Where to Save or Invest - For your KID/s

[maplesyrup]

I have a kid and since I started giving him baon I also started to teach him how to save. Happily marami na naman sya na-save, I opened a saving account for him and its been 2 years na pero syempre sa bank it's like wala pang 10 pesos ang na-earn nya (Metrobank). I'm planning to change na ng bank kasi pati yung mga promised freebies when opened it for him laging "wala na pong ganon" ang sagot ng mga tellers. I just wanna ask other moms out there. Kasi hindi naman ganon kalaki ang money nya but I want to teach him how to save kasi iniipon nya eh tapos when we reach more than a thousand sinasama ko sya sa bank to deposit. Any suggestions where to deposit or invest yung maliliit lang na amount na meron din sana participation ang kids as much as possible para they know the experience and ma-enjoy nya.

Thanks in advance!

[ieiky]

sis, ako nilagay ko sa Mutual Fund yung sa baby ko since wala naman ako plano galawin un. anyway, 4 yrs old pa lang si baby and I ask him na ibigay muna niya sa akin mga napamaskuhan niya then ilalagay ko sa bank.

[oreo08]

our daughter's money are in shares and MFs we figured kasi na since hindi naman namin gagamitin yung pera nya at all, iinvest na namin

[maplesyrup]

How does mutual fund goes ba? Not very familiar kasi if you can orient me a little. Thanks!

[ikaela]

In building the habit of saving in children, it's nice to have something tangible -- an alkansya, a piggy bank, a bank passbook. I would retain the visits to the bank or the regular hulog to the piggybank. Those also present invaluable teaching opportunities about finance and discipline to children.

Once you've saved up a considerable amount, say P1000, you can deposit that to higher-earning investments. My top suggestion: buy shares of a blue-chip company your child understands, like Jollibee. Or Metrobank, if that's the bank where he saves. Or maybe Ayala, if that's where you live or do most of your shopping. Then keep at it until he turns 18 and can manage the stocks he holds himself.

Second suggestion: Security Bank peso equity UITF or Philequity Fund mutual fund. On your part, it's just like depositing money in the bank, but with higher chances of earning much, much, much higher interest. (There is also the chance of losing money, but this risk goes down the more long-term an investment is, like the one you have in mind for your child). On the fund's part, the managers will be the ones in charge of investing your money. You don't need to worry about which company you should invest in, which ones are doing good or bad this year, or even whether the stock market is going up or down -- let the fund managers worry about that.

[ieiky]

@ikaela: grabe sis, dami ko natutunan sa mga inputs mo.

[cheezecake]

I've been saving for my son. He is very fortunate maraming nagbibigay ng pera sa kanya kapag birthday nya and December. I placed his money before at PSBank around 500++ monthly yung interest 90k yung pera nya nun but now nasa 300++ na lang yung interest but so far so good.  I also bought a gold coin for him ayun bumagsak ang price ng gold so technically he lost money in this investment. I'm planning to open an account para bumili rin ng stocks for him problem is I might be working na and I will not be able to trade.

[sachism]

I am placing our daughhter's money in MF too. When she's bigger, i'll open a bank account with passbook so shell understand better and get into the habit. She has alkansya now. And nakakapuno na kami ng dalwa. 1 every year. She started when she was 2yo. Dpa nabubuksan. Effort kasi magbilang

[oreo08]

yup, our daughter is only 16 months old and since birth, marami na syang pera kasi rega-regalo. She doesn't know what money is, for her plastic lang yan na iwave nya for her entertainment. That's why, stocks and MF sya agad nilagay.

She has a bank account rin where we deposit her money until it reaches the minimum amount that we can invest in stocks ($600 dito).

So far, she's earned dividends na around $40-$50 and that's within less than a year ha.

Itutuloy namin ni hubby to with our daughter tapos ituturo namin sa anak namin para maging aware sya na investments are good basta well researched and educated ka about your investments. Ayoko patulugin pera nya sa simpleng bank account lang dahil sayang.

[cheezecake]

as early as 9 years I introduce stock market na to my son. For me, it's better to start early.

