KUALA LUMPUR: Parents can be effective role models for their children by displaying good financial behaviour, especially during the Covid-19 health crisis, which has taught many lessons on priorities, goals and limitations in life.
If parents want their children to develop good spending and saving habits, they need to see them making smart spending and saving choices. They have to practise what they preach with consistency in terms of early financial planning.
On this note, product development manager Mohd Azhar Abdullah, 48, says that he selected National Higher Education Fund Corporation (PTPTN) to highlight the importance of discipline in saving habits and saving for the educational needs of his two children.
“I practise self-discipline to reflect on the importance of the savings habits for future tertiary education. I transfer RM300 each for my two children’s National Education Savings Scheme (Simpan SSPN) accounts every month.
“This has inculcated the savings habits among my kids,” he said.
Mohd Azhar opened two Nilam packages under the Simpan SSPN Plus this year, during the launch of PTPTN’s new product for his 19-year-old son, Muhammad Danial Harith, and 16-year-old daughter, Nur Diana Syaurah.
While he has an existing Simpan SSPN Prime package (previously known as SSPN-i), Mohd Azhar decided to open the Simpan SSPN Plus accounts due to the benefits and incentives it offers.
Simpan SSPN Plus is a continuation of SSPN-i Plus – introduced on June 8, 2015 – that has been improved and given a new look with various privileges and benefits for depositors.
Simpan SSPN Plus offers six attractive packages that are affordable for parents, ranging from as low as RM30 and up to RM500 monthly and there is no need for a medical check-up.
Depositors will be able to enjoy various privileges and benefits, including takaful protection up to RM1.2mil, terminal illness coverage up to RM200,000, up to RM10,000 for corpse delivery service, a maximum of RM3,000 for outpatient treatment due to accidents and protection up to age of 69.
“It is also very easy to save using Simpan SSPN, which is a syariah-compliant savings plan for education. Depositors will be able to enjoy privileges such as tax relief of up to RM8,000, takaful coverage and a competitive dividend which is advantageous for them.
“I want to save early as education is very costly. If we start early, we will not have panic attacks when we have to send our children for their higher education. This will ensure you have a peace of mind in preparation for their tertiary education later,” he explained.His son Muhammad Danial is currently studying electrical power engineering degree course at Universiti Tenaga Nasional.
On top of that, he said that he also won a Cabutan WOW! SSPN-i Plus draw for RM3,000 two years ago. “This was an additional bonus for Simpan SSPN,” he added.
On his advice, Mohd Azhar said, “Do not hesitate to save at Simpan SSPN as it is a financial guarantee for your children’s further studies.”
Kantharuben Nagamuthu, 40, who is a recovery services department manager, said that he opened two Simpan SSPN Prime accounts for his two girls in August this year.
“I opened the Simpan SSPN Prime account with an initial RM20 deposit, and later added RM4,000 for each girl at the PTPTN branch at Amcorp Mall here.
“I want to teach them about early savings, so that they don’t have to apply for a study loan or it could be very minimal when they need to further study at any institutions of higher learning. I don’t want them to have the burden of paying debts later.”
Besides that, he has confidence in Simpan SSPN, as he says: “It is a safe savings. It is a good product that is affordable for communities from all walks of life.”
Kantharuben said that he and his wife, credit control executive Jeevamoney James,34, had taught their daughters, Kaveeyashree, eight and Hoviyasri, six, the importance of saving habits by allowing them to earn rewards and learn smart spending.
“If they complete their school and tuition homework and do not receive any complaints from their teachers, they will earn RM10 each week as a bonus, while each page of homework done well earns them an additional of RM1 daily. They will get between RM70 and RM100 per month.
They have to divide the money later for various purposes, such as saving a portion of this money for their Simpan SSPN to be deposited by the end of each year, as well as buying stationary.
“As for the angpow money that they receive from their uncles and aunties during festive seasons, they can keep it as another fund and use it for shopping,” he added.