Another option for saving for your children's future is an automatic subscription to shares. If you choose this option, you commit to making regular deposits of an amount of money, typically, over a long time. The bank uses this money to buy shares traded on the stock market. Customers can choose where they want to invest (e.g., Telefónica, Iberdrola, BBVA, etc.).
Trading on the stock market can yield positive results in the long term. Therefore, this can be a good option for saving for your child's education, trips abroad, or tuition fees.
Start a savings plan
A savings plan is a financial product designed to accumulate money over a long period of time.
- You can make regular or one-off contributions which, in turn, generate interest.
- When opening a savings plan, you can name your children as beneficiaries. Alternatively, you can name yourself as the beneficiary and eventually withdraw and deposit the money into your children's accounts.
- Savings plans are designed to be used during your retirement. However, you can choose to withdraw your money at any time. This is the key difference between savings plans and pension plans. It is also the reason why savings plans are the perfect savings option for your children.
- The taxation of savings plans offers greater benefits than that of other savings products.