Main Objective: Pooling of fund by family members for future financing of children's education
Concept of 3F Source of Fund Management of Fund Disbursement of Fund
Opening of Bank Account
All fund and remittances are to be credited into bank account for the purpose of easy monitoring. The condition of the account are:
1. To be operated jointly by minimum of 2 signatories
2. The account itself generate profit or return to the amount deposited.
3. Saving or Current account or both but preferably syariah-compliance.
Utilisation of Fund
Not all fund to be utilised for educational purposes but must maintain fund sustainability by having RESERVES amount. To simplify:
1. Out of the total fund (cash), an amount of 30% to be kept as RESERVES whilst the rest to be utilised for EDUCATION (45%), INVESTMENT(20%) and 5% for MEDICAL INSURANCE PREMIUM for the family members.
2. The reserve amount to be parked in any type of bank account or Tabong Haji or ASB Or Amanah Raya account which itself generate profit or income.3. Do not park in a fund involving risk such as unit trust or buying of shares.
4. The amount of 45% may be breached only where there is urgent need for the purpose of Educational and Medical or yearly sedeqah
Let say, Total Fund = RM100,000
- 30% for Reserve Amount = RM30,000
- 45% for Education = RM45,000
- 20% for Investment = RM20,000
- 05% for Medical Insurance = RM5,000
Fund Manager
If the family members started to grow bigger, it is wise to appoint 'Fund Manager' (FM) which consist of not less that 3 any family members. The duty of FM is to manage the fund especially the investment and the disbursement of fund. To cope up with the current scenario, FM may review and change the policy of sourcing, managing and disbursement of fund.
Management of Account
Apart from the account statements, the following records to be maintained at all time:
1. Transaction Vouchers
2. Disbursement Register
3. Cash Register
