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Do you want to make provisions for your baby so that they can have a great start to a self-determined future later? Financial expert Larissa Kravitz knows what to look out for, but also what to avoid.
When the next generation is announced, one also thinks about their future. Of course, you only want the very best for this and, above all, you can support it financially, as financial expert Larissa Kravitz knows.
I recommend 15 years or more
Which predispositions are best for my baby?
Kravitz: Since it can be assumed that the baby will not need the money for the next 15 to 20 years, investments that promise high returns but are also subject to temporary fluctuations are suitable. There we are with broadly diversified equity investments (caution: no individual stocks), real estate and gold.
Which is better: a larger sum one-off, for example invested in a fund, or put aside something for the child every month?
Kravitz: A combination of both is ideal, i.e. a starting sum and regular, ideally monthly, additional payments. ETFs (exchange-traded passively managed funds) are generally better than funds. However, one should not only invest in securities, but also buy gold for the child, for example. The latter is a particularly good gift. Instead of a toy, relatives might prefer to bring a gold coin or a small gold bar.
How do you create a cushion for the child despite a relatively low income?
Kravitz: In two ways: The first option is a fund or ETF savings plan, in which you pay a small sum of 30 euros a month. The second option is to ask friends and relatives to invest in a child's financial future instead of a toy or clothing on a birthday or a celebration like Christmas.
For what period of time should I at least set an assessment so that it makes sense?
Kravitz: If we assume babies and small children, then 15 years or more because they won't need the money until then. It is also important how to deal with it when the child is an adult. My tip: You shouldn't give the child the entire sum at once, but a part first so that they can learn to use it well.
What should I definitely avoid when taking care of my child?
Kravitz: High fees! Because unfortunately there are products that have such high fees that you get back what you paid in. I strongly advise against that. Therefore, always ask about it first before deciding on an investment.
»“Do not give the child all the savings at once, but rather one part at a time.”- Larissa Kravitz, financial expert«
The provision for the child is planned for the long term. What can I do if I slide into a financial crisis and payments are hardly possible?
Kravitz: Liquid investments that can be traded daily, i.e. ETFs and funds or gold, offer the greatest flexibility. You are not tied to the long term, and if you need the money, then they can be sold faster than, say, a property. If you use ETF or gold savings plans, you can vary the savings amount depending on your financial possibilities.
Which savings plan for the offspring is suitable if you have two or more children?
Kravitz: If you have several children, I recommend setting up the same savings plans for both of them and then dividing them up so that neither child feels disadvantaged. Depending on how much money you have available each month, you can, for example, start with a global market ETF and add gold.
Do you have any personal tips for your customers?
Kravitz: Yes, buy your kids shares in Disney and gaming companies like Nintendo, Ubisoft and Activision Blizzard. Why? Children are extremely easy to influence through marketing. If you buy them shares in these companies, you can show them the other side of the coin. Computer game addiction is sometimes a huge problem, especially with boys. If you buy gaming shares for them, they can say to their friends at school: "Just play hard, because the more you play, the more I earn." Then the children realize: You can play if you do it skillfully To bring money.
