„You don’t talk about money,“ I have heard this saying to the younger generation several times, especially here in Germany. But let me make one thing clear: I think it’s nonsense! Because who else should the younger generation learn a smart handling of money from, if not from their parents and grandparents?

If the financial well-being of your family is important to you, then don’t taboo money topics at home. On the contrary, show your children and grandchildren that it’s worthwhile to save regularly. And also show them one of the most rewarding ways to build wealth: the savings plan. The easiest way to do this is with ETF savings plans, which I have already presented to you in a previous issue of Schlussgong.

Perhaps you would like to take the topic of „savings plan for your offspring“ into your own hands first? For this, I have some recommendations for you.

A junior depot is worth it If you are saving for your children or grandchildren, setting up a separate depot makes sense. Many depot and specialized fund banks offer special junior depots that can be set up with the consent of the parents. This has three advantages:

First, there are no fees for depot management until the age of 18, and the ETF savings plans that you can set up there are not more expensive, but rather cheaper than elsewhere. Second, there are a number of junior depots with pleasantly low savings rates, for example 10 euros per month. This allows for saving even with a small budget. At the same time, you can encourage your offspring to set up their own savings plans. Third, children are usually not subject to taxation, and with a non-assessment certificate, you can easily ensure that no capital gains tax is deducted. For comparison: If you run an ETF savings plan for one of your (grand)children under your own name, the profits will use up your tax allowance. But you may need this yourself, so that your own profits remain tax-free up to 1,000 euros per year (2,000 euros for jointly taxed spouses). Extra tip: Show your offspring how the wealth grows You should not hide a junior depot that has been set up once: Show your offspring how the wealth in it grows piece by piece. A minor child is not allowed to access the money without the consent of the legal guardians. So there is no danger that the saved ETF shares will suddenly be sold for overpriced concert tickets or fan merchandise.

Also show your children or grandchildren: In correction and bear phases in the markets, there is no reason to panic, even if the ETF shares initially decrease in value. At the same time, convey the most important savings plan message that generally applies on the stock exchanges: In such phases, it is particularly worthwhile to buy, because the desired securities are then particularly cheap.

Conclusion: ETF savings plans in a separate junior depot are highly recommended, especially when it comes to building wealth for your children and grandchildren. Once you have set them up, you can focus on your own depot again.

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