As parents we set real life examples for our children to learn from us and hopefully they will follow the right thing from us. Does it make sense to use CPF to be a long term endowment for your kids? One participant asked 2 questions a long the lines of: could we contribute more to our CPF SA, above the minimum sum limit and take advantage of the 4% interest is it a good idea to contribute to your child’s CPF early and treat it as a savings endowment? Uncle8888 belongs to old school of thought. Give Your Child Fish Or Teach Your Child How To Fish? For his three children; when they reached Sec 1 level; he gave them weekly school pocket money allowance for them to manage their money on their own. Whatever leftover were for them to keep. There was never an incident of them asking for more weekly allowance. Each year; their allowance would be increased so that they would be managing slightly more money than the previous year as they grew older. When they reached University level; Uncle8888 opened joint bank account with them and transferred one year worth of budgeted University fund to them and let them managed their own Uni fund. But; it was not totally hand off approach as Uncle8888 still tracked their withdrawal pattern closely and would query them for any unusual sign of expenses.
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.