Every parent is different, some condemn their children, others embrace them with love.
As a rule, responsible parents try to facilitate their children\’s entry into society by saving a portion of the family budget. Of course, it is up to each of us to do this, but it does not always work out as well as we would like. After all, the modern era, which may seem friendly on the surface, is rather a plundering age that tells us to “grab a bigger share for ourselves. Indeed, modern society is markedly supportive of self-interest.
But let\’s put aside the socioeconomic analysis and focus on ways to save for our children.
How should we save for our children today?
There are several options, not all of which are convenient. One can save in the form of a savings account, checking account, building society, or mutual fund. Or they can buy real estate or bonds (state or municipal bonds, not corporate bonds) or stuff their money into gold.
Building savings, savings and checking accounts, even time deposits, are no longer attractive. This is due to a significant drop in interest rates, which even inflation cannot cover. Mutual funds are a more appropriate solution. Mutual funds, for example, are longer-term investment fundsthat are also safer to invest in because their financing strategies change, becoming more dynamic initially and then more conservative as they approach adulthood age. Investing in equity funds is more risky and requires constant monitoring of market trends and is therefore recommended only for experienced investors
depending on the mutual fund setup and risk level
The difference between mutual fund investments and, for example, pension supplemental savings is considerable. Investment in mutual funds guarantees a profit of up to SEK 200,000 over 18 years of accumulation, whereas pension supplemental savings can only accumulate about SEK 65,000 over the same period. The difference, however, lies in the mutual fund structure. The more dynamic ones have a higher valuation of about 6%, while the more conservative ones have only about 1.5%.
