29 Jul Anak oh Anak…
Anak oh Anak !
Anak adalah anugerah dan rezki kepada sesebuah keluarga. Oleh itu pepatah melayu banyak menyifatkan “anak anugerah tak ternilai dari illahi” or anak itu ibarat asset.
As with most asset, they comprise investments. And as with most investments, we have to start with an initial sum, add more amounts gradually and allow it to grow over time. With anak-anak, the sum invested (spent) from age 0 to 17 is estimated at RM317,000 per child in main cities or around RM150,000 to RM200,000 per child in less urban setting. Quite a sum huh ? Then there’s college or universities which many parents mengeluh and kena ikat perut.
That’s why, good financial planning advices individual to start their financial plans in their early 30s. Latest pun age 40 lah, memandangkan retirement age around 60 and mortality rate around 80 [20 years of savings between age 40 to 60, for another 20 years of utilization between age 60 to 80].
From the start of working life, around early 20s, it is wise to apportion income as in Diagram 1 – “Rule 40-40-20”.
Memang susah nak follow, memandangkan lifestyle financial trend these days are challenge with inflation (harga naik) pressures especially house and food prices, peer pressure on the vehicle we drive, sifat tamak membeli makan especially during Ramadhan, fashion trends and desire for beautiful house décor inside out. With Retail Therapy as a favorite past time (lepak at shopping malls on weekends), hmmmm memang lah banyak temptation.
These days family are smaller in size, some say it’s the lower fertility rate. Match this against more income per family, creates higher disposal income per family. Unfortunately, most parents divert more of the income to children education than their own retirement plans. Gone are the days where there are plenty of scholarships to fund academically clever children. These days, the crème-de la crème gets the scholarship. The worst results get government aid, or channeled to vocational training and given second chances. What about those average ones ? The masses ?
Masa dulu-dulu the parents of Gen X, tak perlu risau sangat tentang masuk university as scholarship and subsidi aplenty. And we are our parent’s Retireent Plan as we still provide for them. Sebab tu we become the Sandwich Generation – have to provide for our parents and our children. Parents expect a lot from us. Our children think its their birth right that they get tech toys and hi tech gadgets. Our parents had the “economies of scale” as expenses can be shared amongst many children they have – hand-me-down toys, books and clothes. We have less of “economies of scale”.
So, what are we to do ? We need more income – work more hours, get a salary increment or do part-time business. Not possible ? The alternative would be to cut down on spending – differentiate between “Need” and “Want”, be frugal in spending, delay your purchases and clear personal debts as fast possible.