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
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
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.
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
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?