March is one of the most important months for Filipinos. This is the time when most graduation ceremonies are held. For many parents and their children, graduation (especially from college) marks a milestone.
Along with the usual celebration, parents also take this opportunity to give their children a reward in the form of gifts for doing well in their studies. Some of the popular choices are gadgets like high-end phones, cars, or even travel sponsorship.
But enabling your children to have financial independence is the most meaningful gift of all. This would prepare them for their future, let them to live comfortably, and even allow them to buy their own home.
Here are seven smart alternative gifts you can give.
1. Open a high-earning savings account.
Instead of cold cash, put it in a time deposit so that your children won’t be able to spend the money. A time deposit is a type of savings that is set for a fixed term and can only be withdrawn when it reaches the maturity period. If the depositor withdraws the full amount prematurely, it is subject to penalties, which will lessen the value of the fund.
While you’re on it, set the terms for a longer period for the money to earn more. There are many banks in the Philippines that offer a time deposit account. Find which one would offer the best interest rate.
2. Set up a financial investment.
Remember how Filipino parents would say,
Walang yayaman sa pagiging empleyado?
It is important to teach your child how to invest their money wisely and don’t just depend on their monthly income. Jobs can be unpredictable. To prevent your children from being financially unstable, provide them with other means to earn money. Some of the options you can choose from include:
- Certificate of deposits
- Stocks
- Bonds
- Mutual funds
Make sure to educate them on how to handle these investments. Or you can do the following suggestion below to go all the way.
3. Hire a financial advisor.
Take it to the next level by hiring a financial advisor who will guide your child, help handle their finances, and look for ways on how to invest their money. This will help teach them how to manage their money wisely and make sound financial decisions in the future. Make sure you hire a professional individual so that your child will be well taken care of.
If your child is interested in reading, give them books about guide to investment, managing finances, how to save money and more.
4. Hand over a part of the family business, or give a starter fund.
Some Filipino parents let their child manage part of the family business after college by making them the manager of a branch office or restaurant. Later on, you can give it as pamana.
On the other hand, you can provide a starter fund, if your child wants to pursue a different business. This is a great option for parents who have entrepreneurial kids. By providing them the capital to launch a business, your child doesn’t have to take out loans from banks or other lending institutions.
5. Gift them something they can use for their entire career.
Is your child planning to pursue a career in photography? You can give a professional camera that would allow them to take professional looking photos, sign them up for a photography class, or even get them the latest editing software. How about professional knives plus monogrammed apron for your newly minted chef? Anything that your child can use for their new job would be a great help.
6. Invest in an interest-earning or flexible insurance policy.
The types of insurance policies offered here in the Philippines have long improved. Aside from the traditional life policies wherein your family will benefit only after your death, insurance companies now have investment-linked insurances.
Getting this insurance will give your child life insurance coverage, and at the same time, a part of it will be allotted to investment funds. Some insurance companies allow partial withdrawals. The interest earned from this type of insurance can be used to help your children start their own business or buy a home.
7. Provide a down payment for their own home.
For the more financially capable parents, giving your kid their own space is one of the most heartwarming gifts. You don’t even have to pay for the entire amount, as providing the down payment is more than enough. Buying a real estate property is an expensive purchase and it comes with additional costs.
But if you’re feeling more generous, you can add in a couple of month’s worth of mortgage payments as well. With the high costs of living in Metro Manila, they can cross off rent in their monthly expenses. At the end of the day, many people aspire to have a home, and by gifting this you’re helping your kid reach that dream.
It’s never too early to start
Your children’s future is important. What better way to help them than to give them a significant gift they can use in life. Remember, every peso you set aside for their future will make a lot of difference. If you have the capacity to earn and set something aside for them now, these gifts may be the best alternative.
Thinking of buying a home for your children as a gift? Explore our condominiums in Makati, Taguig, and more.
