Family finance: What are the best family investments In 2021

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Pocket money is the best way to give your child a bit of financial freedom, to buy a new pair of shoes, some chocolate or maybe save it up. Many people start a type of account for their kids when they are little.  The money is better to be paid out in cash. Child accounts have the advantage that they are managed as pure credit accounts. But how else can you input money to give them the best shot in life? When it comes to family finance, is it best to invest as a family? Or to give them things directly? Well, the answer really is both. Many families now look to invest via cryptocurrencies. You may have heard of Swyftx crypto exchange for example. These are great ways to invest – because the future after all, is likely to be digital. 

Small gifts of money

Small gifts of money for a birthday are also available in the first few years of life. It used to be put in a savings account. Nowadays, however, you get higher interest rates on a call money account than on a savings book or current account. In principle, it has replaced the savings book and is just as secure.  You can keep the money yourself and give it to them in cash of course too. These small gifts of money still make their life easier and happier. Don’t beat yourself up if you’re struggling to give them a lot of money. Life is difficult and family finance is a priority – food and a warm home comes first.

Regular savings 

If you, grandma and grandpa or someone else want to save money for your child on a regular basis, a deposit is definitely also suitable, but this time with a fund savings plan instead of a one-off investment. You can of course also trade shares via the deposit, we recommend funds or fund savings plans for security reasons and especially for beginners. It is a long-term form of investment and involves less risk than stocks. With a savings plan, you commit to certain funds and pay a fixed amount into them every month. The profits can be reinvested automatically. You can find out how to set up such a savings plan as part of your family finance strategy.

Conclusion

The capital investment in the name of the child means that parents (or grandparents) manage the investments for the little ones until they reach the age of majority, but from a legal point of view the money belongs exclusively to the children. When they reach their 18th birthday, the little ones can do whatever they want with the money. So that the youngsters do not immediately squander the money they have saved over many years, it makes sense to transfer the “assets” to a payout plan shortly before they come of age. This way you can encourage them to spend it on education, maybe driving lessons or perhaps even investment into their business (if they have an idea). The money is then paid out in monthly installments. The parents, or grandparents, can flexibly determine the amount of the installments in advance, making it an important part of your family finance.

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One comment

  1. This is such a great list made easy. I also always buy glue as they are always sticking and my son loved having his own.

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