Teach Your Kids to Spend, Save and Share

Recently, I attended a parenting course organized by my neighborhood community center. One of the topic is to teach your children about financial literacy. Just like me, I believe many parents out there does not know where to start when it comes to teaching your children about money management. Did you ever experience your child spending all their allowances at school and ask you for more money to buy additional stuff such as Pokemon cards?

You can try this simple technique that I have learnt from the course, summarized in three words: Spend, Save and Share. These are three broad techniques which you can use to remind your child to make choices with their money. You can make the above money jars using recycled containers (PS: I used the empty containers after finishing up the Chinese New Year goodies).

With the money jars, you can show your child how to allocate the given allowance into different containers and also help them understand what the purpose of each container is. Here are the three categories:

#1 Spend

Buy things that you need and want now.

#2 Save

Set money aside to buy things in the future.

#3 Share

Donate money to help people or buy something to share with your siblings or friends.

April 2018 Singapore Savings Bonds is 2.31%

The effective interest rate for April 2018 Singapore Savings Bonds gives you an effective interest of 2.31% if you hold it for 10 years. That will be a total of S$2,340 of interest collected if you purchase S$10,000 of Singapore Savings Bonds now.

Here is a previous post I did to compare the returns of the Singapore Savings Bonds against our normal savings account and traditional Time Fixed Deposits (Singapore Savings Bond versus Savings Account versus Fixed Deposits). Overall, the Singapore Savings Bonds emerge as the winner with the highest returns. Of course, the returns may not be fantastic if you compare against stocks or other investments of higher risk. But the Singapore Savings Bonds serves well as a contingency fund and as a war chest as well.

I have bought the Singapore Savings Bonds in October 2015 and September 2017 where the effective interest rate is 2.63% and 2.12% respectively. The best thing about Singapore Savings Bonds is that you can sell the existing bond of lower effective interest anytime and swap it with another one as it has no lock in period.

If you are like me where I am on a lookout for a good steal in the stock market but still have not spotted any, you can consider parking your money with Singapore Savings Bonds and collect interest while you wait for the next stock market crash!

Who is The Substantial Shareholder Exiting Boustead?

Last Friday, 9th March 2018, the share price of Boustead plunged to S$0.76. The Company took opportunity and purchased 2,220,400 shares by way of market acquisition as part of its share buy-back programme.  Today, the Company purchased a further 26,705,100 shares by way of market acquisition.

Today, Boustead Singapore said that a substantial shareholder has expressed his intention to make an exit. I am curious who this substantial shareholder is. From FY2017 annual report, the below shows the twenty largest shareholders of Boustead.

A quick google did not show any sudden bad news hitting Boustead. What a steal at S$0.76! At the point of writing this post, the share price of Boustead has recovered back up to S$0.80.