Find the best balance between saving and investing
Always consider the future. Especially when it concerns your children. In no time at all, they have traded daycare for college. Of course, this involves costs. Fortunately, you can start building up assets for this now. This way, you will have a pot later to help your children financially.
But how can you best build up assets? You can choose to save or to invest. The best choice is different for each person. In this article you can read the considerations between saving and investing.
Saving: definitely
From driver’s license to world trip. From study to student room. Your little one will probably have big plans soon. And then a piggy bank is handy. Fortunately, you can easily arrange that. Calculate what you need approximately and put money aside for this purpose in your savings account. You can also open a new savings account for your child, such as the KinderToekomst Savings Account. Every euro you put aside now will certainly come in handy in a few years. It’s just a shame that the savings interest rates are so low at the moment. That means that your savings are virtually stagnant.
Investing can make more possible
Are you prepared to take more risk? And do you want to get some of your savings moving? Then investing might be an interesting option. The returns of the past few years show that investing yielded more on average than saving. On paper, it is therefore an interesting way to build up assets. Remember that past returns are no guarantee for the future. And that investing often only really yields something in the long term.
When you invest, there is a chance that you will lose (part of) your investment. Therefore, only use money that you can afford to lose and always keep a buffer. You can start with Guided Investing from as little as €50. You determine your own goal, how long you invest, how much you invest and how aggressively/defensively you use your money. You will be guided online in making these choices. This makes it a popular product among novice investors.
The best balance between saving and investing
Of course you want the best for your child(ren). That is why it is important that you make responsible decisions. Do you want to put some of your money into motion? Then look for the best balance between saving and investing. If you are still unsure whether investing suits you, you can start with a small amount. For example, choose one of the Profile Funds of Guided Investing, where you set goals in advance and choose how much risk you want to take to achieve them. Don’t like it? Then you can stop at any time.
What is the best balance?
Of course you want the best for your child(ren). That is why it is important to make well-considered decisions. Do you only want to put a part of your money into motion? Then the balance between saving and investing is important. If you are still unsure whether investing suits you, you can start with a small amount. You can start by investing in funds with lower risks, to slowly try to find out whether you are prepared to invest more.
Start investing for your child(ren)
Are you deciding to invest for your child? Then first think carefully about the following matters. What do you already know about investing and how much time do you want to invest? Do you accept the costs and risks? And do you know that you can lose (part of) your invested money? And suppose you lose money, do you have a (savings) buffer and is this buffer still large enough to absorb unforeseen costs? In addition to the fact that many of these questions can only be answered by yourself. The necessary information can be found in the knowledge base .
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