02/03/2026
Parents, Read This Before You Make the Same Money Mistake Many Nigerians Made...
One of my followers asked me:
“My son was gifted some money on his birthday and I want to buy shares for him but don’t know how to go about it… I already opened an account for him where I deposit money monthly, but I don’t want to save this birthday money there. Please help me out, Iking Ferry”
I posted this 5 months ago... let me reshare it again.
Because....
This is a very powerful question, and I must answer it publicly so that every parent, uncle, aunty, and even Mama Ngozi that sells tomatoes in Abakaliki International Market will understand better than 98% of Nigerians, so that Ngozi and her brother future will change forever.
Before i start, let me break your heart…
If your child reaches 20 years and still depends on you to survive, you failed as a parent.
Yes, I said it. It may sound harsh, but let’s be real.
Dangote, Otedola, Adenuga, Abdul Samad Rabiu… none of these men started from zero.
Their parents gave them capital and leverage. What you call “luck” is simply preparation by parents.
But the real question is: what are you preparing for your own children?
Now, let’s come back to this birthday money
First, understand your goal
You don’t want to just “save money” for your child. Saving money in a bank is good, but in Nigeria, inflation will finish the value. ₦100,000 today may buy only half basket of tomatoes in 10 years.
The real secret is: Don’t just save for your children, INVEST for them. That’s how rich families pass wealth across generations.
As a Financial Literacy Advocate, let me tell you a step-by-step guard, how you can copy the rich and build the same future for your children:
Step 1: Open a CSCS (Stockbroking) Account for your Child
Just like adults, children can own shares in Nigeria. You’ll need:
Child’s birth certificate
Passport photograph
Valid ID of the parent/guardian
Utility bill (for address confirmation)
Go to any licensed stockbroker (e.g., Investnaija by Chapel Hill Denhen, Meristem, CardinalStone, Greenwich, ARM, Stanbic IBTC, etc.) and tell them: “I want to open a CSCS account in my child’s name.”
That account is like your child’s Account Number in the stock market, it keeps record of all shares in their name.
Step 2: Choose the Right Shares (Think Long-Term)
For children, avoid gambling or penny stocks. Buy Blue Chip Dividend Stocks, companies that have been around for decades, survived recessions, and keep paying dividends every year.
Examples:
Banks (GTCO, Zenith, Access, UBA, Stanbic)
Cement & Building (Dangote Cement, BUA Cement, Lafarge)
Consumer Goods (Nestle, Nigerian Breweries, Unilever)
These companies may not double overnight, but they will keep paying dividends and growing steadily.
Step 3: Reinvest Dividends (That is one of the Secret Billionaires Use)
Let me tell you this hidden trick: when the company pays dividends every year, don’t use it to buy suya, or a*o ebi. Reinvest it to buy more shares.
That way, the money compounds quietly.
Example with simple numbers:
You buy ₦100,000 worth of Zenith Bank shares for your child.
Zenith pays ₦12,000 dividend after 1 year.
Instead of cashing out, you reinvest that ₦12,000 to buy more Zenith shares.
Next year, dividend becomes ₦14,500… you reinvest again.
By the time your child is 18, those shares will have multiplied in value without you lifting a finger.
Don't focus only on Stock, diversify your child's investment portfolio to minimize risk.
Let’s say your child was gifted ₦100,000.
Here’s a simple allocation plan Examples:
Allocate 40% (₦40,000) to Money Market Mutual Funds
This is safe, like putting money in a high-interest savings account.
You can get about 10–15% returns yearly (many MMF funds have paid over 20% return this year).
Example: ₦40,000 can grow to about ₦46,000 in a year.
Allocate 30% (₦30,000) to Blue Chip Stocks
These are big, trusted companies listed on the Nigerian Stock Exchange (companies like GTCO, Dangote Cement, Nestle, Zenith Bank).
Their value grows over time and they pay dividends.
Example: ₦30,000 invested in GTCO at ₦30/share = 1,000 shares. If they pay ₦3 dividend, you’ll get ₦3,000 cash. If the share price rises to ₦40, those same shares are worth ₦40,000.
Allocate 10% (₦10,000) to Equity Mutual Funds
This is like buying a basket of different company shares together, managed by professional Funds Managers.
Less risk than buying just one stock.
Example: ₦10,000 can turn into ₦11,500–₦16,000 depending on market performance.
Allocate 10% (₦10,000) to Bonds
Government or corporate bonds. They pay fixed interest yearly.
Example: A ₦10,000 bond at 12% gives you ₦1,200 every year.
Allocate 10% (₦10,000) to Treasury Bills
Super safe, government-backed.
Example: ₦10,000 in a 1-year treasury bill at 8% = ₦10,800 at maturity.
To continue the legacy, this one is very Important:
Don't forget to teach your child about money and Ownership Early.
Imagine your 12-year-old telling friends: “I own part of Dangote Cement.”
That confidence alone is priceless. That mindset removes poverty permanently.
While other children are shouting “Mummy buy me iPhone,” your child is learning: “If I buy shares now, my money will work for me forever.”
Don’t Stop at Birthday Gifts
Birthday money is just the starting point. Imagine if you commit ₦5,000–₦10,000 monthly into that same stock account from now till your child turns 20.
Let’s do a simple math:
₦10,000 monthly invested at 15% average growth rate = ₦9.9 Million in 20 years.
If you go aggressive (20–25% yearly) through stocks + reinvestment, it can grow to ₦30–₦50 Million+ in 20 years.
Tell me: if your child had ₦50 Million waiting at 20 years, will they be begging for NYSC allowee?
Don't forget, I intentionally reduce the ROI of each Assets that I use in my Examples, so that your expectations will not be too high.
Also Remember that, you must not start with 10k monthly, you can do 5k monthly, you can as well do 1k monthly.
Yes, that ₦1,000 you burn everyday on data subscription watching Tiktok videos can save your child future.
Imagine Mama Ngozi who sells tomatoes in Ajah. Every week, instead of wasting ₦1,000 on a*o-ebi she doesn’t need, she buys shares for Ngozi and her son.
After 15 years, that boy and Ngozi is not begging anybody for school fees or job connections.
Why?
Because Mama Ngozi turned small-small investments into millions.
That’s exactly what you want to do for your child.
To round this up.
Here's my honest advice to all parents:
Stop raising your children emotionally only.
Food, clothes, school fees is not enough. Build them like you’re building a company: capital + assets + financial literacy.
That birthday money should not die in a savings account where inflation will eat it. Put it into shares, mutual funds, treasury bills, assets that multiply.
If you start now, by the time your child is 20, they will be financially independent… while other people’s children are still depending on pocket money.
Parents, don’t just give your children love.
Give them leverage.
My name is Iking Ferry, a Financial Literacy Advocate, Founder of Pulseford Business School
I’m on a mission to raise 1 Million financially free Nigerians via Fokona by teaching the truth the elites pay millions to learn.
