Saving has a fundamental value because it allows us to face unexpected events, but also to face investments such as, for example, buying a house.
Many experts insist on the necessity of implantation Financial education From childhood to old age … Adulthood, the ability to properly manage both savings and salary, among other things.
Also, many parents, in their desire to provide resources for their children from a young age, open an account for them since they were young and put money into it month after month. However, this may be a mistake in the future, as financial expert Serge Torrens warns on his Instagram account.
A financial expert’s advice on the dangers of opening a checking account for your children
The expert also points out in the video that before making this decision, a number of considerations must be taken into account. “The first is that as you’re putting the money in, if you’re talking about 15- or 20-year terms, OK Putting money in the account loses value over time.. It accumulates a lot Economic inflation“So you have to invest that money,” he highlights.
Many parents place the account in the minor’s name, and manage it until they reach the age of majority. According to Torrence, it is also important to keep this in mind “At 18, you will have access to all the money and we will not be able to restrict it.”.
Finally, he explains that you have to be careful with taxes: “When you turn 18, you will have to face taxes Taxes that may arise from stocks, bonds or funds that were».
For these three reasons, Serge Torrens advises parents to open the account in their name and not in the name of the minor and “put and invest the money automatically every month.” “When a boy or girl needs money when they grow up, you take it out of the account and give it to them.”trench.
Despite this conclusion, some users have insisted that giving money when you’re older also means paying gift tax.