[miksha]

@ikaela
how do you go about buying shares for companies like Jollibee, ayala, etc... is this like being in COL/stocks? I would like kase sana that the stocks I will buy nagbibigay nang dividends annually para at least may sure return. How do I go about looking for companies (reliable and stable companies) that give out dividends when you buy shares? I went to a bank and asked about this and all they can say was "sa ngayon walang offer na ganyan e. Naga-announce po kase sila kapag may availability. Mag UITF na lang po kayo" so I'm thinking mali ba ang place na napuntahan ko or something? Or hindi lang talaga anytime pwede ka bumili nang stocks/shares from a company?

[ikaela]

^Yes, investing in those companies is EXACTLY buying their common shares through a stock broker like COL.

Here are lists of dividend-paying stocks. Favorites of us Pinoys are PLDT, Globe, Ayala stocks, and the big banks:

http://www.topyields.nl/Top-dividend-yields-of-PSE.php

http://www.pinoymoneytalk.com/best-dividend-paying-stocks-2013/

There are also dividend-yielding mutual funds and UITFs. Top performers of 2014 are Philequity Dividend Yield Fund and Security Bank High Dividend Peso Equity Fund.

The person you asked at the bank was referring to preferred shares, which has a fixed interest rate (usually around 4-7% in today's times) and scheduled pay-outs (usually quarterly). Preferred shares are only offered from time to time. They are also very different from common shares of stocks and the dividend-yielding stocks you are looking for. He clearly didn't know what he was talking about, but I'm not surprised -- it's rare to find bank personnel who is well-versed in investments.

[maplesyrup]

Wow thanks andami ko natututunan and dapat pala malaman... Thanks!!!

[bagaholic_chewy]

Will subscribe to this thread kasi interested din ako on ways to invest our baby's money.

Sa ngayon, we opened a bank account na lang muna for her (she's turning 8months this week). The monetary gifts from her binyag and nung Christmas are in that account. But we want a higher return din sana. We plan on putting a portion of her money in time deposit when she turns 1 kasi for sure me monetary gifts ulit sya matatanggap.. and I would like to buy some shares din siguro. For shares of stock, how much is minimum investment, like in COL?

[PetiksPinayInvestor]

^ In COL Financial, initial investment is P5,000

More details here:
https://www.colfinancial.com/ape/Final2/home/open_an_account.asp

Also from FAQs:
https://www.colfinancial.com/ape/Final2/home/faqs_main.asp

What is the minimum requirement to open an account?
For Starter accounts, the minimum deposit is Php5,000.
For Plus accounts, the minimum deposit is Php25,000.
For Premium accounts, the minimum deposit is Php1,000,000.

Who can open an account?
Any individual(s) of legal age of any nationality or legitimate corporation may apply for a COLFinancial account. Management reserves the right to approve/deny any application as it sees fit based upon its measures of standard.

However, I have a friend who opened an account for 5 of her kids.

You can call their Hotline: 6-515-888 for General Inquiry & Account Opening, or email them at helpdesk@colfinancial.com

[bagaholic_chewy]

^ thank you, sis! Will check this out.

[rikki21]

joining this thread. I opened a BDO passbook account for my daughter last year. mali pala dapat MF nlang or UITF nlang, mas mataas pa returns

[sachism]

^^ mas madali pala magopen sa COL kesa sa Philequity. Kelangan ko pa mag personal appearance Sa PhilEquity. Tsk. Sana magstart na ang MF sa COL.

^ maganda din maglagay ka kahit konti sis tapos say 80% lagay mo na sa MF or UITF.

[twenty5]

Madami akong natutunan dito pero ako mga 2 years ko na [textspeak!] pinagaaralan ang COL, MF at Stock at kung ano ano pa... Hindi lang ako nakaka pag focus [textspeak!].....

I hope...

[loveleah]

^^Sis,nung nag apply ako for Philequity, nag Skype call lang kami nung Manager then parang 3 minute talk, then parang nag loko Skype ko nun, so we opted for Facetime