Edited by NormanJB at 8-1-2018 09:37 AM
When you are a parent, the primary concern mostly revolves around matters of providing for your kids. From the food you put on the table, the clothes they wear, an education, and even shelter; everything costs money.
These days, providing an education for their children often ends up at the top of parents’ financial to-do list of expenditures that take out the biggest chunk of their earnings, and even this is not enough.
Most times, there is isn’t enough to cover all the education costs. In fact, 410,500 Malaysians who borrowed money from the National Higher Education Fund Corporation (PTPTN) have yet to repay a single sen, according to the Higher Education Ministry.
Higher Education Minister Datuk Seri Idris Jusoh said a total of RM6.84 billion was owed by borrowers, of which 410,500 of them had not paid a single sen, NST reports.
Pic: NST
With the rising cost of living, it’s understandable how paying back a significant amount in education loans can be a challenge. So, the lesson here? Invest early and often. We know it’s hard to get started early, but if you can manage it, you will be set for the rest of your life.
On that note, it was announced by Prime Minister Datuk Seri Najib Razak in Budget 2018 that all Malaysians born between January 1, 2018 to 2022 will each be gifted RM200 worth of unit trusts in Amanah Saham Bumiputera (ASB) or Amanah Saham 1Malaysia (AS1M).
ADAM50 which stands for Amanah Dana Anak Malaysia 2050 is an initiative specially for Malaysian children, a trust fund administered by Permodalan Nasional Berhad (PNB).
The collaboration of PNB and the government in ADAM50 is aimed at inculcating a habit of saving and investing among Malaysians.
To many Malaysians, the full implication of being given RM200 in unit trust investments is not fully understood. What happens when you put away a mere RM200 for a child at birth and leave it in a unit trust vehicle?
With that thought in mind, Malaysian Digest sought to gauge the level of awareness among Malaysians who are about to become new parents this year.
“It Is The Beginning Of Financial Planning For Children”
As reported in local media, ADAM50 is another initiative under TN50 (Transformasi Nasional 2050) to get parents started in investing in their children’s education early whereby, the scheme will run from 2018 to 2022 with the total amount to RM560 million and will benefit some 2.8 million Malaysian babies. However, the amount can only be withdrawn when the child turns 18.
This unit trust scheme will be credited into the Amanah Saham Bumiputera (ASB) account for bumiputera babies or Amanah Saham 1Malaysia (AS1M) for non-bumiputera babies when they register at Amanah Saham Nasional Berhad (ASNB) branches or appointed agents.
PNB president and chief executive officer Datuk Abdul Rahman Ahmad said he wished for parents to get excited about the scheme and do their best to participate as well.
“The scheme also meant to teach parents about investment culture and encourage them to invest in their children’s future. We encourage all parents whose children are eligible for the scheme to participate,” he said to local media.
For first-time parent, Soondoos, said she does see the benefit of ADAM50 for her child as it can be used to invest in his future education.
“Besides, who wouldn’t want that free RM200 to start a child’s savings? It’s a good start for anyone having a baby,” she observed.
For 29-year-old mother Mastura, she feels grateful for the scheme for it would benefit her son’s future vastly for he will have his own savings account the moment he is born.
“I am glad for him as this scheme can benefit him in the end. For example, he won’t be burdened by the weights of a study loan as I look forward to building this savings account with him,” she said.
 Pic: Tomorrow Makers
Petty, 31, who is set to give birth this coming April said ADAM50 would be another means of support for her newborn daughter.
“Being a mother of two, I am always concerned on how can I contribute further for the well-being of my children. The scheme will act as another financial safety net she can rely on in the future,” she gratefully said.
In this writer’s opinion, ADAM50 acts as a beacon of hope for it ignites an initiative that can be actively participated by our future generation. ADAM50 does not only promote a saving and investing culture among Malaysian, but it also provides exposure to start saving for their future’s sake. For instance, creating an ASNB account as it brings huge potential for our savings to grow productively.
Also, bear in mind, ADAM50 should not be deemed as a tactic by the government to fish for votes but acts as an assistance for parents and their children’s financial planning, reminded Sabah Resource Development and Information Technology assistant minister Hamisa Samat.
“So, when the government is giving the RM200 aid, it is the beginning of financial planning for children to have savings under their own names,” she said, adding how it was the responsibility of the parents as trustees not to abuse the children's funds but to help increase their savings.
So how can this 200 free incentive units as initial capital by the government be beneficial to us? Malaysian Digest spoke to several unit trusts consultants to help Malaysians realise the full benefits of ADAM50
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Post time 8-1-2018 09:36 AM
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