You've heard so much about them that you can't ignore them any longer. Especially as you now see them just about everywhere… except on your roof! Now is the time to take a more serious interest, for the sake of our planet!
Why you should switch from saving to investing for your children
"It’s a fact that most of our customers open a savings account for their children at birth. And being a young father myself, I perfectly understand that this is very convenient to do so, in order to permit family and friends to easily put some money on it at any occasion. The first months with a baby are indeed not the best ones to think about finance. However, let me explain why they are actually the right ones to choose an alternative, smarter way of saving money."
First of all, do you remember what you were able to buy with EUR 20 back in 2002, when the euro was launched? Today, the purchasing power of these EUR 20 is significantly lower because prices have gone up a lot for most goods. Knowing that, instead of thinking of the amount of money your child will get, think of what he will be able to buy with the money you saved for him so far.
Think about it: on one side, kids are growing up very quickly, that is for sure. On the other side, parents tend to save money for their children until they are 18 years old or even longer, so for several years, they are putting money on the side.
Don’t you think that in this time period, there is something smarter to do regarding your savings options?
To maintain the value of your savings, it's a good idea to diversify into a number of different areas: traditional savings, term deposits and investments in the financial markets can provide long-term returns.
Investing in the stock market is not typically a short-term decision: the investment should be considered over the long term, with the likelihood that the investments you buy today will be worth more when you decide to sell.
With this in mind, it may be worth looking at the average performance of the S&P 500 index over 5, 10, 20 and 30 years to gain a better understanding of market dynamics.
Investing is always a good idea, but choosing the right type of investment depends on the economic context and your specific situation. So what should you invest in? How to choose the right asset? You do not yet feel comfortable enough to make this decision?