1. Some of my friends tried the 52 weeks money challenge, I just don't know if they achieved it last year.

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  9. I've always wanted to open an account with Citisec Online. I've attended seminars that they hold in their Ortigas office pero di pako nakakaopen ng account for both Brianna and I. :| Thank you for this, mas nakakainspire to take control of my finances.

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    1. I haven't attended their seminar yet because the last time that we went there, wala schedule. :(

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  10. It's always good to start saving early and its good for the kids to learn the value of money and hard work. I'm planning to open a bank account on both my kids but so far I haven't done anything yet. Sa ngayon, nilalagay lang muna sa piggy bank nila which is fun naman, But I have to open them a bank account soon.
    http://www.sweetcuisinera.com

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  11. I have open saving accounts for all the kids when they are born and am teaching them the value of saving and prudent spending

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  12. My parents taught me how to save early on. I always had a piggy bank. In college, I had to open a bank account for my allowance. Btw, I wanted to learn about COL. I hope I would be able to attend their seminar this year.

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  13. My child has a savings account. I put all the money she received last Christmas in her account. I have not taught her how to save using a piggy bank. Maybe I should start teaching her when she goes to school ; )

    xoxo
    MrsMartinez

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  14. Good job on that one mommy. I'm always a firm believer of starting early especially when investing in our kids' future :) You can also try BPI Family Bank's MaxiSaver plan. Its a deposit account that gives additional .50% on top of the interest rate every month in case you don't have any withdrawals for the month :)

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    1. Aww, .50% na lang pala. Years ago na nag-apply ako, 1% pa ang additional interest. :(

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  15. We have account in COL na. Gusto ko sana another one for our son but we have yet to decide. We will invest in mutual funds too :)

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    1. I want to try mutual funds too, pag may extra budget na. :)

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  16. Thank you for sharing about COL starter sis Michi. My children have their savings account sa Metrobank (ITF) and may kasama insurance for the principal account holder since 5 years old and below pa lang mga bata. Nagiisip narin ako san maginvest for their education kasi by the time na mag 18 na sila naku milyones na yan tiyak and according to the computation ng Sunlife. Malapit ko narin sila pakitaan ng piggy bank and teach them :)

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    1. True, preschool pa lang ngayon ang mahal na how much more sa College.

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