All in the family: 3 entrepreneurs today who found success thanks to support from elders
- Economic slump caused by Covid-19 shows need for Hongkongers to build up cash savings and provide financial security for future generations
- Property developer Rita Tong Liu, fashion brand founder Rachel Lim and drone maker Frank Wang able to launch companies with funds from families
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The world we live in is ever-changing and full of uncertainties, making it more important than ever to plan for the future.
As the coronavirus disease, Covid-19, continues to spread, the global economy is expected to plunge into the worst recession since the second world war, according to a June report by the World Bank.
Hong Kong is already feeling the pinch. The city’s gross domestic product – a common indicator of the health of an economy – fell by 9 per cent in the second quarter from a year earlier, according to government statistics. Meanwhile, the unemployment rate has more than doubled in the past year, reaching 6.1 per cent in August.
A sudden economic downturn can often put pressure on families with young children. The economic impact of Covid-19 could undermine children‘s long-term access to health care or education, says a study published in August by Unicef, the UN Children’s Fund.
Hong Kong is also one of the world’s most expensive cities in which to live and raise a child. The Bauhinia Foundation Research Centre, a private think tank in the city, estimated that the average cost of raising a child in Hong Kong until the time they graduate from university can be as high as HK$5.5 million (US$709,650). This means that accumulating wealth could be essential to help safeguard the future of the next generations.