Savings portfolio: the best alternative to savings accounts for kids

Savings portfolio and savings account for children: two concepts that have currently gained great popularity in the world of investments.

With the advancement of technology, more and more children are showing interest in the financial sector. This is due, in part, to the great exposure they have to digital tools and educational resources that allow them to delve into these topics from an early age.

For parents, in fact, it has always been a priority to ensure the financial well-being of their children, and encouraging the habit of saving is one of the most effective ways to achieve this. However, the way in which children’s savings is approached has evolved, especially with the emergence of more modern options, such as the savings portfolio, which competes with traditional savings accounts for children.

What is a children’s savings account and why is it important?

A savings account for children is a financial product that allows for regular deposits and access to money when needed. This instrument helps children begin to build capital and establish the habit of saving from an early age. It is an option that more and more children and teenagers choose to earn money every day.

Beyond encouraging the habit of saving, a savings account for children promotes financial education by offering them a first experience in managing their money. In other words, it allows them to understand how capital growth works, providing a basis for developing financial skills and making wise decisions regarding their money as they grow.

On the other hand, a savings account for children directly impacts the future economic stability of the minor. By having savings and understanding how compound interest works, the child begins to develop a long-term vision on managing their finances.

A particularity of the savings account for children is the possibility of earning interest on the money deposited, which generates returns and makes the capital grow over time without the need for additional efforts. This concept is key to teaching children how their money can be put to good use.

With the rise of new technologies, parents are now choosing a savings portfolio as a savings account for children, taking advantage of the benefits offered by these tools in terms of flexibility, diversification and capital growth.

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Benefits of choosing a savings portfolio as a savings account for children

Superior long-term growth potential

One of the main reasons to opt for a savings portfolio as an alternative to a children’s savings account is its ability to generate higher returns over time.
While traditional savings accounts generally offer very low interest rates, savings portfolios allow investors to access financial instruments with higher returns, such as mutual funds, ETFs (exchange-traded funds) and other diversified investment products.
In this way, not only is the growth of the initial capital maximized, but the power of compound interest is also leveraged over a long-term horizon, ensuring greater development of savings over time.

Less commissions

Savings accounts, offered by traditional banks, are often subject to fees and administration charges. In contrast, savings portfolios such as those offered by investment platforms have lower costs, allowing more of the money invested to be put towards investment growth.

Diversify to reduce risk

Savings portfolios are made up of a variety of investment instruments, which helps to diversify risk, minimizing the impact of market fluctuations on any individual investment. In contrast, savings accounts for children concentrate all their support on a single type of asset: the money deposited.

Ease of management

Savings portfolios management is much simpler, as there are investment platforms that allow investors to efficiently manage their assets, adapting to changing needs and short, medium and long-term goals. The same does not occur with traditional savings accounts for children, where management can be more complex, especially if parents do not have experience in finance or if banking options are not so accessible.

Access to better investment products

One of the great advantages of savings portfolios over children’s savings accounts is the wide range of investment options they offer. While traditional savings accounts are limited to simple deposits with low interest rates, savings portfolios allow access to more sophisticated and profitable products, such as mutual funds, ETFs (exchange-traded funds), corporate bonds and, in some cases, stocks.

These options not only diversify the portfolio, but also offer the possibility of customizing investments according to financial objectives and the desired risk profile. For example, if you want a conservative approach, you can lean towards low-risk bonds or funds. On the other hand, for those looking for a higher return, ETFs or index funds can be the ideal choice.

Flexibility to adapt portfolios according to risk profile and financial goals

One of the main advantages of savings portfolios is that they can be customized. Parents can design these portfolios to fit their children’s risk profile and their short-, medium-, and long-term financial goals.

For example, if the goal is to save for a college education within 10 or 15 years, one can opt for a moderate or aggressive approach to investments, prioritizing assets with greater return potential, such as index funds or stocks. On the other hand, if the goals are more immediate, such as financing extracurricular activities or camps, a conservative portfolio with a predominance of bonds and low-risk funds may be the right choice.
This flexibility is something that traditional savings accounts do not offer, since investment options are limited to low-risk products, which reduces growth potential.

inbestMe Kids Account: The savings portfolio that makes children’s savings grow

If you want your child to earn money from now on and have a secure future, the inbestMe Kids Account is more than just a savings tool; it is an investment portfolio designed specifically for minors, where they are the account holders and an adult (mother, father or legal guardian) acts as authorized until the minor turns 18.
This solution combines Standard Index Funds or SRI and Monetary Funds, offering a modern and efficient alternative for managing the savings of the youngest. Designed for medium and long-term objectives, the Kids account promises a growth potential greater than that of traditional products of the same kind, ideal for goals such as financing university education or introducing children to the financial world.

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Key benefits of inbestMe Kids Account

  • Personalized investment for the future: Each account is designed based on the time horizon and specific goals for the child, maximizing long-term growth opportunities.
  • Low costs: Like all inbestMe accounts, Kids is characterized by competitive rates that allow a greater part of the return to be allocated to capital growth.
  • Automated management: inbestMe uses advanced technology to manage investments automatically, adjusting the strategy as the market and portfolio needs evolve.
  • Access to diversified portfolios: The Kids account includes diversified investment options such as global ETFs, which reduces risks and maximizes performance opportunities over time.

Introducing your children to the world of investment not only builds their financial future, but also fosters a culture of saving, planning and financial responsibility from an early age. Choose the inbestMe Kids Account as the best savings account for children. Get in touch with our team!

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