Financial investment for children
What do you give to children who already have everything? Lasting values for tomorrow! The blinkered view of the return is a bad advisor when choosing the right investment product.
Picture No. 1306, source Postbank
The first day of school – a big event in your child’s life, the first step into the world of "Huge". Also in financial terms, because at the latest at the beginning of school, according to the recommendation of the German Youth Institute, children should receive pocket money regularly to practice using money. This is precisely why the good old passbook is far from out, on the contrary: It is fun to carry saved euros yourself to the bank, to see how it pays interest annually (albeit for a long time only unfortunately), motivates the little ones Saver. At the beginning of school, parents and grandparents want to give generous gifts, but not only for health reasons, sweets to fill the school bag have gone out of fashion today. What valuable alternatives are there for ABC shooters? If you want to invest more than a few savings eggs, you will quickly start to ponder the low interest rate phase. Helma Eckhardt, Postbank’s investment expert, recommends fund or share savings plans. They are a smart choice for anyone who wants to build wealth with regular, constant amounts. With a fund savings plan, the recipients benefit from the average cost effect. It ensures that the fixed monthly savings rates are used to acquire a large number of shares in phases of low share prices and only a few shares in high share prices. How to buy at average price – "short-term fluctuations are thus compensated for over the years", explains Helma Eckhardt. Should interest rates rise again in the future, bank savings plans can be an alternative for conservative investors.
With patience for investment success
Exchange guru André Kostolany already knew: "Buy stocks, take sleeping pills, and stop looking at the papers. After many years you will see: you are rich." There is more than a grain of truth in this pointed statement. Hustling back and forth is not good for any portfolio, which is why it makes sense to lay the foundation for the financial security of young people at an early stage. The second key success factor is the compound interest effect, because if the annual income from the (fund) savings plan is reinvested, they will generate returns in the future. In the first few years this does not really come into play, but after ten or 15 years the effect can be felt – the school bag can finance the former ABC shooter both the driver’s license and the first own car – if, thanks to competent investment advice, the right fund savings plan was selected.
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