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An inheritance from

Grandpa will help out.

You may have counted on Dad for an education.

Will your child have to count on him too?

Your Dad has been steady as a rock, providing for you financially all through life. He raised you, paid for your tertiary education, gave you a car when you started your first job and even chipped in when you needed to buy a house. So, now that your very own Junior has arrived, will your Senior be expected to help out with the education fees too?


Perhaps he will, if your Dad is among the 30% of Malaysians who aim to leave a fortune to their children1. As for the other 70%, they have other plans. Unlike the days of old, senior citizens of today have different ideas on how they want to spend their savings. More than half prefer to keep their wealth to pursue their own interest and enjoy life after retirement1. Paying for their grandchildren’s education may not feature in their scheme of things.


On the other extreme, seniors may have very little to spare in their old age. It has been reported that up to 90% of EPF members have less than RM100,000 in their account2. As a result, these retirees may turn to their children for financial support  due to inadequate income for their post retirement years.


Who can you count on them?

Kick start you planning and ensure your child’s continued education with a sound education savings plans. If your parents or other relatives contribute towards it, consider it a bonus. Nevertheless, the provision for your child’s education still rests on your shoulders.


Start an education savings plan and make it possible for others to contribute

Let your parents know about the education plan you’ve set up for your child and how they can contribute to it should they desire to do so. Encourage your parents to consider opting for a cash contribution towards their grandchild’s education fund instead of toys. As your child grows older, you can also get your child involved in saving for his or her future.


Auto save so you’ll not miss a contribution

Be on the look out for an education savings plan that allows you to automatically debit the contributions from your credit card or set up a standing instruction linked to your bank account. With automatic payments, there is lesser risk of missing a periodic contribution.


Don’t neglect insurance or Takaful protection

Protection is an important element that may help provide for your child’s education should the unfortunate happen to you or your spouse. In addition, get your Will written as it may help you to continue to provide for, as well as assign support and guardianship for your young children. It may help to ensure that your assets are distributed among family, dependents and other beneficiaries according to your wishes. Your child is looking up to you, just like how you’ve looked up to Dad. Be the steady rock your son or daughter can count on.


Talk to our Relationship Managers and start planning for your child’s future with our wide range of investment and protection plans available for you. Visit your nearest HSBC branch or for more information.



1 HSBC Asian Insurance Monitor, January 2010.

2 EPF Annual Report, 2010.


March 2012