Raiz Kids from Raiz Invest Malaysia - Referral/Invite Code : https://app.raiz.com.my/invite/4VZ2E3

Raiz Invest Malaysia, the micro savings and micro investing robo advisor app launched a new feature called Raiz Kids. This is feature has already been launched previously by the parent company in Australia. Raiz Kids is an existing in app feature within the Raiz Invest app, no need to download any additional components. From the Raiz App, it can be accessed via Home ➡️ Invest ➡️ Raiz Kids.

Basically Raiz Kids is a subaccount in Raiz Invest where each kid can be represented with 1 subaccount. Savings to Raiz Invest can be allocated into these subaccounts. For example if you got 2 Raiz Kids subaccount KidA and KidB and each child you set allocation to 25% each, if you invest RM10 into your Raiz Invest account, RM2.50 goes to KidA's account and KidB's account respectively.

Here's the Youtube video from Raiz Invest explaining how Raiz Kids works. The time horizon of investing will end until the child's age reaches 18. During the setup of the subaccount (from the app itself) you will have to enter a few parameters like initial investment, child name, child age). You don't actually need to have children to do it, it's just a new feature within the Raiz Invest app to make automating saving for child's future hassle free and more automated. It could also be for grandchildren or non humans (animals) as RaizKids is just an in app feature. The Raiz Kids concept is very similar to a traditional jar savings methodology. The jar savings methodology is an old savings concept where where when one gets an amount of money and this money is place in different amounts into different jars. Each of these jars represent a certain goal (eg kids education, house renovation, donation) and doing it regularly will eventually grow the money in the jar.

Personally I like this feature, it makes savings for kids automated and seamless so we can focus on bringing up children and focus on our careers. However, I feel a more aggressive savings habit is required for saving for children as using just savings alone to save up for a child's future isn't enough. RaizKids feature is going to compliment this financial goal (saving money for children's future) but we still must put more savings towards our children's future.

AIA Malaysia wrote an article some time ago on how much it costs to raise a child in Malaysia. The summary is it takes around RM400,00 -> RM1 million to raise a child and the biggest chunk of spending goes to their education.

https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html