Monday, January 28, 2008

What is Your Take?

Ok....this is heavy stuff for parents...

Do you think your role as a parent is to educate your child until he has all the necessary qualifications to make a decent living then leave them to stand on their own 2 feet? The rest of the savings you have after which is for you to spend on your own stuff!


Would you buy saving plans, whole life insurance (with money back guarantee) and even at the later stage put aside fixed deposits for them to use? That is you will still be careful with your cash and leave them a heritance to 'die' for!

I have talked to a few parents about this and (surprisingly) the mixture of parents in both groups are about the same!

I reckon it was how our parents dealt with us that makes us work the same way! But if you are from one group, are you changing sides now?

What is your take on this issue?


JLow said...

Both our sets of parents have worked hard to educate the respective kids all the way to tertiary education overseas. And I know both will also be very willing to set aside some assets (real estate, etc) for the kids too.

However, both will also endeavour to ensure the kids are equipped with the necessary financial survival tools. With this, I can see 2 ways about it: Teach the kids about the tools & mechanisms, or set up the mechanisms already and leave it running for the kids.

I personally have been spoiled in that my parents have chosen the latter for me. Thus, I actually know quite little of the financial world and all the tools available for investments, etc. Wife however, is the perfect complement for me. She is very well informed (and stays self-informed) about what is available and the goings on. This skill or desire, I believe wasn't taught to her but may have been the result of "fending for herself" cos both parents were fulltime employees during her development years.

For us therefore, we are likely to adopt a hybrid "model" for our kids: inheritance and education and knowledge (of how make new wealth and what to do with it).

Over coffee an ex boss left this with me: Don't evangalise too much to your kids about getting a good education. Teach your kids (to learn ways) about how to make money.

A gift from God said...

For me... I came from a family who has no financial planning. Money was not well handled. From young I have learned to fend for myself and really work hard to pay for my own education. I did not blame my parents but thank them for making me a tougher and more down to earth person. These days... kids/ young adults...don't know how lucky they are... parents these days... will plan everything for their kids.

My approach right now is to give Reese a good education, already got medical insurance and education plan for him. If possible will encourage him to go for a scholarship...hehe.. along the way will teach him about finances... of course will not overly stress about the importance of money. Once he completes his secondary education...when he enters college..will encourage him to work part time... I want him to gain some exposure in "earning money". At least he will appreciate money and not simply splash it on material things...

KK said...

One rule that I learn (notice the present tense) - "Work as hard as you can, save as much as you can and give as much as you can." To most Asian, rule 1 and 2 are not much of a problem. However, most of us find it hard to give, be it time, money or resources. All the three rules are biblical. I'm still struggling with the second one ... maybe spend too much. :)

Ann said...

Jlow- Good partnership you and your wife! Love what your ex-boss said. Somewhat reminds me of the saying...give a man a fish, you feed him for one day. Teach a man to fish, and he will never go hungry forever.

Florence - truthfully in some ways I had it easy...parents gave us and is still giving us quite a lot! Thus never really looked out for for scholarships or worked to support myself! But my parents also taught us early the value of money! So, I never bought anything branded in my entire life! Sometimes I think I tend to be too careful with money to the point of counting cents!

UKK - glad you stopped by! I think I can do 1 and 2 pretty well. But being the 'miser' I am, point 3 has to take effort!

Kathie "Moomykin" Yeoh said...

Mike and I were seen through our tertiary education by our parents. His made all the sacrifices for him to study abroad; mine told us right out we could not afford private education, so we had to do the mad test of STPM and get into local unis.

I still feel that having an education is important. It shapes you to be a better person. We have an education plan for the boys, but for me, at the end of the day, they will have to learn to earn their keep. Honestly, I don't mind what they do, as long as...
1. it's an honest living,
2. they are happy about what they do and
3. that they remember God in that.

So they can be a teacher, doctor or an engineer, an environmentalists, a musician, a football player, an actor or char-kueh-teow seller, I still think it's ok.So long as the 3 criteria are met.

Ann said...

Kathie - I agree with you. Education is VERY IMPORTANT. In fact I think STPM for me made me work harder than I have ever worked before!

And point 2 about being happy is really all I was tell my mum when she 'complains' about anyone doing anything differently!