Invest money for children: savings book or shares?
Parents usually start looking for investment opportunities for their offspring after the birth of their child. Up to the age of majority, a child costs around 125,000 euros according to our calculation. After graduating from school, you have to finance your studies or training as well as your first home and car. In times of low interest rates, it is not easy to find the right form of investment.
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Savings accounts generate little return
Parents or grandparents should start saving early enough to give the children the necessary financial support. In addition, the investment for children must be as safe as possible. The still popular savings accounts fall under the statutory deposit guarantee scheme, but only achieve low returns. The money saved usually loses real value. For this reason, investment opportunities that involve a certain risk but generate significantly higher returns should also be considered. With a mix of high-return and low-risk investments, the children’s financial future can be better secured. Sufficient risk diversification is recommended to protect against losses. For research, we recommend independent and reputable sources such as www.gevestor.de, www.finanztip.de or also www.handelsblatt.com. Receiving valuable information makes it much easier for children to make the right investment. Traditional investment options include fixed or overnight accounts. Before a certain amount is paid in monthly, you should look for an offer with good interest rates. However, an investment in call money accounts is not really worthwhile even in this low interest rate phase. Interest rates quickly drop to below 0.5%.