Malaysian parents are increasingly diversifying savings strategies for their children by combining structured savings schemes, bank accounts and alternative assets to balance liquidity and long-term financial growth.
Education-focused instruments such as SSPN remain among the preferred options for future education planning, while Amanah Saham Bumiputera (ASB) and other Amanah Saham Nasional Berhad funds continue to attract parents seeking relatively stable long-term returns.
Many families are also opening dedicated children’s savings accounts with banks such as Malayan Banking Berhad, CIMB Group and Bank Islam Malaysia Berhad to encourage early saving habits and provide easier access to emergency funds.
Among Muslim households, savings accounts with Lembaga Tabung Haji remain a popular choice due to their hibah returns and long-term savings benefits.
Some parents are also turning to takaful and insurance-linked savings plans to combine financial protection with education funding, although these products typically require longer-term commitments.
In states such as Kelantan, physical assets such as gold bars are commonly given to children as gifts, reflecting a preference for tangible stores of value that can be retained over time and passed down across generations.
The growing mix of savings approaches reflects a broader trend among Malaysian households to adopt more structured and diversified financial planning strategies amid rising living costs and increasing awareness of long-term financial security.
Licensed financial planner Dr Nursyahinaz Hashim said mothers with lower financial exposure generally prefer safer and more familiar financial instruments such as ASB, Tabung Haji, SSPN and conventional savings accounts as these are perceived to be more stable and lower risk.
“The choice often depends on their level of financial literacy, family upbringing, peer influence and work exposure,” she said.
Dr Nursyahinaz noted that financially literate mothers are more likely to diversify into investment products such as unit trusts, stocks, gold investments and investment-linked instruments to potentially generate stronger long-term returns.
She added that social media and financial influencers are also increasingly shaping parents’ financial behaviour, although consumers should verify the credibility of investment advice before making financial decisions.
“Parents with lower risk appetite usually prioritise safety and liquidity, while those with stronger financial knowledge may focus more on long-term growth and compounding returns,” she said.
Dr Nursyahinaz also encouraged parents to begin building education funds as early as possible, ideally from pregnancy or the newborn stage, to maximise the benefits of compound interest.
“The earlier they begin, the more they can reduce the future financial burden of higher education through the power of compounding,” she added.
