Financial health remains one of the most neglected aspects of personal development in Pakistan. While conversations around income, inflation, and investments are common, structured financial planning and literacy are still missing from most households. As a result, many individuals reach adulthood without understanding basic concepts such as budgeting, saving, compounding, or investing, leading to poor financial decisions and long-term instability.

 

One of the core reasons behind this challenge is the lack of financial literacy at an early age. In Pakistan, money is often treated as a taboo subject for children. We teach them how to earn grades, but not how to manage earnings. This gap creates a generation that learns about money through trial and error, often at a high cost.

 

Financial literacy should begin early, and one of the most effective tools to achieve this is the custodial account. A custodial account allows parents or guardians to invest on behalf of their children while maintaining control until the child reaches maturity. More importantly, it serves as a practical learning platform. Children can observe how money grows, how markets fluctuate, and how disciplined investing over time creates wealth.

 

Small Monthly Discipline. Massive Long-Term Impact.

A monthly SIP of just PKR 10,000, less than the cost of many household expenses, can quietly build substantial wealth when given time.

  • Monthly Investment: PKR 10,000
  • Investment Period: 20 years
  • Total Amount Invested: PKR 24 Lac
  • Expected Annual Return: 17%
  • Future Value: PKR 2.02 Crore
  • Total Earnings: PKR 1.78 Crore

 

What stands out is not the amount invested, but the time factor. Over 70% of the final value comes not from contributions, but from compounding. This is the advantage long-term investors enjoy, and late starters miss.

For parents, this highlights a powerful opportunity. Starting a SIP through a custodial account at an early age can help secure a child’s education, career foundation, or financial independence, without relying on large lump sums later in life.

For individuals, it reinforces a simple truth: 

Introducing children to custodial investment accounts helps them understand real-world financial concepts such as risk, return, patience, and long-term planning. Instead of seeing money as something only to be spent, they learn to view it as a tool that can work for them.

 

At a national level, improving financial literacy is not optional, it is essential. The future of Pakistan’s economy depends not only on policies and institutions, but on financially informed individuals. The earlier we start, the stronger our future becomes.

 

Note: Yasir Mahmood Securities (YMS) is actively facilitating individuals to open custodial accounts, making it easier for parents and guardians to start SIPs for their children and harness the power of long-term compounding.